Forex Market Updates & Commentary

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• USDCAD tests parity. 0.9975 next key support
• President Obama on TV
• USDJPY tests support on bullish disappointment
• Forex Morning Report- Nov 5th
• Feds Hoenig on newswires
• US Pending Home Sales Data due at 10AM
• EURUSD moves lower on better jobs but corrects
• Canada Building Permits Way Up
• US Unemployment Better. USDJPY moves higher. Dollar higher
• US Employment awaited
• Bobbys Corner-Open Market-Nov.5.2010
• US Employment the focus now. Dollar strengthens on weaker EURO
• Canada Employment comes out mixed
• Eurozone Retail Sales
• UK PPI stronger than expected

USDCAD tests parity. 0.9975 next key support Posted: 05 Nov 2010 06:52 AM PDT The USDCAD has tested the 100 hour MA today (after the Canada Employment) and is now down testing/below the 1.0000 level. The next target is key support against the bottom trendline at the 0.9975 level.  The 1.0011 level will be watched above. This was the low from yesterdays trade.  Other upside targets would be 1.0029.  The CAD has been supported by much strong Building Permits today (UP 15.3%).  The Employment report was mixed although it did show strong Full Time employment gains.

President Obama on TV Posted: 05 Nov 2010 06:42 AM PDT Says looks to head to Asia and open up export markets in countries like “India”. I found it interesting he did not say China. Opening overseas markets to American goods is important. Comments that jobs is good but not good enough. Need to search for ways to creat jobs. Says tax breaks for small businesses will boost jobs. Tax breaks for middle class jobs essential.

USDJPY tests support on bullish disappointment Posted: 05 Nov 2010 06:38 AM PDT

Forex Morning Report- Nov 5th Posted: 05 Nov 2010 06:36 AM PDT Forex Morning Report- Nov 5th

Feds Hoenig on newswires Posted: 05 Nov 2010 06:32 AM PDT Hoenig has consistently voted to raise rates at the Fed Meeting. He is on the wires saying the FOMC must begin taking steps to normalize policy.  He adds that housing needs greater market discipline and that raising rates is needed for a more stable economy.

US Pending Home Sales Data due at 10AM Posted: 05 Nov 2010 06:18 AM PDT

EURUSD moves lower on better jobs but corrects Posted: 05 Nov 2010 05:58 AM PDT Watcht the 1.4111 to 1.4125 above. A move below the 1.4072 and 1.4059 (100 hour MA) needed to put bears back in charge.

Canada Building Permits Way Up Posted: 05 Nov 2010 05:44 AM PDT

US Unemployment Better. USDJPY moves higher. Dollar higher Posted: 05 Nov 2010 05:30 AM PDT Unemployment 9.6% vs 9.6% last NFP 151K Revison better at 107k vs 64K Private Sectore +159K revision higher at 107 vs 64K Underemployed at 17% vs 17.1% Business services +46K Trade, Transportation +37K Avg hourly earnings +0.2% YoY is 1.7% USDJPY surged higher and is above resistance at 81.31. That is now support. The EURUSD moves below the 100 hour MA at the 1.4062 level.  Watch this to 1.4072 as resistance now for the EURUSD. Next downside target is the trendline and 61.8% retracement level at the 1.4023 area. A break of this level will next target the 200 hour MA at the 1.3968 level.  The better data and weaker focus on the EURO, should find sellers on rallies.  The 5 minute chart will be eyed for clues too.

US Employment awaited Posted: 05 Nov 2010 05:26 AM PDT NFP +60 K vs -95K Private sector: +80 K vs +64K. Focus will be on this. Unemployment 9.6% vs 9.6% The USDJPY should go higher on stronger and lower on weaker. Focus on the EURUSD has reversed to the downside with debt concerns. Watch for a move higher to run into resistance. I think a weak number is bad for the dollar. A strong number is good for the dollar but let the levels dictate the bias.

Bobbys Corner-Open Market-Nov.5.2010 Posted: 05 Nov 2010 05:22 AM PDT Good Morning: FX markets were range bound in Asia and early European trading-as the markets await this morning’s employment data. The Euro lost some traction in overnight trading against the USD and JPY as investors sold bonds from the “smaller” EU countries, as concerns over their sovereign debt issues continue to plague the region. Equity markets were mostly lower-as are US Futures at this time. Oil:$86.59                                                               Gold:$1380.20 TIME FOR EST. PRIOR 8:30A.M. CHANGE IN NONFARM PAYROLLS OCT. 60K -95K 8:30A.M. CHANGE IN PRIVATE PAYROLLS OCT. 80K 64K 8:30A.M. CHANGE IN MANUFACT. PAYROLLS OCT. 5K -6K 8:30A.M. UNEMPLOYMENT RATE OCT. 9.60% 9.60% 8:30A.M. AVG. HOURLY EARNINGS MoM ALL EMP. OCT. 0.10% 0.00% 8:30A.M. AVG. HOURLY EARNINGS YoY ALL EMP OCT. 1.60% 1.70% 8:30A.M. AVG. WEEKLY HOURS ALL EMPLOYEES OCT.     34.2O 34.2O 10:00A.M. PENDING HOME SALES MoM SEPT. 3.00% 4.30% 10:00A.M. PENDING HOME SALES YoY SEPT. -18.40% HAVE A GREAT DAY-WEEKEND & GOOD LUCK

US Employment the focus now. Dollar strengthens on weaker EURO Posted: 05 Nov 2010 05:02 AM PDT We have been through 4 central bank meetings with RBA raising, US lowering and ECB and BOE staying unchanged. The US had their elections. Canada released their unemployment. It is now time for the US Employment. For a review, and the key levels to watch, click on the following link.

Canada Employment comes out mixed Posted: 05 Nov 2010 04:13 AM PDT Full time Employment up 47.2. Part time down -44.2. Net Change 3 K which was worse than the 15K expected but moving people from part time to full time is overall a better mix. The unemployment rate fell to 7.9% from 8.0%. The Participation Rate dipped to 67.2%. Private sector jobs rose 37.8K.  Although total jobs added was weaker than expectation, the mix is better.  The CAD$ has cotten weaker (higher USDCAD) off the report. The USDCAD shot up to the 100 hour MA at the 1.0084 level and found the sellers.  The price reached a low of 1.0083. The correction came down to test at the 50% retracment of the days range and old high.   Now it is wait time for the US Unemployment report.

Eurozone Retail Sales Posted: 05 Nov 2010 03:02 AM PDT Eurozone Retail Sales m/m came in at -0.2%, weaker than the 0.3% expected and a slight improvement over the -0.4% prior reading. Eur/Usd currently trades at 1.4168, relatively unchanged.

UK PPI stronger than expected Posted: 05 Nov 2010 02:34 AM PDT UK PPI Input  m/m came in at 2.1%, stronger than the 0.9% expected. PPI Output came in at 0.6%, stronger than the 0.2% expected. These high readings may indicate that inflation is on the rise. Gbp/Usd made marginal gains on heels of release, currently trading at 1.6220.

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