Aggressive European Central Bank interest rate cuts and astounding job losses out of the US economy had surprisingly little effect on the euro.

If four major central bank interest rate cuts and a truly dismal US employment report were unable to break the yen out of its recent channel, it is unclear that anything on the coming week’s economic calendar will be enough to elicit strong reactions from weary forex speculators.

In a bear market, he who loses least wins.  But even he doesn’t feel like much of a winner – not when cash is outperforming him.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for November 7.

European currencies including the euro, British pound, and Swiss franc were hit hard on Thursday as three of the biggest central banks in the continent – the European Central Bank, the Bank of England, and Swiss National Bank – all slashed interest rates.

World markets had been recovering from October’s drubbing.  The Morgan Stanley index, which measures capital market performance around the globe, had risen 20% from last month’s lows.  But stocks keep selling off.

Even though the US economy has not officially entered a recession, the US labor market has.

A year ago, many economists and traders believed the US financial crisis would stay within the boarders of the world’s largest economy and other countries would be immune to the economic consequences. However, today’s side-by-side Bank of England and European Central Bank rate decisions have certainly banished any lingering skepticism that Europe was feeling the pinch of a broad recession and ongoing difficulty in the financial and credit markets.

The Bank of England cut rates by 150 bps ,surprising markets that were expecting a 50 bps reduction.

What does this signal for tomorrow's jobs report?