Forex Investment and Currency Trading

The mood swing in Asia was notable overnight – when the markets went from selling EUR/JPY, AUD/JPY to buying it.  That is where most should focus – as the drive to sell USD/JPY, EUR/JPY and most any equity returned in London. The reprieve post a G20 talk but no action meeting for risk was short lived but based on some view that the market is pricing in the worst.  The action plan of the G20 sounds impressive and the bulls should take some comfort in the future but perhaps not the present.  Bears control the present with the news agenda today likely to scare more people into the depths of the on coming recession.  The NY Empire FED and the Industrial Production report are both likely to show horrific weakness in the manufacturing economy. No one wants to be either short or long anything.  So easy to see how those that can see beyond today may see more opportunity.  Maybe the US markets can shake off the blues and believe in big plans.  We will see – but for those that want to trade FX today expect it to be range bound event with 1.25 and 1.28 EUR the prison walls. 
NEWS

• WSJ: Auto-Parts Makers Push for Aid. Auto-parts makers are requesting access to the government’s $700 billion financial-industry rescue fund, and Democratic lawmakers are planning tough conditions — including a government oversight board — on a proposed aid package for Detroit’s troubled auto companies. Democratic lawmakers Monday plan to unveil a bill that would give the Big Three auto makers access to the $700 billion Troubled Asset Relief Program set up in October to help ailing banks and other financial firms. As written, the legislation wouldn’t include auto-parts makers. Parts makers are seeking to change that in a letter signed by nearly 100 companies and being sent to the House and Senate on Monday. In the letter, the Motor and Equipment Manufacturers Association, a trade group, will ask that its members get equal access to TARP funding sought by the car makers.
• FT: World leaders unite to restore growth. World leaders pledged to shore up global growth, avoid protectionism and move quickly on regulatory reform at the conclusion in Washington at the weekend of the Group of 20 summit to address the economic crisis. Presenting a united front, leaders from both developed and developing nations promised to take “whatever further actions are necessary to stabilise the financial system” and vowed to “use fiscal measures to stimulate domestic demand to rapid effect, as appropriate”. People at the talks said the statement would give fresh momentum to national stimulus packages. World leaders said they would require regulators to set up “colleges of supervisors” to monitor global banks and said ministers would report back by March 31 on issues such as strengthening of the credit derivatives markets and review of financial sector pay schemes, with further reforms to follow.
• Bloomberg: Obama Says U.S. Will Do `Whatever It Takes’ to Revive Economy. President-elect Barack Obama said the U.S. government will do “whatever it takes” to revive the economy, and that means “we shouldn’t worry about the deficit next year or even the year after.” In the short term, “the most important thing is that we avoid a deepening recession,” Obama said in an interview broadcast last evening on CBS News’s “60 Minutes.” Obama also said the government needs to provide assistance to the automobile industry. Such aid — in the form of a “bridge loan,” he suggested — must be provided on condition that management, labor, suppliers and lenders come up with a plan to make the industry “sustainable,” he said.