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"December 16: economic events and data releases"(2011-12-16) Events: -Troika ends their 4-day visit to Greece. Important data: US CPI (1:30 p.m. GMT). Bond auctions: none (keep in mind, however, that France plans to sell 7 billion euro ($9.1 billion) of bills on December 19. Spain and Greece will also offer short-term government securities next week – these upcoming events weight on euro as the market seems pessimistic on the euro zone’s prospects). Elsewhere in the world: - The Reserve Bank of India announced measures to curb speculation in the foreign-exchange market (companies won’t be allowed to enter into multiple forward contracts to cover a single overseas transaction, the amount of open positions dealers can maintain overnight will be reduced). As a result, rupee climbed to more than 2 ½-year maximum. - Russia joins the World Trade Organization. The world’s biggest energy exporter is set to receive the final approval to join the WTO after 18 years of negotiations. Joining the WTO should drive bigger investment inflows, trade and higher competition. It may improve Russia’s credit rating. (14:30 GMT). Comment here http://www.fbs.com/analytics/news_markets/view/11457

"Danske Bank: forecast for ECB and Fed’s rates"(2011-12-16) Analysts at Danske Bank think that at its next meeting in January the European Central Bank will reduce its benchmark rate by 25 basis points to 0.75%. The specialists note that the euro area risks falling into recession during the next few months, the European policymakers still haven’t solved the crisis and the periphery bond yields remain high while the ECB is reluctant to extend its purchases of the European debt. Danske claims that the outlook for US economy seems to be much better and expect American GDP to show decent growth in the coming quarters. As a result, the Federal Reserve is seen keeping the rates unchanged with the prospect of increase as the economic conditions improve. So, make your conclusions. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/11450

"SNB meeting: results, comments, EUR/CHF"(2011-12-15) Swiss National Bank left today the left the floor for EUR/CHF at 1.20 and repeated to defend it will all efforts amid the pressure from the Swiss exporters to lift up this level (franc has been pegged to euro during already 3 months). The SNB has also left its key interest rate at 0%. The SNB’s President Philipp Hildebrand claimed that the central bank is ready to act in case deflation risks emerge, though today deflation isn’t yet a danger for the Swiss economy. According to the SNB’s forecast, consumer prices will fall by 0.3% the next year, but we won’t see sustained decline in the general price level. Swiss central bank expects the nation’s GDP growth to slow from 1.5-2% this year to 0.5% in 2012. Analysts’ comments Credit Agricole: the SNB is going to stay on hold watching the dynamic of the economic indicators. In other words, the central bank won’t raise the limit for franc preferring verbal interventions. The pressure on Swiss exporters has eased a bit as franc has so far weakened versus US dollar. Swissquote Bank, Capital Economics: as the situation in the euro area may deteriorate, the upward pressure on franc risks strengthening. Goldman Sachs: the SNB is in a very difficult position due to the low inflation and poor economic growth. Rabobank: the central bank is still likely to increase EUR/CHF floor. Swiss economy is affected by slowing economic growth of the euro area. Franc is overvalued and the deflation is at the door. The analysts advise buying euro on the dips. UniCredit: SNB's growth and inflation forecasts don’t change much. If the central bank lifts the EUR/CHF floor to 1.25, that won’t be enough to help the exporters. If the SNB raises the limit to 1.30, it will face strong market’s pressure as well as the accusations of currency manipulation. As a result, the analysts expect the floor to stay at the current level. Swiss franc is seen slowly depreciating in 2012. EUR/CHF Bloomberg survey: EUR/CHF will trade in the 1.23 area in the first quarter of 2012 and then rise to 1.26 in the last 3 months of the next year. Bayern LB: euro has upward potential against franc. If EUR/CHF manages to get above 1.2475, it will be able to climb to 1.26 even without any actions on the part of the SNB. Chart. Daily EUR/CHF Comment here http://www.fbs.com/analytics/news_markets/view/11447

