Forex Market Updates & Commentary

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• GBPUSD bull flags last chance
• Factory orders better than expected…
• US Factory Orders Shows Positive Data
• Gold approaches trendline support
• EURUSD looks toward the 100 day MA again
• GBPUSD forming bull flag intraday
• The NY Morning Forex Commentary
• Gold breaks lower
• Bobbys Corner-Open Market-Jan.4.2011
• NY Opening Forex Commentary for Jan 4th
• US Factory Orders Due at 10AM
• Eurozone CPI Flash Estimate
• UK Net lending to individuals and Final mortgage approvals
• UK Manufacturing PMI
• German Unemployment Change

GBPUSD bull flags last chance Posted: 04 Jan 2011 07:10 AM PST

Factory orders better than expected… Posted: 04 Jan 2011 07:02 AM PST Durable Goods was revised to -0.3 from -1.3. Ex Transporations was revised to +3.6% from 2.4%. The number is another in what is a string of better economic data for the US.  The Durable goods was released at the end of December.  Most people don’t know but Durable Goods is a part of Factory Orders and is often revised when the Factory orders data is released.  Looking at the components of the Factory Orders, defense orders rebounded and accounted for some of the surprise.  Ex defense factory orders were up 0.3% vs 0.1%. Below are other details of the breakdown. New Orders  0.7%  vs -0.7% last month  Ex-transportation 2.4%  vs 0.1% last month  Ex-defense 0.3%   vs 0.1% last month  Ex-computers 0.6%  vs -0.6% last month Capital goods  -4.4% vs -6.6% last month  Non-defense-6.8% vs -3.8% last month   Excluding aircraft 2.6% vs -3.2% last month    3-mo. annualized  8.5%  vs 11.3% last month  Defense 17.5% vs -26.8% last month

US Factory Orders Shows Positive Data Posted: 04 Jan 2011 07:01 AM PST

Gold approaches trendline support Posted: 04 Jan 2011 06:53 AM PST Look for some profit taking buyers against trendline support in the hourly chart at the $1383 level.  However, should there be a break, the next key trendline support comes in at $1359 (see daily chart below).

EURUSD looks toward the 100 day MA again Posted: 04 Jan 2011 06:44 AM PST The 100 day MA is at 1.3379. It is a key level once again for the EURUSD today

GBPUSD forming bull flag intraday Posted: 04 Jan 2011 06:33 AM PST

The NY Morning Forex Commentary Posted: 04 Jan 2011 06:20 AM PST   Gold has retreated. The dollar has moved higher with the EURUSD, USDJPY, USDCHF leading the way. GBPUSD remains in a bull flag formation. Will the formation hold.  For the key technical levels to eye, click on the following video link As a reminder we have a webinar today at 4PM. TOPIC: The Forex Traders New Years Resolutions”. To register go to: https://www1.gotomeeting.com/register/254273472

Gold breaks lower Posted: 04 Jan 2011 05:54 AM PST As per the Opening Forex Commentary, the 38.2% retracement line was a key borderline today for the gold. The price broke through that level and the selling ensued. The price broke through the 200 hour MA at the $1400 level and that level is now the resistance intraday.  The next targets for the pair come in at $1386 area where a trendline is found. There is another target trendline below at the $1359 level.  A break of this line should lead to further selling pressure for the pair.

Bobbys Corner-Open Market-Jan.4.2011 Posted: 04 Jan 2011 05:12 AM PST Good Morning: The first full trading day of 2011 got underway with risk on the plate as the main course.  With all of the major centers back after the New Years holiday-the equity markets were poised for a rally after yesterday’s 90+ point increase in the Dow to start off 2011. In the FX world the EUR/USD pair jumped over the 1.34 handle, and cable roared over 150 points after UK data showed that the PMI Manufacturing Index rose to a 16 year high. The USD picked up against the JPY, as a report today may show that factory orders dropped less than originally expected, along with better than expected auto sales data.  These are hopefully signs that the US economy is seeing signs of recovery. World equity markets traded higher-as are US Futures.  Gold fell, refined sugar dropped over 3% as rains in India may damage crops in India (the 2nd biggest producer of sugar worldwide). Oil:$91.90                                                           Gold:$1408.70  HAVE A GREAT DAY & GOOD LUCK

NY Opening Forex Commentary for Jan 4th Posted: 04 Jan 2011 05:00 AM PST

US Factory Orders Due at 10AM Posted: 04 Jan 2011 04:46 AM PST

Eurozone CPI Flash Estimate Posted: 04 Jan 2011 02:01 AM PST Eurozone CPI Flash Estimate y/y came in at 2.2%, stronger than the 2.0% expected. Eur/Usd had made new highs just prior to release, trading up to 1.3408. The pair is presently at 1.3400.

UK Net lending to individuals and Final mortgage approvals Posted: 04 Jan 2011 01:36 AM PST UK Net lending to individuals m/m came in at 0.7B, weaker than the 0.9B expected. Final mortgage approvals came in at 48,000, stronger than the 47,000 expected. Mixed news with the net lending number a greater detriment to sterling, but not enough to erode gains made by the just released PMI figure. Gbp/Usd is at its high of 1.5599.

UK Manufacturing PMI Posted: 04 Jan 2011 01:32 AM PST UK Manufacturing PMI came in at 58.3, stronger than the 57.3 expected. Gbp/Usd rose to a new session high of 1.5599 on news. The pair trades 5 pips off that as we speak.

German Unemployment Change Posted: 04 Jan 2011 01:00 AM PST German Unemployment (seasonally adjusted) rose by 3,000 in December, a decline of 15,000 was expected. The Unemployment rate remained at 7.5%. The jobless claim increase is partly due to winter weather, according to the German labor department. Maybe this is why Eur/Usd did not take a hit by the news. The pair currently trades at 1.3353.

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