Forex Market Updates & Commentary

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• EURUSD tests support at trendline, 100 day MA
• IBD/TIPP Economic Optimism lower than expectations
• USDJPY finds profit taking buyers on the dips
• Forex Morning Report- Dec 7
• Bank of Canada keeps rates unchanged
• EURUSD boosted by additional US stimulus
• NY Opening Forex Commentary: RBA keeps rate unchanged. BOC next
• Bobbys Corner-Open Market-Dec.7.2010
• Bank of Canada to keep rates unchanged. Decision at 9 AM ET
• German Factory Orders
• UK Manufacturing & Industrial Production
• 12-7 Economic Calendar
• RBA Leaves Rates Unchanged @ 4.75%
• RBA Leaves Cash Rate at 4.75%
• Aussie Rate Decision at 10:30 (eastern)

EURUSD tests support at trendline, 100 day MA Posted: 07 Dec 2010 07:14 AM PST The 100 day MA comes in at 1.3337. There is support from a trendline on the hourly at 1.3344. Both are being tested as the EURUSD does an “about face” after earlier strength.

IBD/TIPP Economic Optimism lower than expectations Posted: 07 Dec 2010 07:02 AM PST The Investors Business Daily Economic Optimism index fell to 45.8 from 46.7 last month. The expectation was for a rise to 47.2. The Economic outlook fell to 48.7 from 50.0. The Personal Financial Outlook rose slightly to 52.0 from 51.9. The Federal Policies index fell to 36.8 from 38.3. last month

USDJPY finds profit taking buyers on the dips Posted: 07 Dec 2010 06:41 AM PST The USDJPY has found support at the 82.52 level and is testing the 82.87 level next.  A move above this level should lead to further bullish momentum with the 83.10 and the 83.35 area the next targets.  Risks is for a move below 82.71 at the moment.

Forex Morning Report- Dec 7 Posted: 07 Dec 2010 06:30 AM PST Forex Morning Report- Dec 7

Bank of Canada keeps rates unchanged Posted: 07 Dec 2010 06:02 AM PST The Bank of Canada kept their rates unchanged at 1.0%. Global economic recovery is proceeding as expected Recovery in Canada is proceeding at a moderate pace Second half is slightly weaker than projected in October Monetary Report Household spending was stronger and business investment was robust Net exports were weaker and is a drag on growth. Strong C$ cited Inflation is in line with expectations.  Pressures are largely unchanged Considerable monetary stimulus in place Any additional stimulus would need to be carefully considered

EURUSD boosted by additional US stimulus Posted: 07 Dec 2010 05:48 AM PST

NY Opening Forex Commentary: RBA keeps rate unchanged. BOC next Posted: 07 Dec 2010 05:27 AM PST

Bobbys Corner-Open Market-Dec.7.2010 Posted: 07 Dec 2010 05:15 AM PST Good Morning; Risk appetite was strong in the FX markets as we await the vote on Ireland’s budget.  The markets are fairly confident that the Irish budget will pass-as this will allow Ireland to be eligible for bailout funds from the EU. Another note that caused the USD to weaken was President Obama’s agreement with Republican lawmakers regarding extending tax reductions to the middle class.  These tax reductions were originally introduced during the Bush Administration. One of the main catalysts for the Obama Administration for agreeing to the extension of these tax reductions, is that the US economy (and population) is in no shape to sustain any tax increases at this time.  He also agreed to a accept lower taxes on higher earners, dividends, and multi-million dollar estates for  an additional 2 years. Equity markets were higher around the world-and US Futures are also higher. Gold reached a record high overnight ($1428.55/oz)-as investors seek an alternative investment to the Forex/currency markets. Oil rose to over $90/bar- the highest price in over 2 years-as speculation that the report on US stockpiles may show a decrease. Oil:$ 90.30                                                Gold:$1427.20 TIME FOR EST. PRIOR 10:00A.M. IBD/TIPP ECONOMIC OPTIMISM  DEC. 47.2O 46.7O 10:00A.M. JOLTs JOB OPENINGS  OCT. 2929′ 3:00P.M. CONSUMER CREDIT      OCT.       $-1.0B $2.1B HAVE A GREAT DAY & GOOD LUCK

Bank of Canada to keep rates unchanged. Decision at 9 AM ET Posted: 07 Dec 2010 04:55 AM PST The Bank of Canada is expected to keep rates unchanged today when they announce their interest rate decision at 9:00 AM.  They may signal that they will remain cautious on the back of lower exports.  In the 3rd quarter GDP was reported to grow by 1.0% which was lower than expectations. Slower trade growth is the contributor.

German Factory Orders Posted: 07 Dec 2010 03:18 AM PST German Factory Orders m/m came in at 1.6%, weaker than the 1.9% expected. This is negative news for the Euro, which has softened in recent trade. Eur/Usd has come off ealier high of 1.3394, currently trading at 1.3355.

UK Manufacturing & Industrial Production Posted: 07 Dec 2010 01:35 AM PST UK Manufacturing Production m/m came in at 0.6%, stronger than the 0.4% expected. Industrial Production came in at -0.2%, weaker than the 0.3% expected. Gbp/Usd did not react much to this mixed data. The pair trades at 1.5778.

12-7 Economic Calendar Posted: 06 Dec 2010 08:48 PM PST

RBA Leaves Rates Unchanged @ 4.75% Posted: 06 Dec 2010 07:46 PM PST The RBA had the following comments following their decision to leave rates unchanged at 4.75%: Asset values little changed in recent months. Household caution led to noticeable boost in savings. Overall credit growth quite subdued. Private investment in Australia starting to pick up. Inflation little changed over next few quarters. Terms of trade boost national income ’strongly,’ highest since the early ’50’s. More moderate pace of job growth over period ahead. Job growth very strong over the past year. Modest growth continues in the US. Price pressures have picked up in China. Inflation increasing somewhat over medium-term. Financial markets focused on European governments credit worthiness. The Aussie weakened slightly following the comments as the RBA remains concerned over the situation in Europe. On the chart below we see the AUD/USD pair has had some issues breaking back above the 61.8% retracement of the the November move from the all-time highs. That level sh0uld continue to produce sellers as uncertainty on the old continent continues to sustain the fear trade.

RBA Leaves Cash Rate at 4.75% Posted: 06 Dec 2010 07:30 PM PST The AUD traded lower following the release.

Aussie Rate Decision at 10:30 (eastern) Posted: 06 Dec 2010 07:07 PM PST

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