Forex Market Updates & Commentary

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• Next FXDD Webinar Thursday May 13 4pm
• Forex Morning Report - May 12
• Gold makes new highs overnight. Tops at 1244.85
• Trade Balance Same as Expectations
• Trade Balance Data Due at 8:30am
• Rebroadcast of Tuesday’s Webinar, May 11 2010
• Bobbys Corner-Open Market-May.12.2010
• BoE King comments on U.K. growth, or lack there of
• Eurozone Flash GDP & Industrial Production
• Eur/Usd approaching 100 hour M/A
• U.K. Unemployment Data
• Sterling rises near 200 hour M/A
• Swiss PPI
• French Preliminary GDP
• Preliminary German GDP

Next FXDD Webinar Thursday May 13 4pm Posted: 12 May 2010 06:31 AM PDT Join us for our next Webinar with Greg Michalowski and Shawn Powell on Thursday May 13th at 4pm >>Register Here

Forex Morning Report - May 12 Posted: 12 May 2010 06:30 AM PDT Forex Morning Report - May 12

Gold makes new highs overnight. Tops at 1244.85 Posted: 12 May 2010 05:41 AM PDT Gold made new highs overnight, topping out at 1244.85 as traders took profits slowing the run up; causing the XAU/USD pair to retrace slightly. This is the highest price for gold ever and there are no signs that it will let up on its rise. Key levels to watch for on the downside if the retracement continues are the 38.2% Fibonacci level at 1211.08 and the 100H MA (blue line) below that at 1206.86. Also look for the possibility of a quick bounce off of trendline support near 1233.

Trade Balance Same as Expectations Posted: 12 May 2010 05:31 AM PDT Trade Balance:   Survey:-40.5B    Actual:- 40.4   Prior:-39.7B    Revised:- 39.7

Trade Balance Data Due at 8:30am Posted: 12 May 2010 05:10 AM PDT

Rebroadcast of Tuesday’s Webinar, May 11 2010 Posted: 12 May 2010 04:55 AM PDT Click the banner to watch the rebroadcast of Tuesday’s Webinar. Or click here

Bobbys Corner-Open Market-May.12.2010 Posted: 12 May 2010 04:47 AM PDT Good Morning:  The GBP  traded lower, as the BOE stated that risks to the UK economic recovery have increased.  The new UK coalition lead by David Cameron has renewed pressure to tackle  the UK’s deficit problem, and speculation  mounts  that the new coalition will struggle to pass legislation to cut its budget deficit. In  Euro Zone news, the Spanish government caved in to pressure from the EU to reduce their spending., and cut public wages 5%.  Spanish government members will take up to a 15% cut in wages as Spain desperately tries to reduce their deficit.  As investors sort out the details of the $1 trillion loan package pledged the other day, the marketplace is realizing that the package will not solve the root of the sovereign debt issues without major concessions by the countries involved. Asian equity markets were mixed, European markets are higher, and US Futures are pointing to a higher opening this morning. Commodities are higher in general. Oil:$76.09                                               Gold:$1241.90 Today’s Data: 8:30A.M. TRADE BALANCE  MARCH -$40.5B -$39.7B 2:00P.M. MONTHLY BUDGET STATEMENT APRIL -$45.3B -$20.9B HAVE A GREAT DAY & GOOD LUCK

BoE King comments on U.K. growth, or lack there of Posted: 12 May 2010 02:37 AM PDT BoE King says downside U.K. growth risks have increased somewhat and budget cuts may need to be more demanding. It is imperative to tackle fiscal problems sooner than later. GBP has lost most of its session gains on King’s commentary of U.K economy. Gbp/Usd off about 80 points to 1.4920, Eur/Gbp up 50 points to .8510 and Gbp/Jpy of 60 points to 138.45.

Eurozone Flash GDP & Industrial Production Posted: 12 May 2010 02:05 AM PDT Eurozone Flash GDP q/q came in at 0.2%, stronger than the 0.1% expected and prior reading of 0.0%. Industrial Production m/m came in at 1.3%, stronger than the 1.1% expected and prior reading of 0.7%. Strong numbers for the Euro but again seemingly built in to pricing as the currency has given back gains across the board. Eur/Usd currently trades at 1.2706, Eur/Jpy at 118.05 and Eur/Gbp at .8458.

Eur/Usd approaching 100 hour M/A Posted: 12 May 2010 01:56 AM PDT Eur/Usd has shown some strength in recent hours and is now testing the 61.8% of move up from May 6 to May 10 (1.2521 & 1.3094). Its 100 hour M/A is lurking just above at 1.2752. This may be where Euro losses some steam as resistance seems to be set in place. If so 1.2670 may act as support to the downside.

U.K. Unemployment Data Posted: 12 May 2010 01:35 AM PDT U.K. Claimant Count Rate came in at 4.7%, better than the 4.8% expected. Jobless Claims  Change came in at-27,100, better than the -20,000 expected. ILO Unemployment rate remains at 8.0%. All in all good numbers for the pound though seemingly built in to pricing of the currency. Gbp/Usd ran up to new highs just prior to release of data and has since given back 30 points of gains to 1.5000.

Sterling rises near 200 hour M/A Posted: 12 May 2010 01:26 AM PDT Gbp/Usd is flirting with its 200 hour M/A (1.5044) just prior to the release of the U.K. monthly Claimant Count. This level should provide strong resistance, however strong data out of the U.K. may propel the pair clear through. A good base for the pair is the 100 hour M/A of 1.4873.

Swiss PPI Posted: 12 May 2010 12:20 AM PDT Swiss PPI m/m came in at 0.6%, stronger than the 0.4% expected and prior reading of 0.5%. Usd/Chf is off about 10 points to 1.1105 on the strong CHF news.

French Preliminary GDP Posted: 11 May 2010 11:48 PM PDT French Preliminary GDP q/q came in at 0.1%, weaker than the 0.3% expected and prior reading of 0.6%. Eur/Usd off 10 points on release to 1.2640.

Preliminary German GDP Posted: 11 May 2010 11:02 PM PDT Preliminary German GDP q/q came in at 0.2%, stronger than the 0.0% expected. The prior reading of 0.0% was revised to 0.2%. Strong number for the Euro, but we are not seeing much of a move to the upside as Eur/Usd trades at 1.2640. The pair is seemingly offered.

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