Now that we are in the midst of a huge, worldwide credit boom, what are its prominent features?

Todd Gordon is looking to place bids to get long tonight between 168.30 and 168.05, with stops around 167.85.

New highs have become a regular daily occurrence in both the currency market and stock market.

Wednesday represents a huge day of event risk for US asset markets, as traders will face not only critical inflation data, but also Federal Reserve Chairman Ben Bernanke’s testimony before the House panel regarding monetary policy.

The Chinese yuan gained for another session against the US dollar, falling against the pound and euro, as speculation loomed over the possibility of a flexible currency regime in the near future.

The US Dollar continued near multi-decade lows on a trade-weighted basis, with the morning’s Producer Price Index and Treasury Inflow Capital reports doing little to boost the currency.

This Wednesday, Fed Chairman Ben Bernanke will give his semiannual testimony on monetary policy to the House.

Currency technical analyst Jamie Saettele analyzes the Japanese yen against the Canadian dollar, Swiss franc, and New Zealand dollar.

A rally through 122.08 would indicate that a wave 3 up is underway, which should be powerful.

Yet another night of fresh 26-year highs for the pound as UK inflation gauges surprised to the upside with CPI core reading hitting 2.0%. With core CPI reaching its highest level in 10 years, the news will only serve to stiffen BoE’s already hawkish posture as UK monetary officials make every effort to contain persistent price pressures in the system.