Futures slightly higher ahead of the open U.S. equity futures are slightly higher in early trading. There is little for investors to key in on other than the fiscal cliff crisis. The President cut short his vacation in order to resume working on the budget impasse, and Congress will be back tomorrow. The lone meaningful economic number scheduled to be released today is the Case/Shiller home price report. Analysts are predicting that prices rose 0.48% in October.
FX Action: USD-JPY extended to a low of 120.00 FX Action: USD-JPY extended to a low of 120.00, the lowest level traded since last Thursday and over 1% down on Friday's peak. The yen's gain is correlate with a decline in European and Japanese stock markets today, though Chinese and Australian managed to post gains, despite weak industrial profits data in the case of the former. BoJ Governor Kuroda said today that the central bank will continue easing until CPI reaches the 2% target, but to scant market impact as this is a line which has perhaps become too boilerplate (unless it suits the trend). The path of USD-JPY continues to conform to the oscillation-around-120.0 pattern that's been persisting for just over a month. Bloomberg surveys show that 40% of economists are anticipating the BoJ to announce and expansion of its QQE program at its Oct-30 policy meeting.