Risk Appetite Hurt As Fiscal Cliff Vote Cancelled

has weakened against most of its major counterparts, after US House Speaker Boehner unexpectedly withdrew the proposal of asking the House to vote on a Republican plan to avert the fiscal cliff.

He did so, as it seems that the plan would have not pass. The single currency had benefited in the previous days from an improved market sentiment improved following positive developments regarding the US fiscal cliff situation and the move by the S&P rating agency to lift Greece to an 18-month high of “B-”; citing a strong and clear commitments from the eurozone to keep the troubled nation in the single currency block.

The highlight for the week is the Japanese yen (JPY) following Japan’s elections over the weekend. The Japanese yen (JPY) failed to weaken against the US dollar (USD) following Bank of Japan (BoJ) decision to add another JPY 10 trillion to the Asset Purchase Program. This was because the inflation target was left unchanged however this may change in the near future.

The US 500 (SPI) and US Tech (NDQ) dived following the headlines on Boehner withdrawing the fiscal cliff plan vote. The GER 30 (DAX) followed suit after a new record high at 7673.8.

Silver (XAG) is trading below 30 US dollars (USD) an ounce for first time since August. The precious metal has been falling, seemingly non-stop, for the whole month. Silver (XAG) dived from 33.4625 on the first trading day of December to 29.608, yesterday’s low. This represents a staggering 11.5% depreciation and it will be interesting to see how the precious metal will act in the remaining days of 2012.

OUTLOOK
EUR/USD has a pivot at 1.3185, with a preference to LONG at 1.3195. 33% of deals buy EUR.

USD/JPY has a pivot at 83.85, with a preference to LONG at 83.85. 41% of deals buy USD.

GBP/USD has a pivot at 1.6240, with a preference to LONG at 1.6240. 27% of deals buy GBP.

AUD/USD has a pivot at 1.0480, with a preference to SHORT at 1.0480. 33% of deals buy AUD.

GOLD has a pivot at 1661, with a preference to SHORT at 1661. 73% of deals buy GOLD.

OIL has a pivot at 90.50, with a preference to SHORT at 90.50. 27% of deals buy OIL.

US 500 has a pivot at 1434, with a preference to SHORT at 1434. 10% of deals buy US 500.

UK 100 has a pivot at 5915, with a preference to LONG at 5915. 17% of deals buy UK 100.

The above data is generated by Trading Central, and the deal direction data is obtained from the easy-forex Inside Viewer.

CALENDAR
GBP data at 09:30 GMT - 3rd quarter flash GDP, forecast at 1.0%
CAD data at 13:30 GMT - GDP m/m for October, forecast at 0.1%
USD data at 13:30 GMT - Durable Goods Orders in November, forecast at 0.2%
USD data at 14:55 GMT - Michigan Sentiment Preliminary, forecast at 74.7