Pentagon To "Temporarily" Fire 800,000 If No Cliff Deal; Chaos To Ensue

on , from zerohedge.com

Just in case the stakes in the final episode of the 2012 season of the "Fiscal Cliff" soap opera, and a 30 second advertising block was not selling for a record amount, here comes the Pentagon with a warning that it may fire almost 1 million civillians their services will be required but unpaid if there is no Cliff deal. From the WSJ: "Mandatory federal spending cuts designed to be prohibitively drastic will become a reality on Wednesday if negotiators remain unable to reach an agreement to avert the reductions. Illustrating the gravity of the cuts, the Pentagon plans to notify 800,000 ... (Read the full story)

Stock futures and USD/JPY take off

on , from forexlive.com

Stock market futures are defying fiscal cliff fears. There is chatter about comments from Senator Bob Corker saying a fiscal cliff deal will probably happen today. Update: Here is what he said. “I do think something is going to happen. I think it happens today.” Senate majority leader Reid will have an update at 11 am ET (1600 GMT). I suspect some frontrunning of the usual early-January rally in risk assets is equally responsible for the improvement, with EUR and GBP now taking part. (Read the full story)

EUR/USD Dec 31 – Fiscal Cliff Hopes Fading

on , from forexcrunch.com

EUR/USD has edged lower, and dropped below the 1.32 line as US lawmakers have failed to reach an agreement on the fiscal cliff. Although talks between the Republicans and Democrats continue, the prospects of a last-minute breakthrough do not look good. The final US release of 2012 looked sharp, as Pending Home Sales jumped 1.7%, well above the forecast of a 0.3% decline. With the markets closed on Tuesday for the New Year’s holiday, trading volumes remain thin. This has reduced liquidity and could result in increased volatility as we wind up 2012. There are no scheduled releases from the Euro-zone or the ... (Read the full story)

EUR/USD Trading Near Consolidation Support

on , from fxtimes.com

Consolidation: EUR/USD continues to trade within the consolidation pattern seen in the 4H chart, which has reflected an indecisive market during the holiday season. As we gear up for the final US session of 2012, the EUR/USD trades under 1.32, near the consolidation support area. If the market is like it has been during the holiday season, it should have a tendency to get back to the middle of the consolidation range, around 1.3230. Scenarios: Technically the EUR/USD has not topped, and the RSI shows maintenance of bullish momentum bias, while the reading remains above 40 after going above 70. Only a break ... (Read the full story)

4 Reasons To Be Bullish On Euro In 2013 - ANZ

on , from efxnews.com

Set against the backdrop of unconventional central bank reflation and a modestly improving cyclical outlook for the global economy, it is very reasonable to expect the EUR to extend its gains into 2013, says Australia and New Zealand Banking Group (ANZ). ANZ outlines 4 reasons behinds this bullish EUR call: • The ECB will be the Single Supervisory Mechanism for the systemically important banks in the EZ and will no doubt ensure adequate capitalisation of those banks and cleaning up of failed ones. • The ECB has pledged to play its role in doing “whatever it takes” to support a return to ... (Read the full story)

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