The USD eased during the Asian session as did JPY on the crosses on renewed risk appetite with the market focusing on hopes for the passage of the US $825bln stimulus package in the House on Wednesday. In addition, hopes for more liquidity measures by the Fed later today, coupled with the reports that the FDIC may be tapped to run a "Bad Bank" were all encouraging for the markets.

When we last spoke you discussed how you use investor sentiment indicators ("dumb money") and institutional volume indicators ("smart money") in your analysis.

European government debt futures are likely to open little changed with a negative bias, in line with overnight Treasuries, and higher Asian stock markets, which were supported by hopes for US stimulus measures and Fed actioin ahead of this evening's FOMC announcement.

European Session EUR/USD - Euro Dollar 1,3251.

US Dollar Could See Volatile Day on Wednesday Ahead of FOMC Rate Decision, Policy Statement Euro Gains on Strong German IFO Results, Reverses from Resistance at 1.33 Japanese Yen Ends Tuesday Mixed as Risky Assets Consolidate Within Tight Ranges Australian Dollar Could Gain Overnight on Australian CPI Figures, New Zealand Dollar Faces RBNZ Rate Decision US Dollar Could See Volatile Day on Wednesday Ahead of FOMC Rate Decision, Policy Statement The US dollar ended Tuesday broadly mixed across

INTRA-DAY AUD/USD OUTLOOK : 0.6665 Updating time : 28 Jan 2009 05:34 GMT Aussie's breach of 0.6670 (Aust.) suggests the pullback fm y'day's 0.6720 high has ended at 0.6571 n consolidation with upside bias is seen for gain twd said res, however, break needed to confirm up- move fm last wk's 0.6417 low has resumed to 0.6750.

Wednesday, the dollar fell to an 8-day low against the British pound as market players look ahead of the U.S.

INTRA-DAY GBP/USD OUTLOOK : 1.4170 Updating time : 27 Jan 2009 23:33 GMT Despite y'day's retreat fm 1.4242, renewed buy ing at 1.4024 has lifted cable n as long as this sup holds, upmove fm last week's low at 1.3500 to correct recent decline shud resume for re-test of 1.4242 n later twds 1.4320/30.

The indices had what we expected, a non-volatile and somewhat quiet pre-FOMC session, although gains were had at the end.

News and views Market tone was mixed last night, supported by positive earnings reports, but weighed by negative economic data. Bank stocks performed (e.g.

As the Federal Reserve adopts a zero interest rate policy (ZIRP), the central bank is widely expect to hold borrowing costs at a record low as the worlds largest economy faces its longest recession since the 1930s.

German February GfK consumer confidence remained steady at 2.2, with January revised up to 2.2 from 2.1.

My technical work in the iShares Investment Grade Corporate Bond ETF (LQD) is very constructive, and points still higher on an intermediate term basis.

Consumer Prices Down By 0.7% In December According to the Central Administration of Statistics (CAS), Lebanons consumer basket of prices registered a significant 5.5% growth on a year to date (YTD) basis through December 2008.

It is still slim pickings for range trades in the currency market. While volatility has settled somewhat, the too many pairs are threatening to force breakouts and revive long-term trends.

I have always suggested and firmly believe that learning how to become a consistently profitable market speculator is not that difficult.

Oil price plummeted severely by 8% Tuesday to close at 41.98 (day-low: 41.41) amid concern on demand destruction as well as likely build-ups in stockpiles in Cushing, Oklahoma.

The Japanese yen continued to strengthen against the U.S.

Stock markets across the Asia-Pacific region ended higher Wednesday, as investors shrugged off poor corporate data and bought financials and technology stocks on expectations that credit markets will improve as governments across the world increase stimulus measures and drive down interest rates.

The USD eased during the Asian session as did JPY on the crosses on renewed risk appetite with the market focusing on hopes for the passage of the U.S....

EUR/USD gains have been capped by EUR/GBP sales, with the cross dropping to lows of 0.9270 this session.

Current Yesterday USD 0.22000 0.23250 GBP 1.50000 1.51750 EUR 1.11125 1.11500 JPY 0.22313 0.22188 CHF 0.18833 0.18667 AUD 5.75000 5.87500 CAD 1.00000 1.03333 NZD 5.10000 5.30000

Current Yesterday USD 0.22000 0.23250 GBP 1.50000 1.51750 EUR 1.11125 1.11500 JPY 0.22313 0.22188 CHF 0.18833 0.18667 AUD 5.75000 5.87500 CAD 1.00000 1.03333 NZD 5.10000 5.30000

Students Question: In this case I would wait for the 20 day MA to confirm that the trend was re-established by crossing back over the 50 day MA before...

