Forex Trading: Stocks turn higher. Crosses find a little bid.

Dow up now. Seeing some bid in crosses although still depressed. Given the huge wash out, the upside does not really get serious until the 196.66 area. This would be a target first level Then the 1.9844 (38.2% retracement). Otherwise the trend is still to the downside and the moves are simply random walks in response to stock markets ups and downs.

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Forex Trading: GBPUSD testing 2.0000. EURUSD ignores the ECB comments

The EURUSD remains supported despite the ECB source comments. It seems the market wants to here the Treasury Secretary see it and if the ECB is worried about their currency rate, they should make overtures about cutting their rates.

Forex News: Treasury Secretary Paulson on CNBC

Says the US has a strong dollar policy. The long term fundamentals of the US economy are strong and the US currency will eventually reflect that.

Forex News: NAHB Housing Index Sentiment comes in at 20

As expected but at historic lows.

The index in December reached 18, the lowest since it was first published in January 1985.
Levels under 50 mean most respondents view conditions as poor. The glut of housing continues to drag the home market down. Until buyer reemerge, the industry will remain in the duldrums.