stocks

The US stocks have moved lower - now down nearly 200 points.  This has dragged down the EURUSD below intraday support at the 1.3619-1.3623 level.  Bernanke is to speak at 1;15 PM today. 

The market was appeased briefly by the Commercial Paper action today but the positive from the move has since faded away. 

All yen crosses getting hit.  Gold up. Stocks down.  Morgan Stanley and Goldman Sachs are being pressured.   FDIC Blair says they will raise premiums to banks for FDIC insurance in October.  Fed Funds trading at 3% - 100 basis points above the target level.  The TED spread has widened to the highest level since 1984.  Money is being redeemed from money marekt funds as they invest in commercial paper and issuers of commercial paper can fail.  The risks are increasing.   Cash is King. 

This should put some pressure on the dollar.  Expect continued volatility today. 

The initial reaction is a buy the dollar.  USDJPY and USDCHF benefitting.  EURUSD tests the 1.5407 intraday support area now.  Existing Home sales to be released shortly.

Despite the high oil, high silver, high gold, low dollar, the stocks remain supported.  AMBAC shares halted for News Pending.  They are apparently putting together a private placement for Rights offering.  The deal would be 2.5 Billion. 

The market is thinking this will be a savior for the problems, and so we are getting the effects in USDJPY and GBPJPY in particular. 

Short covering rally in JPY crosses.  GBPJPY testing upper end of trendline and 200 hour moving average on hourly chart (210.37 and 210.47).

Stock prices have moved to new lows late in the day as prospects of $100 per barrel begins to cast a pall over the positive move earlier in the day. 

The stock market seems to like the housing relief in the stimulus package.  The increase in the stock market is helping the USDJPY and the JPY crosses in particular. 

GBPJPY is trading at the highs for the day and looks like it might try to target higher levels. 

Dow down 320

Expect a weak opening.  Earnings disappointed along with warnings.  Apple down 12.2%  -18 points