The euro had a rough time since the recession in 2008. Some people even talked about disintegration of the shared 17-nation currency. Such talks receded in 2010, but returned in 2011, though there are not many analysts who believe in a collapse in the eurozone, at least in the near future. Unfortunately for those traders who want to be bullish on the euro there are not many reasons, if any, to be optimistic about the currency.(...)
Read the rest of Forecast: No Hope for Euro in 2012? (342 words)

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And not a day too soon.  Bloomberg article.

Happy thoughts from Dr Doom.

“The conservative government of Mariano Rajoy has started to quietly beg the EU to ease up on deficit targets which require savage spending cuts.”

Zerohedge.

Love him or loathe him,  latest from AEP at The Telegraph.

Hardly a surprise.

The Canadian dollar was rallying for a third week against the US dollar and the Japanese yen on a back of surging commodity prices. Commodities jumped after the US Federal Reserve announced its intention to keep interest rates low for a prolonged time, leading to weakness of the US currency. The currency was down against the euro for the second week.(...)
Read the rest of Loonie Rallies for Third Week, Going to Upside with Commodities (133 words)

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The Swiss franc rose against the US dollar amid speculations that Greece is struggling to persuade creditors into forgiving part of the nation’s debt. The currency was falling against the euro and the yen on prospects for Swiss central bank’s intervention, but closed almost unchanged.(...)
Read the rest of Franc Rises, Will SNB Intervention Follow? (118 words)

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The New Zealand dollar closed higher versus its US counterpart as nation’s trade balance posted an unexpected surplus last month. The currency closed lower against the euro and the Japanese yen.(...)
Read the rest of NZD/USD Rises to Highest Since September as Trade Balance Posts Surplus (166 words)

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US GDP rises 2.8% in Q4; final sales up only 0.8%; inflation tumbles; Core PCE up 1.1%, down from 2.0% ECB’s Draghi: Europe has avoided credit crisis thanks to LTRO University of Michigan consumer sentiment rises to 75 final in January from 74.0 prelim NY Fed’s Dudley: Unemployment unacceptably high, inflation seen decelerating BOE’s Miles: [...]

By Denny Gulino WASHINGTON (MNI) – The hour has almost arrived for an important bookeeping entry at the U.S. Treasury Department, the notation that from this day forward the U.S. government can borrow another $1.2 trillion. Don’t look in your inbox for that email from Treasury alerting the world at the close-of-business trigger time. There [...]

And by the end of the week “Well Joe and me and two of my best contacts all think it's gonna see 1.3225 first. If I were a euro bull that would certainly unsettle me ” Well guess we’re not sooo shabby after all. Incase you missed it; 26/1/12 At 1.3115 we had a poll. [...]

IMF: Belgian economy faces difficult outlook It should be able to survive on summit income alone… EUR/USD is going out on its highs, reaching 1.3229. 1.3245 is the 38.2% retracement of the drop from 1.4250 while a 1.3250 barrier is rumored as well.  

Suggests this rally could have a way to run…  

Not so hot, apparently. Looks as though privatization proceeds will be a goose-egg in the first quarter of 2012.

To extend life of program through 2013 from scheduled end of 2012 Will boost incentives to banks to modify loans I guess I’m not eligible. I pay my mortgage…

By Chris Cermak WASHINGTON (MNI) – The outlook for the U.S. economy in 2012 is looking a little bleaker after the release of Friday’s fourth-quarter GDP report, which showed growth was propped up in large part by temporary factors that are unlikely to carry through into this year. While the Federal Reserve and others stressed [...]

Talks to continue Saturday

Vee haf vays of making balanze see budget! Wasn’t an external budget watchdog part of the second bailout?  

Aims to complete second bailout negotiation with EU/IMF by middle of next week at latest Greece will not default 2011 deficit expected to end up at 9.5% of GDP Greeks realize more fiscal measures are necessary Papademos probably wishes he were back in the cozy confines of the ECB board room.  

One of Bill Clinton’s most effective defense mechanisms when caught with hand in the cookie jar (or something else) was that the charge was “old news”. Mario Monti just used that defense to dismiss the Fitch downgrade. His reaction to the old news is “detached serenity”, according to Reuters. Well played, Mario! Well Played…

Ratings matter for insurance companies…You don’t want customers worried over your ability to pay claims…

38.2% retracement of the slide from near 1.4250 to 1.2625 comes in at 1.3244 That 1.4250 was the blow-off high from the last short-squeeze from hell back in October, it should be noted.  

US DATA: BLS 2011 union membership report says membership rate was 11.8 percent, essentially unchanged from 11.9 percent in 2010. The number of wage and salary workers belonging to unions, at 14.8 million, also showed little movement over the year. In 1983, the first year for which comparable union data are available, the union membership [...]

US DATA: for those making Chicago PM projections, the 2012 seasonal adj factors appear in a table on the MNI Main wire.

–Republicans Likely To See Any Admin Tax Plan As Political Ploy –Hill GOP Plans To Win Control of Congress Next Year, Write Own Bill By John Shaw WASHINGTON (MNI) – In comments to reporters this week, House Speaker John Boehner accused President Obama of being in “total campaign mode” since last fall. So it stands [...]

An unexpected downgrade coming near the top of a important range. Dip limited to 35 pips. What do you do if you are nursing a short? Panic! EUR/USD right back above 1.3200…

Ireland was affirmed at BBB+ with a negative outlook. Belgium cut to AA from AA+. Italy two notches to A- from A+. Spain cut two notches to A from AA-. Not much reaction to the cuts as ratings agencies become increasingly irrelevant. Fitch says the countries cut do not accrue the reserve currency benefits of [...]

Doesn’t see Greek default Bank nationalization not the answer but must embark on resolution process for weak banks Davos drivel at its very best…