"We must remain vigilant, ready to respond and to manage unpredictable events"; he recapped Tsy programs and said "we expect banks to increase their lending" as a result of TARP. Said regulators "are actively engaged in developing additional programs."

“From now to year-end, we’ll see more strength in low- yielders, the yen and the dollar,” said Benedikt Germanier, a currency strategist in Stamford, Connecticut, at UBS AG, who recommended that investors buy the two currencies. “The demand for liquidity and global yield convergence are supporting the yen and the dollar.”

"Bernanke more or less promised a further reduction in the funds rate at the next FOMC meeting - "reductions from the current ..target of 1% are certainly feasible" but he also made it very clear that unconventional measures will be applied if necessary, including the direct purchase of long Treasuries."

Stocks remain near session lows as Fed Chairman Ben Bernanke speaks about the economy.
In his prepared text, Bernanke said the U.S. economy remains under stress despite the efforts of the Fed and other policymakers.
Bernanke then laid out the future policy options. He said it is "feasible" to cut the fed funds rate below its current level of 1%. He also said that although interest rates can't be cut below 0, the Fed has other policy tools, including increasing liquidity, backstopping liquidity directly in certain financial markets and working with other agencies to minimize systematic risk.
Treasuries rally as the Chairman speaks. The 10-year note is up nearly two points, sending its yield down to 2.71%.

Further FF reductions from 1% "are certainly feasible" but scope for using conventional interest rate policy "is obviously limited." Below-target FF trades stem from GSEs; Fed will continue to explore ways to keep FF closer to target. Fed can also supply additional backstop liquidity directly to mkts; Fed bal sheet will eventually have to shrink, but not now. Fed should take steps to minimize systemic risk. Fed programs have not yet returned mkts to normal; restructuring will take time, and preserving mkt discipline is important. US econ "remains under considerable stress"; conditions "will prob remain weak for a time"; near-term outlook is "weak."

The yen rose against the euro and the dollar as shrinking global manufacturing and a drop in stocks prompted speculation investors will buy back Japan’s currency at the expense of higher-yielding assets. Gains in U.S. notes pushed the yield on the two-year note to 0.92 percent, after falling through 1 percent for the first time on Nov. 20.

Buyers are sitting on the sidelines as stocks trade at or near session lows.
Within the S&P 500, only six components are posting a gain. The biggest percent advancers are Ford (F 2.85, +0.16), +5.9%, and Rohm and Hass (ROH 71.49, +3.08), +4.5%. The biggest percent losers are Liz Claiborne (LIZ 2.10, -0.75), -26.3%, and Janus Capital Group (JNS 6.01, -2.15), -26.3%.

Analyst Tony Crescenzi of Miller, Tabak says "Risk assets such as equities and corporate bonds have tended historically to begin recovering in the middle of recessions, which to some would make the current period seem a safe time to begin buying."

"With indicators pointing to an intensifying global adjustment in employment and business spending, our forecast of the deepest four-quarter GDP slide in the developed world since WW-II appears to be on track."

Stocks trade near recently reached session lows. European markets are also posting steep declines, with notable weakness in material and financial stocks. London's FTSE is down 4.5%, Germany's DAX is down 5.4% and France's CAC is down 4.6%.
President-elect Obama named Hillary Clinton as secretary of state, Janet Napolitan as homeland security secretary, Eric Holder as attorney general and Robert Gates to remain as defense secretary.
Commodities (-2.9%) are under selling pressure, with oil prices down 6.6% to $50.88 per barrel and gold down 5.0% to $775.50 per ounce. The dollar is up 0.6%.

"Incorporating these data, we now see Q3 GDP being revised up to -0.4% from -0.5% instead of being adjusted down to -0.6%. And we now see Q4 growth tracking at -4.9%, up slightly from our prior -5.1% estimate."

Prices weighed by firmer dollar trade weighted index and weaker commodities in general. WTI Nymex currently trades at $51.00, down $3.43, having hit $50.40 earlier.

Lower than expected PMI data out of Europe this morning hit already weak investor confidence, causing the major European indices to slide down over 80pts. FTSE-100 currently down 103pts (-2.4%), CAC-40 down 79pts (-2.4%) and
Xetra-DAX down 123pts (-2.6%).

