The British pound has fallen to a 7-year low against the US dollar and a record low against the Japanese yen.

It looks to be a light week in the stock market, with a holiday, inauguration day, and no significant economic reports.

Deflation? Stimulus? Deleveraging? Recession? A soft depression? A return to a bull market? With all that is going on, how does it all end up?

The American people want someone to tell them that the recession under control.

The US stock markets were closed on Monday for the Martin Luther King, Jr. holiday, but that doesn’t mean that risk aversion couldn’t feed through from Europe into US trading.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for January 20.

The current chart pattern is not good news for the short-term bullish case.

How much faith do you have in the federal government?

The US dollar finished the week broadly higher against major forex counterparts, as flare-ups in financial market tensions led to aggressive buying of the safe-haven US currency.

The euro ended the week mixed across the majors, as the currency slipped against the US dollar, Japanese yen, and Swiss franc but rose versus the British pound and commodity dollars.