"Nomura: EUR/USD is sliding to $1.20"(2011-12-15) Analysts at Nomura who have been bearish on euro this year still think that the single currency is going to weaken versus its US counterpart. The specialists note that if in the longer term it’s possible to see some light ahead, the short-term picture looks rather dim. According to the bank, EUR/USD will hit $1.20 by the end of the first quarter of 2012. Nomura says that the pace of euro’s decline will depend primarily on the results of the upcoming bond auctions in Europe and the 3-year ECB money tender which is launch on December 21. In addition, the strategists claim that one shouldn’t rule out the possibility of the pair’s drop to the parity level the next year. Chart. Weekly EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/11445

"Westpac, E&Y: Europe’s heading to recession"(2011-12-15) The majority of experts sound pessimistic on the prospects of the euro area's economic growth. Analysts at Westpac claim that the austerity measures will lead the region into a “fully blown recession”. Economists at Ernst & Young also believe that European economy’s going to contract and add that the actions of the EU authorities haven’t completely eliminated the risk of the euro area’s breakup. In their view, the currency union’s GDP will drop in the current and next quarters and the rebound will begin only by the end of the next year, while the 2012 growth won’t exceed 0.1% (in 2013 the situation might improve – the analysts project 1.5-2% growth). The unemployment level is seen above 10% until 2015. E&Y reminds that the next year the large amounts of sovereign debt will require refinancing. As a result, the debt turmoil is likely to continue and the ECB will likely have to consider acting as a lender of last resort and keep buying government bonds. Comment here http://www.fbs.com/analytics/news_markets/view/11443

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"FOMC: results of the meeting and analysts' comments"(2011-12-14) FOMC (Federal Open Market Committee) repeated its pledge to keep the interest rates at the minimal level near zero at least until the middle of 2013 and maintained Operation Twist, the operation which allows the central bank to lengthen the maturity of Treasuries in its $400 billion portfolio. Note that Chicago Fed President Charles Evans once again called for additional easing. The Fed’s Chairman Ben Bernanke claimed that the European debt crisis may affect US economy, so that further monetary stimulus measures will be needed. Despite the fact that the unemployment level unexpectedly dropped in November to the minimal level since March 2009 of 8.6%, the FOMC said that this number is still “elevated” and that the jobless rate will decline “only gradually”. Although some recent data was quite positive (CB consumer confidence, ISM Manufacturing PMI), the Fed underlined that the pace of business fixed investment growth is still low and housing market “remains depressed”. Analysts’ comments Analysts at BNP Paribas expect that the central bank could unveil measures aimed to support growth and improve the public understanding of Fed’s policy already at the next meeting on January 25-26. In their view, the Federal Reserve will launch QE3 in the second quarter or even earlier, in January or March, in case economic conditions worsen. The specialists also expect the central bank to publish their forecasts for the federal funds rate and define the levels of economic growth and unemployment which would allow it to tighten monetary policy. Strategists at ING also point out that due to the annual rotation the hawks – Federal Reserve presidents Charles Plosser of Philadelphia, Richard Fisher of Dallas, and Narayana Kocherlakota of Minneapolis – and their place will be taken by the doves – San Francisco Fed President John Williams, Atlanta Fed President Dennis Lockhart and Cleveland Fed President Sandra Pianalto. Some analysts think that the Fed is already conducting QE (that explains low yields of the Treasuries) without announcing that officially. At the same time, economists at UBS, Barclays, Citigroup, Deutsche Bank и JP Morgan Chase believe that the central bank will be buying only mortgage bonds. Anyway the Fed’s decision will likely be based on the inflationary expectations and the fact that last month the inflation forecasts were lowered speaks in favor of the potential QE. Pay attention to the fact that Bernanke will hold press conference on January 26 after the meeting, an event that occurs quite rarely. Comment here http://www.fbs.com/analytics/news_markets/view/11435

