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Currency Trading Update

Shifts in the rankings of the currency trading portion of the Million Dollar Portfolio Challenge had more to do contestants losing money than anything else. This allowed contestant number 2 from Wednesday to reclaim the top spot by Thursday's close, even though he hasn't even traded anything and has simply maintained a portfolio balance of $1,104,676.02 since January 16. Meanwhile, Thursday's contestant number 2 is finding that his position in the rankings depends on where the Japanese yen crosses go next, as he still has three long GBP/JPY trades open with floating profits of over $160,000.

Event risk will be light at the start of next week:
Asian Trading Session
*No key indicators due to be released.

European Trading Session
*No key indicators due to be released.

US Trading Session
01/26, 10:00 ET
US Leading Indicators, Existing Home Sales (DEC) - The Conference Board's US leading indicator index is forecasted to remain flat or negative for the seventh straight month in December, as the index may contract by 0.3 percent. Past releases show that rising jobless claims, plunging building permits, deteriorating consumer confidence, and falling stock prices have weighed heavily on the index, and that may not change much in this updated release. Meanwhile, the National Association of Realtors' (NAR) existing home sales report is expected show that they fell by 2 percent in December to a record low of 4.40 million from 4.49 million. Record keeping only goes back to 1999, so the extent of the weakness of in the housing sector may not even be reflected in this particular release. Instead, yesterday's announcement of the plunge in housing starts during December to the lowest levels since the Commerce Department's records began in 1959 may provide a more accurate description of conditions.

Terri Belkas
Currency Strategist
Forex Capital Markets LLC

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