Market News
December 31, 2012 @ 10:28 am

Fiscal cliff looms as end of year deadline approaches

Markets are cautious and mostly quiet on the last day of the year.  There is alot of uncertainty due to the political deadlock in Washington DC as the fiscal cliff looms.

More than $600 billion of automatic tax increases and spending cuts are scheduled to take effect on January 1st 2013, and risk pushing the US economy back into recession. At the moment there are still significant differences between Democrats and Republicans in the budget talks and there is concern that there will not be an immediate resolution.

The Senate will resume its session today at 11 a.m. Washington time and there may be further announcements then.

If there is no progress in talks, there will probably be a chaotic day on January 2nd when markets open and the risk currencies like euro will be sold off.

Dollar has been firm due to safe haven flows. The dollar advanced 0.2 percent to $1.3185 per euro at 8:26 a.m. London time today after gaining 0.2 percent on Dec. 28. The greenback appreciated 0.1 percent to 86.08 yen.

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One Response to “Fiscal cliff looms as end of year deadline approaches”

  1. Santiago Says:

    trading is like a university edtcouian, it requires on the order of 10 to 20 years to become proficient and you have to be ready to accept it as a full time career. With that said, the broker that I use is oanda. I use this broker mainly because it allows smaller lot sizes which allows me to be very flexible with my exposure.My recommendation- do not trade with less than 50k account. Do not trade live until you have risk capital (money that you will not need or regret losing) or minimum few years on paper accounts. research is a huge topic. Do not fall for technical analysis, it works in some situations, but the best bet would be to read the prices correctly via price patterns and timing. Do not trade during non farm payrolls or during tokyo and NY lunch hour. Trade during the overlap of US UK sessions for best liquidity. Watch for inflation levels, what central bankers say (and if what they are saying is just a warning or if they are serious about it).For example you would want to monitor the japanese central bank decisions right now because their is strong enough to make their bank sell it to lower the price to keep exports competitive. For CAD, watch for gold prices (oil is their major export). ect.FINALLY: the only way to make money in safely is with law of large numbers in terms of capitalization. You have to have an account upwards of 50 mil, so this is not a get rich quick thing. The real money lies in market making and dealing.

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