Forex Flash: Obama moves to avert fiscal cliff – Deutsche Bank (Barcelona) - In the US, the fiscal cliff looks set to return to the headlines today as lawmakers return to DC for the first time post-election. The WSJ is reporting that Obama plans an aggressive public campaign to build broad support for his plan to tackle the fiscal cliff starting with a meeting with union leaders on Tuesday, and a number of business leaders on Wednesday.

According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “This is in an effort to solidify backing for his proposals ahead of meeting with congressional leaders on Friday. The rhetoric from Republican leaders has softened in recent days, with a number of Republicans conceding that increased tax revenues may be part of reducing the fiscal deficit.”

Briefly recapping yesterday's markets, the S&P 500 finished yesterday virtually unchanged (+0.01%) in very low volumes. Indeed with the bond market closed for Veterans Day, traded volumes were the lowest since the Christmas Eve of 2009 and also less than half of what we saw the year before.