Broad-based selling interest sends stocks lower. The S&P 500 is currently down roughly 5%.
The financial sector (-7.2%) is posting the largest loss. Goldman Sachs (GS 71.78, -7.21) and Morgan Stanley (MS 13.15, -1.60) are laggards after having their fourth quarter and 2009 earnings estimates cut at Credit Suisse.
General Electric (GE 15.91, -1.26) is down 7.3% after Citigroup said the GE Capital webcast scheduled for Tuesday could also serve as a venue to lower 2009 earnings per share expectations. The industrials sector is down 5.9%.
Ford (F 2.88, +0.19) and General Motors (GM 5.46, +0.22) are a pocket of strength. The automakers, along with Chrysler, are expected to go before Congress Tuesday to lay out their plans on how a potential $25 billion loan from the government would be used.
Ford this morning said it may sell its Sweden-based Volvo Car Corporation. In addition, the Financial Times reports that GM and Ford have approached Sweden's government for financial aid for their Saab and Volvo brands and The Wall Street Journal reported that the United Auto Workers Union is in talks with the automakers to stop a program that pays idled workers.

EUR/USD $1.3000
USD/JPY Y93.00, Y95.50, Y96.00
GBP/USD $1.4900, $1.5750, $1.5800
EUR/CHF Chf1.5335
AUD/USD $0.6480, $0.6500
USD/CAD C$1.2325

Cable's slide continues, the rate extneding lows to $1.4907 after break below support in the area between $1.4935/30. Demand seen placed toward $1.4900, more around $1.4880 ahead of stronger area between $1.4850/40. Strong support remains at $1.4690/50 zone and November 13 low at $1.4560.

Stocks start December on low a note, with commodity related companies showing notable weakness.
Oil prices are down 6.9% to $50.70 per barrel after OPEC decided to leave output unchanged at its meeting over the weekend. The cartel is scheduled to meet again in a few weeks.
Black Friday sales were up 3.0% year-over-year, according to ShopperTrak. The result was better than many analysts had expected, but there are concerns that sales came at the cost of steep discounts and that buying has tapered off.

- ECB will make good use of this room to maneuver

Futures indicate a lower start: S&P futures vs fair value: -22.60. Nasdaq futures vs fair value: -24.00. .

Moving lower again, though this time in tandem with euro-dollar as euro-sterling holds around stg0.8420. Cable eases through earlier lows around $1.4964, extending the base to $1.4960, but reported demand placed to $1.4950 so far able to provide some buoyancy. A break below $1.4950 expected to open a deeper move toward $1.4935/30 ahead of $1.4900. The $1.4900 level also said to hold the strike of an expiring plain vanilla option at the 1500GMT cut.

The following data were published:
07:00 Germany Retail sales (Oct), Y/Y -1.5%
07:00 Germany Retail sales (Oct) -1,6%
08:55 Germany PMI (November) 35,7
09:00 Е15 PMI (November) 35.6
09:30 UK Consumer credit (October), bln +0.8
09:30 UK M4 lending (October) final, bln +39.8
09:30 UK M4 money supply (October) final Y/Y 15.3%
09:30 UK M4 money supply (October) final 2.8% 2.3%
09:30 UK CIPS manufacturing index (November) 34.4

