Forex Market Updates & Commentary

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• EURUSD above 1.3281 now….
• GBPUSD rebounds off support
• US Pending Home Sales Data Better
• EURUSD back above the 1.3122 key level and the pendulum swings
• EURUSD finds its range? 1.3122 above 1.3063 below
• Forex Morning Report- Dec 2
• EURUSD moves lower but be aware…
• EURUSD tests key support at 1.3122 again
• Trichet comments
• The Initial Claims are weaker but Thanksgiving week data
• Jobless & Continuing Claims Both a Bit Higher
• Bobbys Corner-Open Market-Dec.2.2010
• Trichet awaited at 8:30 AM. Key levels to watch for clues
• Jobless Claims & Continuing Claims data due at 8:30AM
• ECB Interest Rate Decision Unchanged

EURUSD above 1.3281 now…. Posted: 02 Dec 2010 07:12 AM PST If the price cannot move below the 1.3176 level (give a buffer), look for a rotation back higher. 1.3216 is the high for the day then 1.3225.

GBPUSD rebounds off support Posted: 02 Dec 2010 07:05 AM PST

US Pending Home Sales Data Better Posted: 02 Dec 2010 07:04 AM PST Pending Home Sales (MoM):    Survey:  -1.0%    Actual: 10.4%      Prior:  -1.8%     Pending Home Sales (YoY):      Actual: -22.4     Prior:  -24.9%

EURUSD back above the 1.3122 key level and the pendulum swings Posted: 02 Dec 2010 06:48 AM PST The pendulum swung the other way and the price for the EURUSD has moved back above the 1.3122 level. This puts the 1.3150-53  level back in focus on the topside as the market volatility continues for the benchmark pair. The 1.3150 level represents some highs and lows (ceilings and floors) on the 5 minute chart.  See chart above.

EURUSD finds its range? 1.3122 above 1.3063 below Posted: 02 Dec 2010 06:32 AM PST

Forex Morning Report- Dec 2 Posted: 02 Dec 2010 06:24 AM PST Forex Morning Report- Dec 2 Webinar today at 4pm http://forex.fxdd.com/webinars

EURUSD moves lower but be aware… Posted: 02 Dec 2010 06:01 AM PST The market is interpreting the comments from Trichet as being bearish for the EURUSD.  The idea may be that the ECB needs to be more accomodative at this point.  Their reluctance to add liquidity is therefore a risk to the economy.  However, be aware for a rebound. The market can switch their bias on a dime and they could decide that the “take it slow” policy and “see what happens” is ok for now.  They may also like that they buy the weak countries paper but keep the strong sisters (i.e. Germany) in check (by sterlizing the bond purchases).  There is good support at the 1.3046 level (see chart below).  Watch this level to provide some buying interest.

EURUSD tests key support at 1.3122 again Posted: 02 Dec 2010 05:45 AM PST Equals 200 day MA and 100 hour MA.

Trichet comments Posted: 02 Dec 2010 05:33 AM PST Rates are appropriate Price development is moderate Medium term inflation moderate with inflation expectations firmly anchored Momentum remains positive Policy remains accomodatiove Liquidity provisions to be adjusted as appropriate Monitor developments closely Stimulus plan remains in tact.  ECB to delay withdrawl of emergency liquidity (the door is open but it is not closed either)  EURUSD dips to 200 day MA at 1.3122 Downside risk to growth due to financial market tension 2010 inflation 1.5-1.7% unchanged Inflaiton for 2011 1.3%-2.3% from 1.2% to 2.2% (nearly unchanged) 2010 GDP 1.6 to 1.8% Banks should strengthen capital basis Banks must expand credit when demand picks up Banks must stabilize their balance sheets. ECB will sterilize any bond purchases (meaning they will buy bonds from Ireland perhaps Spain and Portugal to ease issuing pressure but at the same time withdrawl liquidity elsewhere)

The Initial Claims are weaker but Thanksgiving week data Posted: 02 Dec 2010 05:31 AM PST Come in at 436K vs 424K expected.  Continuing Claims come in higher than expected at 4270 vs 4200K.  Often the seasonals are difficult.  It will be the average over the next few weeks which will be more important for the trend.

Jobless & Continuing Claims Both a Bit Higher Posted: 02 Dec 2010 05:31 AM PST Jobless Claims:  Survey: 424K    Actual:  436K   Prior: 407K    Revised:  410K    Continuing Claims:  Survey: 4200K    Actual:  4270K    Prior: 4182K   Revised:  4217K

Bobbys Corner-Open Market-Dec.2.2010 Posted: 02 Dec 2010 05:23 AM PST Good Morning: Risk appetite  returned to the FX world and EUR/USD moved up to  a high of 1.3216 in overnight trading.  The Euro moved higher after a better than expected Spanish debt auction.  The 3 year Spanish bonds came in at a yield of 3.71% versus the 4 % that was originally feared. As expected the ECB left interest rates unchanged-but the markets are looking for ECB President Trichet’s comments this morning. All eyes will be on Friday’s US employment data-set for 8:30 AM tomorrow. World equity markets rose after yesterday’s 250 point rise in the Dow.  US Futures are also higher this morning. Oil:$86.82                                                   Gold:$1389.20               7:45AM ECB POLICY MEETING 1.O% 1.O% 8:30AM ECB PRESS CONFERENCE ICSC CHAIN STORE SALES YOY NOV   ——– 1.60% 08:30AM INITIAL JOBLESS CLAIMS  NOV 27   424K   407K 08:30AM CONTINUING CLAIMS  NOV 20  4200K  4182K 10:00AM PENDING HOME SALES MoM OCT -0.90% -1.80% 10:00AM PENDING HOME SALES YoY  OCT   —– -24.90% HAVE A GREAT DAY & GOOD LUCK

Trichet awaited at 8:30 AM. Key levels to watch for clues Posted: 02 Dec 2010 05:13 AM PST Jean Claude Trichet speaks at 8:30.  The market will be awaiting any comments on bond purchases.   The market has the potential to trade in a volatile fashion.  Event risk is increased.  Know the key levels and use to determine market bias. Key levels to watch On the downside 1.3150 then 1.3122 then 1.3078. The topside levels to watch: 1.3181 then 1.3225 and 1.3281.

Jobless Claims & Continuing Claims data due at 8:30AM Posted: 02 Dec 2010 04:57 AM PST

ECB Interest Rate Decision Unchanged Posted: 02 Dec 2010 04:55 AM PST The ECB kept rates unchanged. The market awaits comments from Trichet at 8:30 AM

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