Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for January 26.

Price Headley explains seven key insights for disciplined trading.

Although the British pound has been in decline since the turbulent markets of last fall, this latest freefall carries a whiff of true panic.

The market will have to make a critical decision on the primary fundamental function of the US dollar within the next few weeks; and the ultimate verdict could finally put the world’s reserve currency back on pace.  Bringing the greenback one giant step closer to a definable trend in the week ahead are two key drivers: risk sentiment and economic activity.

Flare-ups in financial market tensions and well-publicized sovereign debt downgrades of three European Monetary Union member countries were the primary drivers of euro losses.

As usual, the Japanese yen traded in line with shifts in risk appetite over the course of the past week, with widespread losses in the stock markets helping to boost the currency.  These correlations are likely to hold in the near-term, while fundamentals shouldn’t play much of a role.

How bleak is the outlook?

Mothers no longer want their children to grow up to be investment bankers.

The Bank of Japan is either very serious about intervening in the currency market or it wants to keep currency traders on their toes.

Will risk appetite improve next week?