The yen rose against the euro and the dollar as declines in stocks and signs the global economic slowdown is worsening encouraged investors to buy back the Japanese currency at the expense of higher-yielding assets.
The yen also advanced versus the British pound and the Australian dollar after reports showed slumping South Korean exports, shrinking Chinese factory orders and falling Japanese wages. Central banks in the U.K., the euro region, Australia and New Zealand are forecast by analysts to cut interest rates by as much as 1.5 percentage points this week to stem the slump.
“There’s evidence that the global slowdown is getting deeper,” said Michael Klawitter, a currency strategist with Dresdner Kleinwort in Frankfurt. “Central banks across the globe will converge at extremely low levels and that’s firmly positive for the yen.”
The yen appreciated against all major currencies except South Korea’s won as concern of a global recession prompted domestic investors in Japan to bring back overseas earnings.
“Japanese investors tend to repatriate capital during periods of risk aversion,” said Joseph Capurso, a currency strategist at Commonwealth Bank of Australia in Sydney.
Interest rates will be lowered 1.5 percentage points to 5 percent in New Zealand, to 4.5 percent in Australia, to 2 percent in the U.K. and to 2.75 percent in the euro region this week as central banks move to stem the economic slowdown, according to surveys.
The dollar fell against the yen before U.S. reports this week that economists predict will show manufacturing shrank and employers cut jobs by the most since 2001.
U.S. nonfarm payrolls slid by 320,000 in November following a decline of 240,000 the previous month, according to a survey before the Labor Department’s Dec. 5 report. The jobless rate may have jumped to 6.8 percent, the highest level since 1993, a separate Bloomberg survey showed.
“People may look more closely at the U.S. economy, so there’s some scope for dollar depreciation,” said Akio Shimizu, chief manager of foreign-exchange trading in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan’s largest publicly listed lender. “Higher-yielding currencies are losing their appeal because the interest-rate differential isn’t working in their favor.”
The Institute for Supply Management may say manufacturing contracted in November for a fourth month, according to another Bloomberg survey. The Tempe, Arizona-based Institute releases the data at 10 a.m. in New York.
The euro declined against the dollar and the yen as traders bet the European Central Bank will reduce borrowing costs this week in response to the recession.
Europe’s inflation rate fell to 2.1 percent in November from 3.2 percent the previous month, a Nov. 28 report showed, giving policy makers more room to lower borrowing costs when they meet Dec. 4. Retail sales dropped 0.4 percent in October from the prior month, after a 0.2 percent decline in September, a separate survey shows. The report is due Dec. 3.
“European data continue to deteriorate at an increasingly rapid pace and the recent easing of inflation pressures means there is scope for a bold cut by the ECB,” said Danica Hampton, currency strategist at Bank of New Zealand Ltd. in Wellington. “For euro-dollar, this suggests a visit to the recent lows of between $1.2300 and $1.2400 is likely.”

EUR/USD the pair has continued to bargain in a range $1,2610-$ 1,2710.

Resistance 3: Y95.70
Resistance 2: Y94.90
Resistance 1: Y94.30
Current price: Y93.88
Support 1: Y93.60
Support 2: Y92.20
Support 3: Y93.55
Comments: Decrease in share indexes of the Europe became the reason growth of yen against dollar. As the nearest support acts level Y93,55 (low of November 20). Below possible falling to level Y92,00 and further to Y90,90 (thirteen years low). As the nearest resistance level Y94,30 (38,2%FIBO today's falling) acts. Above is possible growth to Y94,90 (61,8 %) and further in area of a maximum on Y95,70.

Resistance 3: Chf1.2300
Resistance 2: Chf1.2200
Resistance 1: Chf1.2155
Current price: Chf1.2085
Support 1: Chf1.2060
Support 2: Chf1.2010
Support 3: Chf1.1925
Comments: The tech hasnэt changed. As the nearest support acts the area of a session low on Chf1,2060. Below possible decrease up to Chf1,2000/10 (38,2 % FIBO of growth Chf1.1550-Chf1.2300). Overcoming of the given level will open road to Chf1,1925 (50,0 % and also a line of support since October 30). As the nearest resistance acts the area of a session high on Chf1,2155. Above is possible growth to a Friday's high on Chf1,2200 and further to a high of November 21 on Chf1,2300.

Resistance 3: $1.5855
Resistance 2: $1.5610
Resistance 1: $1.5530
Current price: $1.5420
Support 1: $1.5280
Support 2: $1.5210
Support 3: $1.5015
Comments: The pound has considerably decreased in relation to dollar. As the nearest support acts the level $1,5015/00 (61,8 % FIBO of growth $1,4690-$ 1,5530, and also a significant psychological level). Overcoming of the given level will open road to $1,4930 (76,4 %) and further to $1,4700/90 (low of November 21). The nearest resistance is the level $1,5145/55 (Friday's low and also a level of 38,2 % of today's falling). In case of overcoming the given level growth to $1,5245 (61,8 %) is probable. Above is located the level $1,5400 (session high).

