Good Morning ,

- Euro Rises Above $1.3500, Highest Since Nov 2011 .

- Euro Rose yesterday above $1.34880, highest since December 2011…Also, Crude Oil and Gold Rose as well, as US Dollar Weakened before FOMC meeting. Basically, all commodity prices are pushing higher on the back of broad US Dollar weakness as the Fed begins its two-day policy meeting, with dovish commentary expected.

-Yesterday’s majors versus USD: EUR +0.28%; JPY +0.08%; GBP +0.42%.

- The Australian dollar is currently pricing in a 27% probability that the RBA will cut rate by 25bp in their next meeting in Feb 5. Also, Australian Stocks Head for Longest Win Streak Since 2003. Australian stocks rose, with the benchmark poised for its longest winning streak since 2003, as higher metals prices boosted mining companies. Japanese stock futures were little changed.

- European Stocks Advance to 23-Month High . European stocks rose to the highest level in more than 23 months as companies reported earnings and a report showed house prices in 20 U.S. cities increased. Royal Philips Electronics NV climbed 2.3 percent after the world’s largest lighting manufacturer reported fourth-quarter results that topped analyst estimates. William Hill Plc (WMH) gained 2.1 percent after the bookmaker reporter a jump sales. Anglo American Plc (AAL) led mining companies higher, rallying 3 percent.

- Remember the Yen Carry Trade? Well, It is back. As confidence returns to global markets, investors appear to be using the cheap yen once again to fund investments in risky assets – a trade that is likely to give the battered Japanese currency another boot lower in the months ahead, analysts said. The yen has lost 13 percent of its value against the U.S. dollar in the past three months, hitting a 2-1/2 year low on Monday on expectations of aggressive monetary policy from Japan, which under a new government is set on ending years of deflation and pushing its economy out of recession.

- Home Prices in U.S. Rise by Most in Six Years as Market Firms.. Home prices in 20 U.S. cities rose in November from a year earlier by the most in more than six years, indicating the U.S. housing rebound is gaining ground. The S&P/Case-Shiller index of property values increased 5.5 percent from November 2011, the biggest year-over-year gain since August 2006, a report showed today in New York.

- Bernanke Seen Buying $1.14 Trillion in Assets in 2014. Federal Reserve Chairman Ben S. Bernanke’s latest round of bond buying will reach $1.14 trillion before he ends the program in the first quarter of 2014, according to median estimates in a Bloomberg survey of economists.

-German Import prices in 2012: +2.1% on 2011

- Varga says Hungary rate cuts will help economy.

-Today market movers: USD GDP (4Q), USA FOMC rate decision, RBNZ rate decision .

-Have a nice day!