Is it the end of the world or just cliff off?

<p>There will be no further updates on the City Index site until Wednesday, January 2, 2013. So I guess as I’m writing this today the […]</p>

There will be no further updates on the City Index site until Wednesday, January 2, 2013.

So I guess as I’m writing this today the Mayans must have been wrong as this isn’t the end of the world but it does feel like the end of a satisfactory conclusion to the fiscal cliff for 2012 as events took a turn for the worst overnight.  Boehner scrapped the vote on his plan B conceding he didn’t have enough support from his own party – this coming just 24 hours after being so confident it would be passed.

Boehner has now asked President Obama and Senator Reid to put forward a plan that will satisfy the Republicans but if raising taxes on $1 million salaries couldn’t appease them, then for me a conclusion to the fiscal cliff isn’t going to come in 2012.

The market is lacking liquidity with many investors already on the sidelines until 2013 so every news headline is getting exaggerated. Today’s data highlights will be Italian consumer sentiment, Spanish  trade balance, Norwegian unemployment, UK GDP & UK current account this morning with the US session bringing us durable goods orders, personal spending and the University of Michigan consumer sentiment along with Canadian GDP and CPI.

 


EUR/USD

Supports 1.3180-1.3150-1.3080 | Resistance 1.3285-1.3390-1.3485


USD/JPY

Supports 83.60-83.30-82.80 | Resistance 84.50-84.90-85.30


GBP/USD

Supports 1.6230-1.6215-1.6170 | Resistance 1.6315-1.6375-1.6450

 

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