Resistance 3: $1.3080
Resistance 2: $1.2960
Resistance 1: $1.2830
Current price: $1.2676
Support 1: $1.2570Support 2: $1.2440
Support 3: $1.2330
Comments: Tech on euro hasn't changed. Having pierced support at November 25-26 low around $1.2820/30 ( also 50% of $1.2565 to $1.3080, 38.2% of $1.2430 to $1.3080 move and a neck-line of a "head and shoulders" pattern) euro trades with the heavy tone. Break under the 21-day moving average currently at $1.2736 adds pressure on the pare wich currently targets the last week's low around $1.2565. The sustained break below key support $1.2440/30 wedge base favours slide to October 27 and 28 lows at $1.2330 ahead of $1.2260 (50% of a huge $0.8560-$1.6030 move). Closest resistance is seen at $1.2960. Daily Bollinger band top at $1.3080 and November 5 peak at $1.3110/25 provide solid resistance ahead of the key level at $1.3295/00 (61.8% decline from $1.4865 and October 30 high).

EUR/USD $1.3000
USD/JPY Y95.50, Y96.00, Y93.00
GBP/USD $1.4900, $1.5750, $1.5800
EUR/CHF Chf1.5335
AUD/USD $0.6480, $0.6500
USD/CAD C$1.2325

The yen rose against the dollar and euro on speculation a recession in Japan, the world’s second- largest economy, will encourage domestic investors to bring back overseas earnings.
The currency also gained versus South Korea’s won and the British pound after a Japanese government report today showed wages dropped in October for the first time this year. The dollar fell against the yen before U.S. reports this week that economists predict will show manufacturing shrank and employers cut jobs by the most since 2001.
A recession in Japan deepened last month as manufacturers planned the sharpest production cuts in 35 years and consumers cut spending. Japanese companies plan to fire about 30,000 temporary and part-time workers before the end of the business year in March, the ministry said last week.
The dollar has declined 3.2 percent versus the yen over the past month. U.S. nonfarm payrolls shrank by 320,000 in November following a decline of 240,000 the previous month, according to a survey before the Labor Department’s Dec. 5 report. The jobless rate may have jumped to 6.8 percent, the highest level since 1993, a separate survey showed.
The Institute for Supply Management may say manufacturing contracted in November for a fourth month, according to another survey.
The euro declined against the dollar and the yen as traders bet the European Central Bank will reduce borrowing costs this week in response to the recession.
Europe’s inflation rate fell to 2.1 percent in November from 3.2 percent in October, a Nov. 28 report showed, giving policy makers more room to cut borrowing costs when they meet Dec. 4.
Producer prices in Europe fell 0.3 percent in October from the previous month, after a 0.2 percent decline in September, according to a Bloomberg survey of economists before the report tomorrow. Retail sales dropped 0.4 percent in October from the prior month, after a 0.2 percent decline in September, a separate Bloomberg survey shows. The report is due on Dec. 3.
Traders increased bets the ECB will cut its 3.25 percent benchmark rate. The implied yield on Euribor futures contracts expiring in June declined to 2.42 percent on Nov. 28 from 2.44 percent on Nov. 27.

EUR/USD the rate bargained within the limits of $1,2615-$ 1,2710.

