Philadelphia Fed Index -5.7

Lower than expected.  Lowest since April of 2003

Employment 0.5 versus 4.8 last

Prices Paid 35 versus 37.7 last

Prices Received 16.7 versus 18.6 last

New Orders 10.7 versus 3.5 last

Future (6 month) General Actvity Index 7.7 versus 11.6.  This is down sharply from a high of 41.5 in October. 

Philadelphia Fed Index is to be released at 12:00 ET

Expectations are for a 6.2 level for the Current General Activity Index versus 8.2 last month.  The low for 2007 was 0.0 in August 2007 and the high was 10.9 in September 2007.

Last months values for key indexes were the following:

New Orders 3.5 (low was -0.5 and high 18.3 for 2007)

Employment 4.8 (low was -0.4 and high was 21.2 for 2007)

Prices Paid 37.7  (low was 11.9 and high was 40.3 for 2007)

Prices Received 18.6 (low was 2.2 and high was 18.6 for 2007)

US Leading Indicators declined -0.4%

As per the Conference Board press release:

"The leading index decreased sharply for the second consecutive month in November, and it has been down in four of the last six months. Most of the leading indicators contributed negatively to the index in November, led by large declines in stock prices, initial claims for unemployment insurance (inverted), the index of consumer expectations, and real money supply (M2)*. The vendor performance diffusion index and average workweek were the primary positive contributors to the index this month. The leading index fell 1.2 percent (a decline of 2.3 percent annual rate) from May to November, the largest six-month decrease in the index in six years. However, despite continued weakness in the housing permits and interest rate spread components, the strengths among its components remained balanced with the weaknesses during the past six months. "

USDJPY under pressure now. Approaches the sideways support level

The USDJPY has been trading sideways over the last 4 plus days with the bottom being at 112.73 and the high at 113.58.

The pair is under pressure but approaches the support level.  A break of the 112.73 level should lead to stops.  A target level might be the 200 hour MA which is currently at 112.50 (but moving higher). 

EURGBP approaches the Dec 5 high

The EURGBP remains bid as GBPUSD continues to break support levels and probe lower.  The Dec 5 high was 0.7238.  A break above this level, will target the May 2003 high of 0.7256.

GBPUSD breaks through channel support

The GBPUSD did not hold channel support, breaking through the 1.9854 level, triggering stops.  This level will act as resistance now. 

Commercial Paper Outstanding declined by 54.7 billion

The declining trend in the Outstanding Commercial Paper has continued on the downside after some stabilization.  The amount outstanding is the lowest since 5 July 2006.

The decline in Commercial Paper Outstanding is an indication of deteriorating credit conditions as corporations once able to obtain funding through issuance of Commercial Paper cannot do so now.

The Total Commecial Paper Outstanding chart is below:

US Leading Indicatiors to be released at 10:00 ET

It is supposed to decline by -0.3%.  Last month it declined by -0.5%.  Contributing to the decline is Michigan Expectation Index, Stock Prices, Inital Caims and Building Permits.