Forex Market Updates & Commentary

Pending Home Sales rebound
GBPUSD dam breaks and surges higher
USDJPY testing resistance. A break above 81.68 should be bullish
Gold breaks $1408 on better Chicago PMI
Chicago PMI surges higher.
Follow the technical story. The Morning forex Commentary is available for viewing
Market a bit confused on the better US data
Initial Claims come in better at 388K
ECB Nowotny on the wires
Bobbys Corner-Open Market-Dec.30.2010
NY Opening Forex Technical Commentary for Dec 30th
US Pending Home Sales due at 10:00 AM ET
Chicago PMI index to be released at 9:45 AM ET
US Initial Claims Data due at 8:30
12-30 Economic Calendar

Pending Home Sales rebound

Posted: 30 Dec 2010 07:04 AM PST

Come in at +3.5% MoM vs expectations of +0.8%.

So the data across the board today was better than expected.

GBPUSD dam breaks and surges higher

Posted: 30 Dec 2010 07:01 AM PST

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GBPUSD surged higher after breaking above the 100 hour MA at the 1.5433 level and the 200 hour MA at the 1.5447 level. Staying above these levels should keep the upward bias in tact for the pair. Next resistance at the 1.5465-69 (100 bar MA on the 5 minute chart and 50% of the days range. )

USDJPY testing resistance. A break above 81.68 should be bullish

Posted: 30 Dec 2010 06:58 AM PST

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The USDJPY is testing intraday channel resistance at 81.68. A break above should lead to higher prices. The 81.94 is the next target.

Gold breaks $1408 on better Chicago PMI

Posted: 30 Dec 2010 06:52 AM PST

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A break below 1404 is needed to confirm downside

Chicago PMI surges higher.

Posted: 30 Dec 2010 06:47 AM PST

Rises to 68.6 vs expectations of 61.
Prices paid 78.2 vs 70.7 last month
Production 74.0 vs 71.3 last month
New orders 73.6 vs 67.2 last monthOrder backlogs 64.6 vs 48.9 last month
Inventories 60.1 vs 48.4 last month
Employment 60.2 vs 56.3 last monthSupplier deliveries 64.2 vs 60.4 last month

Follow the technical story. The Morning forex Commentary is available for viewing

Posted: 30 Dec 2010 06:31 AM PST

Market a bit confused on the better US data

Posted: 30 Dec 2010 05:59 AM PST

The dollar is a bit confused. THe better data would/should lead to a stronger dollar, weaker gold, but that is not necessarily the case in holiday trading. Gold has moved toward support on the downside, but currency pairs like the USDJPY are steady. Typicallly, you would expect a move higher in the USDJPY off the better data and flight out of the risk currencies (which includes the JPY). The EURUSD meanwhile fell, but has started to rally back higher (dollar lower). It is moving above the resistance at the 1.32765 level (50 % of the December high to low range). Holiday markets muddy the water. BE careful. Watch the technical clues. Not the fundamentals..

Initial Claims come in better at 388K

Posted: 30 Dec 2010 05:30 AM PST

The labor department says there no special factors. This is indicative of a better labor market. Normally it should be good for the dollar but we are seeing the USDJPY move a touch lower. The stock market might be the wild card as worries of earlier than usual Fed action might come into focus. This has in the past led to lower USDJPY but with holiday trade anything can happen today. Gold is moving lower which you would expect if the flight into the safety of the Gold, unwinds.

This is the lowest level since July 2008

ECB Nowotny on the wires

Posted: 30 Dec 2010 05:08 AM PST

Challenges for some EURO area countries
Price stability remains the focus for ECB

Bobbys Corner-Open Market-Dec.30.2010

Posted: 30 Dec 2010 05:08 AM PST

Good Morning:

The USD was a touch lower in overnight trading. With major currencies having tight monetary policy, the emerging market currencies seem to be the biggest gainers in the marketplace.
The Fed has reiterated their near zero interest rate policy, along with Japan. The EU is in termoil over their sovereign debt problems, and China is still growing by leaps and bounds. All these components will be the center piece of 2011’s foreign exchange markets.

Asian equity markets were mixed, and European equity markets were lower. US Futures are lower at this time.

Oil:$90.74 Gold:$ 1412.30
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TIME FOR EST. PRIOR

8:30A.M. INITIAL JOBLESS CLAIMS 25-Dec 415K 420K

8:30A.M. CONTINUING CLAIMS 18-Dec 4084K 4064K

9:45A.M. CHICAGO PURCHASING MANAGER DEC. 61.O 62.5O

10:00A.M. PENDING HOME SALES MoM NOV. 0.80% 10.40%

10:00A.M. PENDING HOME SALES YoY NOV. -22.40%

HAVE A GREAT DAY & GOOD LUCK

NY Opening Forex Technical Commentary for Dec 30th

Posted: 30 Dec 2010 04:55 AM PST

US Pending Home Sales due at 10:00 AM ET

Posted: 30 Dec 2010 04:37 AM PST

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