Japan stocks rose, capping their best weekly gain in a month, on expectations governments will take more steps to pull the global economy out of recession.
Mitsubishi Corp. and Mitsui & Co., Japan’s biggest trading companies, surged a second day, bringing their weekly gain to more than 12 percent, on speculation commodities prices will pick up after China cut interest rates. Kyocera Corp., the world’s No. 4 maker of solar cells, soared 17 percent after saying it would buy back shares. Panasonic Corp. tumbled 11 percent as slumping global demand and falling prices prompted the world’s biggest electronics maker to slash its net income target 90 percent.
The Nikkei 225 Stock Average added 138.88, or 1.7 percent, to close at 8,512.27 in Tokyo. The broader Topix index rose 5.79, or 0.7 percent, to 834.82 after swinging between gains and losses at least eight times. The Nikkei had a 7.6 percent gain this holiday-shortened week, while the Topix rose 4 percent, the best weekly climb for both gauges since the period ending Oct. 31.
The Nikkei lost 0.8 percent in November for a sixth-straight monthly drop, the longest losing streak on record for the gauge going back to 1970. U.S. markets were closed yesterday for the Thanksgiving holiday.
The People’s Bank of China on Nov. 26 reduced its benchmark lending rate by the most in 11 years, while the European Union proposed a 200 billion euro ($259 billion) spending package, joining Japan, China and the U.S. in crafting stimulus plans.
Mitsui, which gets more than half its earnings from commodities, climbed 8.3 percent to 846 yen, bringing its weekly gain to 12.4 percent. Larger rival Mitsubishi added 6.3 percent to 1,185 yen, adding 13.7 percent since Nov. 21. Mitsui O.S.K. Lines Ltd., operator of Japan’s largest fleet of iron-ore carriers, rose 6.1 percent to 507 yen. Sumitomo Metal Mining Co., Japan’s No. 2 copper smelter, surged 11 percent to 908 yen, the highest since Oct. 3
Nippon Steel Corp., the world’s second-largest steelmaker, jumped 5.3 percent to 297 yen, while Komatsu Ltd., which counts China as its fastest growing market, climbed 6.9 percent to 1,144 yen. Kawasaki Heavy Industries Ltd., which makes Japanese bullet trains, advanced 6.8 percent to 204 yen.
China’s Ministry of Railways will double investment in the nation’s train system next year, the Nikkei newspaper said today. The project will require 20 million tons of steel and 120 million tons of cement, the Japanese-language newspaper said.
Kyocera, an electronics component maker, soared 17 percent to 5,960 yen, posting the steepest climb on the MSCI World Index. The company yesterday said it will buy back up to 4.2 percent of its outstanding shares. Speaker and microphone maker Foster Electric Co. rose 16 percent, the most since May 2002, to 726 yen, after announcing its own buyback.
Panasonic sank 11 percent to 1,144 yen. The company said business conditions were “deteriorating sharply” when it yesterday reduced annual targets for sales, operating profit and net income. Nomura Securities Co. cut its ratings on Panasonic to “neutral” from “buy.”
The Topix has rebounded 12 percent since dropping to the lowest level in 24 years on Oct. 27. Softbank Corp., the nation’s third-largest wireless operator, led gains in that period, doubling its value. Oriental Shiraishi Corp., a civil engineering company that filed for bankruptcy protection on Nov. 26, was the worst performer, plunging 96 percent. Four of the 10 biggest losers were real estate or construction companies.

European stocks had their best week since January 1987, led by commodity producers and financial companies as investors speculated efforts by governments worldwide will help shore up the economy and stabilize markets.
BHP Billiton Ltd. climbed by almost half in value after the world’s largest mining company withdrew its $66 billion hostile takeover for Rio Tinto Group. Royal Dutch Shell Plc and Total SA rallied more than 10 percent as crude oil posted its first weekly advance in a month. Allianz AV and Deutsche Bank AG surged more than 30 percent, leading gains among banks and insurers.
National benchmark indexes rose in all 18 western European markets. Germany’s DAX Index, France’s CAC 40 and the U.K.’s FTSE 100 all rallied 13 percent.
Shares of BHP soared 49 percent after the company abandoned its yearlong pursuit of Rio Tinto, blaming the rout in commodity prices and the credit-market squeeze for derailing the offer. Rio Tinto dropped 23 percent.
Shell led energy companies higher as crude oil advanced 3.1 percent to $51.46 a barrel, climbing for the first week in four.
Europe’s largest oil company jumped 19 percent, while Total, the region’s third-largest, gained 12 percent.
Allianz, Europe’s largest insurer and owner of Dresdner Bank, climbed 40 percent. Commerzbank AG, Germany’s second- biggest lender, said it will accelerate its takeover of Dresdner by as much as a year in a revised deal valued at 5.1 billion euros ($6.6 billion).
Deutsche Bank rallied 49 percent, while Commerzbank increased 33 percent.
Irish Life & Permanent Plc, the country’s largest mortgage lender, soared 53 percent in Dublin trading after the Irish Association of Investment Managers, whose 12 members manage about 260 billion euros ($336 billion), proposed jointly investing with the government in the nation’s biggest banks.
Bank of Ireland Plc, the country’s biggest bank by assets, increased 15 percent, while Allied Irish Banks Plc increased 26 percent.

