Tuesday, December 21, 2010

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Forex Morning Report- Dec 21

Posted: 21 Dec 2010 06:30 AM PST

Fed extends swap arrangements with ECB, BOJ and BOE

Posted: 21 Dec 2010 06:03 AM PST

This is designed to increase liquidity conditions on a global basis to insure end of year liquidity pressures do not materialize and should there be issues in 2011, that they too have a release valve.

GBPUSD surges higher off a break of intraday resistance

Posted: 21 Dec 2010 05:52 AM PST

EURUSD spurts to the upside. Test resistance levels

Posted: 21 Dec 2010 05:37 AM PST

The EURUSD has had 3 spurts today. One to the downside, and two to the upside. The most recent took the price above the 100 bar MA on the 5 minute chart toward the resistance level against the 38.2% retracement of the move down from Fridays high to the low (at 1.3195) and the high from yesterday’s trade at 1.3185. For a look at the technical picture click on the following link

Canada Retail Sales Improve

Posted: 21 Dec 2010 05:31 AM PST

Retail Sales:       Survey: 0.5%        Actual: 0.8%       Prior:  0.6%        Revised: 0.4%

Retail Sales Less Autos (MoM):      Survey: 0.7%       Actual: 0.9%     Prior:  0.4%     Revised: 0.2%

The NY Opening Forex Commentary is available for viewing

Posted: 21 Dec 2010 05:15 AM PST

Bobbys Corner-Open Market-Dec.21.2010

Posted: 21 Dec 2010 05:15 AM PST

bob-slade-forex-2-150x200Good Morning:

Moody’s Investor Services stated today that they may be looking at a rating downgrade for Portugal, as they state that “sluggish” growth in Portugal will be the main culprit in any upcoming downgrade.
Comments from China that they have taken “concrete action” to ease the sovereign debt crisis, and that China backs  the EU’s efforts to ensure financial stability helped the Euro maintain throughout the morning trading session. 

Air travel is still causing disruptions throughout Europe.  Frankfurt airport was closed this morning, and London’s Heathrow airport is running at 1/3 capacity.  The trip home for the Christmas holiday in Europe is going to be a chore-as there is no predicted letup in the bad weather-and it will take days to clear out the already crowded airspace.

Asia and European equity markets were higher-and US Futures are also higher at this time.

Oil:$89.45                                                 Gold:$1387.30 

No major data due out today.

HAVE A GREAT DAY & GOOD LUCK

Canada Retail Sales Data due at 8:30AM

Posted: 21 Dec 2010 05:04 AM PST

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Canada CPI less than expectations

Posted: 21 Dec 2010 04:55 AM PST

The CPI in Canada came in weaker than expectations at 0.1 vs expectations of 0.3%. The core inflation came in at 0.0% vs 0.2% expectations. The YoY numbers were also lower than expectations. Consumer price inflation is not a problem. 

The USDCAD moved higher on the news but stalled for now at the 1.0205 level once again (high was 1.0206). This level was the initial low way back in October 2009 and has been a price the market traders “remember”.  Yesterday the market traded to a high price of 1.0208 but quickly came off that level.  A move through the 1.0205-08 level should solicit additional buying interest today. If the level holds, a rotation back down is warranted.

UK Public Sector net borrowing wider than expected

Posted: 21 Dec 2010 01:36 AM PST

UK Public Sector net borrowing came in at 22.8B, wider than the 16.8B expected.

This figure measures the difference in value between spending and income for public corporations, the central government, and local governments during the previous month, thus a wider or greater difference is bad for the currency.

Gbp/Usd is off about 15 points since release,presently at 1.5515.

Portugal rating on review for downgrade by Moody’s

Posted: 21 Dec 2010 12:09 AM PST

This news sent Eur/Usd tumbling from 1.3190 to 1.3147 in a flash. The pair is trying to recoup, currently at 1.3163.

Swiss trade balance

Posted: 20 Dec 2010 11:17 PM PST

Swiss trade balance came in at 1.93B, slightly weaker than the 1.98B expected and the 2.10B prior reading.

Usd/Chf currently trades near session lows, at .9615.

GfK German Consumer Climate slightly weaker, Euro still gains

Posted: 20 Dec 2010 11:09 PM PST

GfK German Consumer Climate came out at 5.4, weaker than the 5.8 expected and 5.5 prior reading.

Eur/Usd continues to look bid, even in wake of weak number, in early European trade. The pair has just made a new high of 1.3194.

12-21 Economic Calendar

Posted: 20 Dec 2010 08:50 PM PST

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EURUSD influenced fundamentals but the technical hold support

Posted: 20 Dec 2010 02:59 PM PST

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The market was ripe from a move lower in the EURUSD today. Worries about country issues in the Eurozone started to spread to worries about France and their credit rating. However, snow in Europe, the holiday week and good technical support against the 200 day moving average (at 1.3101), kept the pair supported.

Going into the new day, the market will be focused on the 200 day MA at the 1.3001 level. A break of the key MA will next focus on the 50% retracement of the longer term move up from the June low of 1.1876 to the November high of 1.4281. That level comes in at 1.3078. A move below these two key levels should catch the markets attention and lead to further downside momentum.

The 1.3130 level was a strong ceiling on the upside during the NY trading day. A move above this level will next target the 1.3158 level, then the high for the day at 1.3185. A break above this level will likely move the pair back toward the 100 hour MA as the market continues to struggle with a solid direction for the pair.

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