"BoA: sell Aussie versus loonie"(2011-12-14) Analysts at Bank of America Merrill Lynch advise traders to sell Australian dollar against its Canadian counterpart. In their view, AUD will weaken as the prospects of Australian currency for the next few weeks seem rather dim: - Shanghai Composite Index has breached important support levels (Aussie is extremely vulnerable to the deterioration of the economic situation in China as the latter is Australian key trading partner). - Continuous Commodity Index has also dropped below key support (commodities represent the key part of the Australian economy, so AUD will likely suffer). The specialists propose to sell Aussie versus loonie because though Canadian dollar is also a commodity currency, it’s not affected by the dynamic of commodity prices as Australian dollar is. Moreover, AUD/CAD is facing the long-term resistance level which has been in place since the 1980s. According to the bank, it’s necessary to open shorts on the pair at 1.0440 stopping above 1.0660 and targeting 0.9840. Chart. Daily AUD/CAD Comment here http://www.fbs.com/analytics/news_markets/view/11433

"Commerzbank: technical comments for the majors"(2011-12-14) EUR/USD: the pair went below the October 4 minimum at $1.3145, the next downside target lies at $1.2860 (2011 minimum) and at $1.20 in the longer term. The key resistance is situated at $1.3355. Chart. Daily EUR/USD USD/JPY: the pair recovered from support in the 77.11/21 area (55- and 100-day MA). Resistance is found in the 78.28/30 zone (last week maximum and 8-month resistance line), 78.66 (4-year downtrend resistance line) and 80.12 (55-week MA). Chart. Daily USD/JPY USD/CHF: the pair reached the maximal levels in 10 months and managed to rise above 0.9399 (50% Fibonacci retracement of the decline in 2010-2011). If US dollar closes above 0.9400, it will be able to advance to 0.9776/84 (2011 maximum) and then to 0.9950 (61.8% Fibonacci retracement of the decline from 2010). Chart. Daily USD/CHF Comment here http://www.fbs.com/analytics/news_markets/view/11431

"Westpac: advices on trading euro"(2011-12-14) Analysts at Westpac believe that the single currency is on the way down to $1.2860. In their view, euro will weaken versus US dollar due to the risk that the rating agencies downgrade European nations and high probability of the region’s falling into recession. At the same time, the specialists underline that there are now too many short positions on euro, so they don’t recommend selling euro at the current levels. According to the bank, it’s necessary to wait for a short squeeze back toward $1.3400 before going short on EUR/USD. In addition, Westpac advised selling Australian dollar against its New Zealand’s counterpart as the Reserve Bank of Australia is more likely to reduce the interest rates. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/11429

"JPMorgan Chase: euro may renew 2011 low"(2011-12-14) The single currency fell versus the greenback diving below October minimums to the levels in the $1.3010 area. Technical analysts at JPMorgan Chase claim that EUR/USD breached important support at $1.3047 (61.8% Fibonacci retracement from a 4-year minimum reached in June 2010) and may retest 2011 low at $1.2873 hit on January 10. In their view, the pair’s trading within downtrend and the outlook for euro will remain negative as long as it stays below $1.3145/3212. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/11427

999: Results of the contest 3 weeks!!! Dear traders! 3 weeks ago our regular contest “999” started. More and more traders from all over the world take part in the contest each time. Today 1781 traders are participating in “999”. Dynamic trading, constant reshuffle in the list of contestants, active struggle for the prizes (555 USD, 333 USD, 111 USD for the 1st, 2nd and 3rd places, respectively) and bright triumph are the main components of “999” Contest. Currently, there are three leading contestants: a trader from Ukraine (account number – 210836, balance – 422209.24 USD), a trader from China (account number – 210782, balance – 368387.82 USD) and a trader from Ukraine (account number 207815, balance – 281917.52 USD). Note that “999” finishes on 23.12.11 and all contestants have the real chance to win. Good Luck! List of contestants: http://www.fbs.com/contest/999/participants?type=cur Contest details: http://www.fbs.com/contest/999 Discuss 999 on forum: http://forumfortrader.com/showthread.php?t=10797 FBS wishes you Finance,Freedom and Success in trading! (Best mini Forex Broker of 2010 - 2011) Stay connected with FBS because its all about you!