Despite choppy, listless trading, stocks managed to finish at their session high with a gain of nearly 1%. The session's advance helped contribute to a 12% gain for the week. Stocks still shed 7.5% for November, however.
Volume was light Friday, thanks partly to shortened session. Less than 1 billion shares traded hands on the New York Stock Exchange.
The choppy action had stocks trading in mixed for much of the session. A late rally helped eight of the 10 economic sectors finish in positive ground.
Financial stocks (+2.9%) outperformed on a relative basis. Bank of America (BAC 16.25, +0.82) made gains despite having its target price cut by analysts at UBS. Meanwhile, the British government took a majority stake in Royal Bank of Scotland (RBS 17.58, +0.85) after investors snubbed a state-backed capital raising plan for the bank.
Citigroup (C 8.29, +1.24) made impressive gains of its own. According to a report, analysts at Barclays believe Citi will continue to see normalized earnings of more than $20 billion, and also believe the recent government injection will curtail risk. The bank's card unit may carry risk going forward as cardmembers contend with rising unemployment and uncertain economic conditions.
Such headwinds have many retailers expecting a slow holiday shopping season. The holiday shopping season officially kicked off today, Black Friday, as consumers flock to stores in search of bargains. Retailers ended the session 1.6% lower.
Global handset maker Nokia (NOK 14.17, -0.45) said it will no longer sell mobile phones in Japan, except for certain high-end models. According to Nokia's latest quarterly filing, device volume in the Asia-Pacific region contracted quarter-over-quarter, despite continued growth in greater China. Nokia recently stated that it expected global volume to slow amid weaker consumer spending.
Auto makers have also been contending with a challenging environment, but their performance this session was impressive. Auto makers surged 19.0% as a group. Their advance followed reports that General Motors (GM 5.24, +0.43) is studying whether to divest such brands as Saturn, Pontiac, and Saab in order to save money and reduce overlap. Recent strength in the industry is also owed to what is expected to be a forthcoming bailout plan for auto makers.
Industrial stocks (+2.7%) also made strong gains during the session, led by General Electric (GE 17.17, +0.98). GE gained despite word that Korea-based LG Electronics will not acquire GE's home appliance unit, ending months of speculation.
Energy (-1.5%) was the worst performing economic sector. It dropped as a result of sliding oil prices. Oil was most recently down 4.0% to $50.25 per barrel, or down almost 65% from its record high. The drop in oil prices has many expecting OPEC to order a cut in production during its meeting this weekend.
With stocks continuing to trade in a volatile manner, investors have been seeking out the relative safety of Treasuries, which has pushed the yield of the 10-year Note to historical lows near 2.95%.

Resistance 3: Y97.40
Resistance 2: Y96.40
Resistance 1: Y95.70
Current price: Y95.25
Support 1: Y94.80
Support 2: Y94.30
Support 3: Y93.55
Comments: Concern of investors current crisis continues to support to yen. The immediate support - Y98,80. Overcoming this point would open the way to the level Y94,30 (line support from 24 October, which was built by lows 24 October and 19 November). The following may drop to Y93,55 (low of 20 November). The nearest resistance advocated area Y95,70 (38,2% FIBO of reducing Y97,40-Y94,65). Overcoming this level would open the way to the level Y96,40 (61.8%). Above the possible return to Tuesday's high on Y97,40.

Resistance 3: Chf1.2120
Resistance 2: Chf1.2050
Resistance 1: Chf1.2020
Current price: Chf1.1991
Support 1: Chf1.1925
Support 2: Chf1.1840
Support 3: Chf1.1760
Comments: The pair remains within the former range. As the nearest support acts the area of Chf1,1925 (50,0 % FIBO of growth Chf1.1550-Chf1.2300, and also Tuesday's low). Break under will pave the way to Chf1,1840 (61,8 %) and further to Chf1,1760 (76,4 %). The nearest resistance is the Chf1,2020 area (38,2 % FIBO of decrease Chf1,2300-Chf1,1830). Above the growth to Chf1,2050/75 (50,0 %, МА (200) for Н1, yesterday's high and Tuesday's high) is possible with the further upside target around Chf1,2120 (61,8 %).