Students Question: In this case I would wait for the 20 day MA to confirm that the trend was re-established by crossing back over the 50 day MA before...

The Euro moved higher against the US Dollar in overnight trading, retaking the 1.32 level to test as high as 1.3264.

The Euro moved higher against the US Dollar in overnight trading, retaking the 1.32 level to test as high as 1.3264.

---------------------------------------------------- Update Time: 27 Jan 2009 19:01GMT INTRA-DAY USD/JPY OUTLOOK - +88.55+ As dlr has retreated after meeting renewed sell ing below 89.20, suggesting as long as this lvl holds, bearishness remains for intra-day fall fm 90.08 top to retrace recent upmove to resume, below 88.42 sup wud confirm n extend to 88.20.

Dow Jones : Resistance(daily close) : 9382.12 , 9744.26, 10 091.30, 10 935.23, 11 164.57, 344.92 and 11 520.30.

Several words about the EUR/USD future.

. Bias: Mixed - waiting for breaks

INTRA-DAY EUR/USD OUTLOOK : 1.3252 Updating time : 28 Jan 2009 02:29 GMT Although euro has risen after brief retreat n gain to 1.3275/80 cannot be ruled out, abv 1.3300 is needed to signal upmove fm 1.2764 (last week's low) has once again resumed n bring subsequent re- test of y'day's high at 1.3330.

Germanys Consumer Price Index headlines the calendar in overnight trading, with expectations calling for a monthly decline of -0.3% to keep the annualized...

Germanys Consumer Price Index headlines the calendar in overnight trading, with expectations calling for a monthly decline of -0.3% to keep the annualized...

US Dollar: Acts of Desperation? The Federal Reserve is currently holding a two day monetary policy meeting and it will be interesting to see whether they are desperate enough to introduce radical programs that can incite the enthusiasm of investors.

AUD/USD : bullish divergence recognized and we went long.

AUDUSD breaks above 0.6656 resistance, suggesting that a short term cycle bottom has been formed at 0.6418 level on 4-hour chart. Further rally could be seen to retest 0.6840 medium term resistance.

INTRA-DAY USD/JPY OUTLOOK - 89.15 Last Update At: 28 Jan 2009 00:50 GMT Dlr's retreat fm 89.48 due to cross unwinding in yen suggests further consolidation below y'day's high at 90.08 is in store n pullback to 88.80/90 cannot be ruled out, however, only breach of 88.42 wud bring retrace.

USD weakens before FOMC tonight U.S.

Update Time: 27 Jan 2009 08:16GMT Next Update At: 00:30GMT EUR/USD - 1.3240 Although euro's rally above 1.3087 signals the rise from last Friday's low at 1.2764 to retrace recent decline has resumed and gain towards 1.3300/10 cannot be ruled out, near term anticipated over-bought condition should prevent sharp move beyond there and reckon price would falter below 1.3387 (previous sup), yield retreat later.

FOMC Preview: Will the Rate Decision Impact the Dollar? For the first time since August 2007, the Federal Reserve is not expected to change interest rates.

Dollar Pares Losses, Awaiting Fed Rate Decision The dollar pared losses versus its rivals on Tuesday as US consumer confidence dropped to the lowest level on record and home prices continued to decline.

The UK government must do more to ease the flow of credit or the economic recovery will be in jeopardy, the UK Treasury Select Committee said in its first formal response to the Treasury's 2008 Pre-Budget report that was announced in November. Fiscal stimulus measures totaled about GBP 20 billion in UK Chancellor Alistair Darling's pre-budget report, and there are reports Darling is prepared to borrow even more to dig the UK economy out of a recession, but today the Treasury Committee said the government must do more. "The lack of bank lending remains the single most critical problem for the economy in the near term," it said.

Wednesday, the Indian market is trading higher on the back of gains in the US overnight and a firm trend in the rest of the Asian markets this morning.

Wednesday in Asia, the Swiss franc fell to an 8-day low against the British pound.

Australias Westpac Leading Index fell -2.2% in the year to November, the first negative reading for the annualized rate in over 7 years.