"Mizuho: short-term recommendations for majors"(2011-12-13) EUR/USD (bullish, target $1.3525, stop below $1.3135) Resistance: $1.3250, $1.3310 and $1.3360 Support: $1.3145 and $1.3055 Chart. H4 EUR/USD GBP/USD (bullish, target $1.5795, stop below $1.5495) Resistance: $1.5665, $1.5735 and $1.5770 Support: $1.5525 and $1.5465 Chart. H4 GBP/USD Comment here http://www.fbs.com/analytics/news_markets/view/11417

"SocGen: technical levels for USD/JPY"(2011-12-13) Technical analysts at Societe Generale expect that the level of 77.15 yen will be able to support the greenback. The specialists note that for the pair USD/JPY could experience growth in the medium term, it should overcome resistance in the 78.30/55 yen area. Chart. Daily USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/11415

"UBS: forecasts on the Fed, the SNB and the ECB will act"(2011-12-13) Analysts at UBS believe that the Federal Reserve won’t announce the third round of quantitative easing at today’s meeting as the nation’s economic data has so far been rather strong. In their view, the Fed may reduce its discount rate and reinstate the Term Discount Window Facility in order to increase liquidity available to US banks. The specialists think that the Swiss National Bank will raise the floor for EUR/CHF from the current level of 1.20 to 1.25 as Swiss CPI declined for 2 months and the nation’s monetary authorities will try to diminish the risks of prolonged deflation. As for Europe, the UBS economists think that the European Central Bank will cut its benchmark interest rate by another 25 bps at its next meeting on January 12 and then once again on March 8. As a result, the borrowing costs in the euro area will slide from the current level of 1% to 0.5%. The strategists don’t rule out the possibility that the central bank will lower rated to 0.5% even earlier and that the ECB could be forced to consider such option as the quantitative easing. UBS underlines that the European economy will be under pressure from austerity measures and debt problems, so the ECB will probably be able to justify bond purchases by its mandate of maintaining price stability rather denying potential accusations in deliberate monetizing of the European debt. Comment here http://www.fbs.com/analytics/news_markets/view/11413

"Citigroup, BoA: expectations ahead of SNB meeting"(2011-12-13) The Swiss National Bank meets on Thursday, December 15. The Libor rate is released at 8:30 a.m. GMT and is followed by the central bank’s press conference. The market’s widely expecting the SNB to do something to weaken franc as the officials have expressed concerns about the strength of the national currency. Currency strategists at Citigroup note that the leveraged funds turned short on franc for the first time in 13 months. Analysts at Bank of America Merrill Lynch claim that the market is estimating the possibility of the SNB raising floor for EUR/CHF from 1.20 to 1.25 by 25%. Some traders even talk about the floor raised to 1.30. The specialists say that for further hints about Swiss monetary policy one should analyze the micro survey of Swiss business that appears in the bank's quarterly bulletin (the one for the fourth quarter is released on December 23, the previous are available here). According to Merrill Lynch, the survey deterioration in September triggered the SNB’s intervention as well as verbal interventions in January and December 2010. Comment here http://www.fbs.com/analytics/news_markets/view/11411

"S&P comments on the situation in the euro area"(2011-12-13) Reuters cites the comments of Standard & Poor's chief economist on the situation in the euro area made yesterday: «There is probably yet another shock required before everybody in the euro zone reads from the same page, for instance a major German bank experiencing some real difficulties on the markets, which is a genuine possibility in the near term». According to S&P, EU summit agreement was a significant step forward, but not enough. Last week the ratings agency put 15 European nations on watch for potential downgrade. It usually takes the agency about 3 months to act after a warning. The agency said, however, that this time it may make the decision more quickly. S&P intends to urge the European authorities to solve the crisis as the next year the region is facing significant risk of recession and credit crunch. Analysts at Commerzbank claim that though much of the potential negative outcome has already been priced in, the downgrade by S&P would seriously hit the markets. Comment here http://www.fbs.com/analytics/news_markets/view/11409

Current update of Demo 999 Contest!!! For the whole week “999” contestants have been struggling for the leadership in the competition and prizes – 555 USD, 333 USD, 111 USD and FBS MasterCard as an encouraging prize. This time participants need to be more attentive and active: record number of 1781 traders from all over the world has already joined the contest, and this number grows with each month! As of today, here are the results: So the leader so far is a contestant from , Ukraine account number 210836 (balance: 407709.24 USD), 2nd place is taken by a contestant from China, account number 210782 (balance: 342387.82 USD) and in the 3rd place there is a contestant from Ukraine, account number 207815 (balance: 252389.82 USD). Account#210836 Position: 1st Country: Ukraine Balance: 407709.24 USD Account#210782 Position: 2nd Country: China Balance: 342387.82 USD Account#207815 Position: 3rd Country: Ukraine Balance: 252389.82 USD Check other contestants ranking Go to the scoreboard: http://www.fbs.com/contest/999/participants?type=cur We are expecting a dynamic and exciting competition with a lot of surprises ahead. We wish good luck to all the participants! FBS wishes you Finance,Freedom and Success in trading! (Best mini Forex Broker of 2010 - 2011) Stay connected with FBS because its all about you!

"Nomura, RBS: China will keep easing policy"(2011-12-12) The economic data released today in China were mostly lower than expected. The nation’s industrial production contracted from 13.2% in October to 12.4% in November (y/y). Analysts at Nomura expect Chinese GDP growth will slow down from 9.1% in the third quarter of 2011 to 7.5% in the first 3 months of the next year. The specialists say that the country’s economy is rapidly weakening as its exports suffer from the reduced demand overseas and the property market is cooling. In their view, lower inflation (annual CPI growth dropped from 5.5% in October to 4.2% in November) would allow the nation’s monetary authorities to conduct further monetary easing. The bank expects the People’s Bank of China to cut reserve requirements rate in January. Analysts at Royal Bank of Canada claim that as Beijing claimed that it will maintain its “prudent” monetary policy stance, the policymakers will adjust the policy in the form of RRR cuts rather than a cut in benchmark policy rates or a shift to currency depreciation. Comment here http://www.fbs.com/analytics/news_markets/view/11388

Happy Weekend from entire FBS team!!! FBS wishes you Finance,Freedom and Success in trading! (Best mini Forex Broker of 2010 - 2011) Stay connected with FBS because its all about you!

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"Bank of England stays on hold"(2011-12-08) The Bank of England decided to leave its benchmark rate unchanged at 0.5% and its assets purchase program at 275 billion pounds. Many economists expect the BoE to extend the amount of asset purchases in February when the 75-billion-pound purchase announced in October is over. UK economy is in a very poor state – according to the OECD (Organization or Economic Cooperation and Development), the nation has already entered mild recession. British central bank projects that inflation – the main obstacle for QE – will drop from the current levels close to the 3-year maximum of 5% below the 2% target level. The pair GBP/USD is trading on the upside but very close to the opening level. Chart. H4 GBP/USD Comment here http://www.fbs.com/analytics/news_markets/view/11378

"Bank of England stays on hold"(2011-12-08) The Bank of England decided to leave its benchmark rate unchanged at 0.5% and its assets purchase program at 275 billion pounds. Many economists expect the BoE to extend the amount of asset purchases in February when the 75-billion-pound purchase announced in October is over. UK economy is in a very poor state – according to the OECD (Organization or Economic Cooperation and Development), the nation has already entered mild recession. British central bank projects that inflation – the main obstacle for QE – will drop from the current levels close to the 3-year maximum of 5% below the 2% target level. The pair GBP/USD is trading on the upside but very close to the opening level. Chart. H4 GBP/USD Comment here http://www.fbs.com/analytics/news_markets/view/11378