January 6, 2011 12:18 ET: EURO DEEPENS SELLOFF, partly onoverall USD strength but mainly on resurging Eurozone debt worries on1) Portugal's announcement to issue EUR 750 mln and EUR 1.25 bln in 2bonds maturities next week and 2) EUs pressing ahead with its plan tospread the burden of EU bank failures to senior bondholders ie haircutsand that no bank is too big to fail. The fact that the ECB is alsopushing for this idea (that bank bond holders should take a loss) issurprising because the central bank opposed the idea of sovereign bondholders taking haircuts. That is the reason to the 20-bp jump inPortuguese bond spreads to 4-week highs. EURUSD DEEPENS BREAK BELOW200-day MA eyeing 1.2978. I said on Monday EURUSD needed to close theweek above the $1.3460s ie the 55-week MA in order to invalidate thedowntrend. This has not happened and the bearishness remains and sodoes my prelim outlook for $1.27. Meanwhile, some pvt economists expectNFP tomorrow to exceed 300k, w/ some saying 450K. I will post my VideoMkt Analysis shortly. ****** SHORT AWARDS: If you would like to votefor me for this years SHORTYAWARDS, please go to the link http://shortyawards.com/ alaidiand fill in the sentence in the box stating the reason why you wouldnominate me. Please make sure you state a reason before you click Tweetyour vote. THANKS FOR YOUR SUPPORT. THANS TO YOU that last year Iplaced 4th out of +500 in the finance category. http://shortyawards.com/ alaidi
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