Resistance 3: $1.5855
Resistance 2: $1.5610
Resistance 1: $1.5530
Current price: $1.5420
Support 1: $1.5280
Support 2: $1.5210
Support 3: $1.5015

Comments: The dollar eased slightly against the pound. The nearest resistance there is a level $1,5530 (a yesterday's high and also a low of November 7). After overcoming the given level there is a chance of the test $1,5610 (50,0%FIBO of falling $1,6680-$ 1,4555). Above is located the level $1,5855 (61,8 %). In case of the decrease, as the nearest support will act $1,5280 (the line of support constructed on low of Friday, Tuesday and Wednesday). Below possible deviation in area $1,5210 / $ 1,5185 (38,2%FIBO of growth $1,4690-$ 1,5530, and also area of Monday's high). Overcoming of the given level will open road to $1,5015/00 (61,8 %, and also a significant psychological level).

Resistance 3: $1.3080
Resistance 2: $1.2960
Resistance 1: $1.2830
Current price: $1.2676
Support 1: $1.2570Support 2: $1.2440
Support 3: $1.2330
Comments: Having pierced support at November 25-26 low around $1.2820/30 ( also 50% of $1.2565 to $1.3080, 38.2% of $1.2430 to $1.3080 move and a neck-line of a "head and shoulders" pattern) euro trades with the heavy tone. Break under the 21-day moving average currently at $1.2736 adds pressure on the pare wich currently targets the last week's low around $1.2565. The sustained break below key support $1.2440/30 wedge base favours slide to October 27 and 28 lows at $1.2330 ahead of $1.2260 (50% of a huge $0.8560-$1.6030 move).

Closest resistance is seen at $1.2960. Daily Bollinger band top at $1.3080 and November 5 peak at $1.3110/25 provide solid resistance ahead of the key level at $1.3295/00 (61.8% decline from $1.4865 and October 30 high).

Oct Retail Sales Real -1.5% y/y

The Nikkei 225 was down 115.05 points, or 1.35%, a 8397.22. The broader-based TOPIX was lower by 8.21 points, or 0.98%, at 8397.22. Volume in the Nikkei constituents totalled 1.069 billion shares, with 165 issues lowe, 53 higher and 7 unchanged.

High Low Close
EUR/USD 1.2956 1.2641 1.2705
USD/JPY 95.73 94.10 95.66
GBP/USD 1.5447 1.5256 1.5413
USD/CHF 1.2198 1.1957 1.2130

EUR/JPY 123.43 120.44 121.54
EUR/GBP 0.8399 0.8229 0.8240
GBP/JPY 147.57 145.53 147.44
GBP/CHF 1.8714 1.8422 1.8696

Change % Change Last
Nikkei +138.88 +1.7% 8,512.27
Topix +5.79 +0.7% 834.82
FTSE +61.91 +1.46% 4,288.01
DAX +4.17 +0.09% 4,669.44
CAC +12.29 +0.38% 3,240.44
Dow +102.43 +1.16% 8,829.04
NASDAQ +3.47 +0.23% 1,535.57
S&P +8.56 +0.96% 896.24
10yr Note -0.4400 -0.147% 2.957%
NYMEX Crude Oil -0.01 -0.02% 54.43
Gold +7.70 +0.94% 819.00

07:00 Germany Wholesale sales (Okt), Y/Y 7,5%
07:00 Germany Wholesale sales (Okt) 0,5%
08:55 Germany PMI (November) 36,7 42,9
09:00 Е15 PMI (November) 36,2 41,1
09:30 UK Consumer credit (October), bln +0.5 +0.3
09:30 UK M4 lending (October) final, bln +2.3 +2.3
09:30 UK M4 money supply (October) final Y/Y 15.1% 15.1%
09:30 UK M4 money supply (October) final 2.3% 2.3%
09:30 UK CIPS manufacturing index (November) 39.3 41.5
13:30 Canada Gross Domestic Product Annualized (QoQ) (Oct) 0,7% 0,3%
13:30 Canada Gross Domestic Product (MoM) (Oct) -0,3%
15:00 USA Construction spending (October) -0.8% -0.3%
15:00 USA ISM Mfg business index (November) 38,2 38,9
18:30 USA Fed's Bernanke Speech