European Session − CAD Under Pressure

Once again non farm payroll providedthe market with plenty of fireworks. The surprisingly weak NFA figure dropped to -17k vs. 70k revised prior 82k reading. While the reading in itself doesn’t decisively say recession the odds that the US is slipping in that direction are favoring this scenario. Perhaps the Fed's aggressive 125bp cut over 8 days seems to have been on the mark. After the health ADP survey the market had begun to speculate that the figure would be better then expected clearly this was not the case.

In general the Fx markets shifted lock in step selling the Usd with the one expectation of the Gbp which went the opposite direction. Market recognized that a major slowdown in the US will have significant spillover/shadow effect in the UK. GbpUsd had been under pressure all day but traded down to 1.9764 on the US release.

Market will be eagerly anticipating this afternoon ISM and U. Michigan survey. We should expect another high volatile release.

Global Indexes	Current Level	% Change
FTSE 100 Index	5,984.10	+ 1.77
CAC 40 Index	4,951.67	+ 1.68
DAX Index	6,939.06	+ 1.27
SMI Index	7,782.94	+ 1.46
DJIA Index	12,617.52	- 0.26
S&P 500 Index	1,377.01	- 0.11
NASDAQ 100 Index	2,392.52	+ 0.11

World Markets	Current Level	% Change
Gold	928.25	+ 0.24
Silver	17.14	+ 1.30
VIX	26.20	- 5.11
Crude wti	90.86	- 0.97
USD Index	75.04	- 0.18

Todays Calender	Estimates	Previous	Country / GMT
Univ. of Michigan Cons. Conf. Index (Jan Final)	79.0	80.5p	US / 15:00
ISM Manufacturing Index (Jan)	47.3	48.4	US / 15:00
Construction Spending	-0.5%	0.1%	US / 15:00

Currency Tech

USDJPY
R 3: 114.00 P
R 2: 110.10 S
R 1: 107.89 M
CURRENT 106.16
S 1: 105.85 S
S 2: 104.97 M
S 3: 104.20 T

GBPUSD
R 3: 2.0245 S
R 2: 2.0100 S
R 1: 1.9985 M
CURRENT 1.9860
S 1: 1.9765 M
S 2: 1.9560 M
S 3: 1.9177 S

EURUSD
R 3: 1.5000 K
R 2: 1.4967 S
R 1: 1.4907 M
CURRENT 1.4867
S 1: 1.4600 P
S 2: 1.4366 T
S 3: 1.4280 S

S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot