Forex Market Updates & Commentary |  |
- GBPUSD trying to find support and momentum against 1.5909
- Spains Salgado sees no need for Spain rescue plan
- Germany’s Schaeuble relieved about markets calm
- EURUSD finds its NY range
- Apple shares reported down 5% on Jobs news
- Markets remain alive despite US holiday
- Bobbys Corner-Open Market-Jan.17.2011
- Fed’s Plosser discusses Fed dilemma
- Six AAA Nations of EU said to meet on EFSF
- BOJ says recovery pausing
- Japanese Household Confidence
- 1-17 Economic Calendar
- Aussie Continually Lower Today
- Shirakawa on the wires…
- Downward Pressure on the Euro.
| GBPUSD trying to find support and momentum against 1.5909 Posted: 17 Jan 2011 07:07 AM PST |
| Spains Salgado sees no need for Spain rescue plan Posted: 17 Jan 2011 06:55 AM PST Elena Salgado, Spain’s Finance Minister, is commenting that there is no preparation for a Spanish rescue plan for her country. |
| Germany’s Schaeuble relieved about markets calm Posted: 17 Jan 2011 06:49 AM PST Germany’s Schaeuble says the EU is relieved that the markets have calmed down and that the EFSF is not under stress. The German officials seem intent on keeping the status quo. What they do not want is for Germany to fund the transgressions of the budget deficit countries exclusively or disproportionally. Meanwhile Luxembourg De Jager is also on the wires saying there is no need to double the EU bailout fund. |
| Posted: 17 Jan 2011 06:43 AM PST |
| Apple shares reported down 5% on Jobs news Posted: 17 Jan 2011 06:02 AM PST Steve Jobs has gotten a medical leave of absence and it is reported that Apple shares down 5% on the news. |
| Markets remain alive despite US holiday Posted: 17 Jan 2011 05:38 AM PST Today is a US holiday (Martin Luther King day). Stocks markets are closed and banks are closed. London and Europe are in and the EU finance members are meeting today and tomorrow to discuss the rescue package provisions. Other than that there is no scheduled economic news or events. |
| Bobbys Corner-Open Market-Jan.17.2011 Posted: 17 Jan 2011 05:22 AM PST
The Euro lost some steam overnight-as investors have concerns that the meeting of European Finance Ministers set for today in Brussels to discuss a debit crisis strategy will not go far enough to stem the ongoing sovereign debt crisis in the EU. The stronger richer countries will need to lend more to the weaker countries within the EU-to keep the single currency viable. US equity markets are closed for the Martin Luther King Day holiday. HAVE A GREAT DAY & GOOD LUCK |
| Fed’s Plosser discusses Fed dilemma Posted: 17 Jan 2011 05:22 AM PST The Philadelphia Feds Plosser is on the newswires this morning. He commented on how the Fed cannot speed the changes in the Labor markets and cautions on asking too much of Monetary policy. He also added that monetary policy cannot prevent asset bubbles. His comments have had a limited impact. |
| Six AAA Nations of EU said to meet on EFSF Posted: 17 Jan 2011 04:54 AM PST A special meeting of the six AAA members of the EU took place before the entire EU began their talks on the rescue fund. The six triple AAA nations include:
The weakest countries of concern by the financial markets and their long term debt rating by Moody’s and S&P includes:
Today the EU finance ministers are meeting to discuss the bailout rescue fund for those countries in need. The current bailout fund totals 440 billion euros. The concern by the market today is that the leaders will not initiate a plan that is large enough to appease the markets desire to put the problem and fear to rest. Germany, the strongest nation within the EU, is opposed to increasing the fund. As a result, the EURO has come under some pressure today (although it is off the low). The meeting will last for 2 days. Last week, Portugal, Spain and Italy, the weak sisters of the EU were successful in floating debt, albeit at higher rates than in the past. Yields nevertheless fell after the success. Spain will look to auction 6 billon bills tomorrow. Portugal will issue 750 million euro 1 year bills on January 19th.
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| Posted: 16 Jan 2011 10:09 PM PST In their latest economic report the BOJ sees recovery pausing. For the first time since April 2009 the BOJ lowered the economic outlook for 7 out of 9 of Japan’s regions. Compared to October 2010 assessment a large number of regions improvement seems to be pausing. |
| Posted: 16 Jan 2011 09:08 PM PST Japanese Household Confidence came in at 40.1, weaker than the 41.7 expected and prior reading of 40.4. Usd/Jpy continues to trade in a tight range, currently trading at 82.88. |
| Posted: 16 Jan 2011 08:50 PM PST
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| Aussie Continually Lower Today Posted: 16 Jan 2011 07:13 PM PST After opening slightly higher today from Friday’s close, the AUD/USD pair has traded continually lower this session. On the hourly move from January 11th lows to the high on the 13th, it traded lower through the 61.8% until it rebounded after touching .98555; a level which has shown the pair both support and resistance in December. After some buying, the pair found resistance in the area of .99111 where both the 50.0% fibo line and the 100 hour moving average come in. If selling continues, the next level to look for is .9855. A turn around may see the pair back towards .99111.
Also note that there is no Australian economic data out until the Westpac Consumer Sentiment reading on Tuesday at 6:30 (eastern). |
| Posted: 16 Jan 2011 04:46 PM PST Speaking to regional BOJ branch managers in Tokyo, BOJ Governor Shirakawa made the following comments:
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| Downward Pressure on the Euro. Posted: 16 Jan 2011 04:21 PM PST After the recent rally on the Eur/Usd from 1.2870 to 1.3380 the Euro is still under pressure from long term trends in the euro crosses. Right now the Eur/Usd is testing a resistance point at 1.3400-1.3425 created from the Nov-5th drop from 1.4245 to 1.2970 on Nov 30th. The Eur/Usd has been consolidating formation from that dip until today and still have not broken out from ether the downside or topside. It has been stuck in a 400 pip range for a little over a month now but looking at the Euro crosses the Eur/Usd is still under pressure from the long term downward trends created from these crosses.
We see here that the Eur/Usd broke through a trend-line from that move down and stayed in a consolidation formation.
Here on the Eur/Jpy weekly chart we a huge drop in 2008 from 169.50 area to 114.00, then we see a pull back on the pair that consolidated around the 38.2% fifo level but then started to drift off to new lows at 105.50. Eur/Jpy still have trouble breaking through the low from the 2008 drop at 114.00 and started another bearish signal that it doesn’t have momentum to trade higher. If the Eur/Jpy can’t break through that resistance we might see it test the downside around 90.00.
The Eur/Gbp Weekly chart still show similar signs but with a more gradual decline. We see a horizontal line giving support early on for the pair but then later becomes a resistance line for the pair at 7-10-2010 and now is a resistance on for the pair. Eur/Gbp is still in a downward channel and looks to continue to grind lower. |
Good Morning:
On the Eur/Aud weekly chart Eur/Aud still continue on its free fall from highs of 2.1000 to recent lows of 1.2950. The pair still continues to stay in a tight channel grinding lower and making new lows each time.
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