Forex Market Updates & Commentary

BOC Monetary Report comments out
Fitch analyst say Portugal bond yields are not justified
FXDD Live Education Thursday Jan 20 @ 4PM
NY Morning Forex Commentary- Jan 19th
Moody’s says Portugal being considered for a rating review
EURUSD tests channel resistance
Canada data sends USDCAD higher. 0.9929 area still finding sellers
US Building Permits Rise as Housing Starts Drop
Canada Manufacturing Sales Lower
Bobbys Corner-Open Market-Jan.19.2011
Swiss Economic Minister warns about high CHF
GBPUSD tests upside trendline.
NY Opening Forex Commentary for Jan 18 2011
Canada Manufacturing Sales Due at 8:30AM
US Housing Starts & Building Permits Due at 8:30AM

BOC Monetary Report comments out

Posted: 19 Jan 2011 07:32 AM PST

Growth to reach 3% in second half of 2011
C$ Strength restraining export growth
Risks still elevated but moving toward balanced
Interest rate rises to be carefully considered
2.3% growth in 4th quarter 2010
Boosts C$ assumption to parity
Business investment to be robust
Modest recovery slowed by currency.

The USDCAD has moved above key resistance at the 0.9929 level and should now target 0.9977.

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Fitch analyst say Portugal bond yields are not justified

Posted: 19 Jan 2011 07:24 AM PST

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The EURUSD has moved below the 1.3498 level and is testing the 100 bar MA on the 5 minute chart. So far, the pair has found support against the level. However, a break takes some of the wind out of the bulls sails for the day and should lead to some additional selling pressure. Expect to see sellers against the 1.3498 level now.

FXDD Live Education Thursday Jan 20 @ 4PM

Posted: 19 Jan 2011 06:49 AM PST

FXDD Live Education Thursday Jan 20 @ 4PM >> Register now

NY Morning Forex Commentary- Jan 19th

Posted: 19 Jan 2011 06:47 AM PST

AUDIO Technical Difficulties. Please accept our apologies.

Moody’s says Portugal being considered for a rating review

Posted: 19 Jan 2011 06:07 AM PST

This they add, is whether they request bailout money or not. Moody’s long term debt rating is A1. S&P is A+ and Fitch is also A+.

This news will be a test for the EURUSD. A move below 1.3498 and the 100 bar MA on the 5 minute chart currently at 1.3478 (and moving higher) will be a test. If support can hold, the longs are still in charge. If broken, it could signal further selling momentum to come.

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EURUSD tests channel resistance

Posted: 19 Jan 2011 06:02 AM PST

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The next target is being tested in the EURUSD against the 1.3540 area. This is a parellel line off of the bottom trend line. Look for selling against the level. However a break should not be ignored as it represents another bullish sign for the pair. On the downside, staying above the 1.3464 level keeps the upside trend in place (high from yesterdays trade).

Canada data sends USDCAD higher. 0.9929 area still finding sellers

Posted: 19 Jan 2011 05:41 AM PST

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The 0.9929 level is being tested again as the weak Manufacturing sales has sent the price higher toward the key level. The 0.9929 level was the spike low in the USDCAD going back to April 2010. A break above should solicit additional buying with a target of the 0.9977 level being the next key level.

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The Bank of Canada Monetary Policy report will be released at 10:30 AM. Comments on export weakness may send the pair through the key level. On the downside, look for buyers against the 0.9900 level with a move below, a concern for the dip buying bulls.

US Building Permits Rise as Housing Starts Drop

Posted: 19 Jan 2011 05:40 AM PST

Housing Starts: Survey: 550K Actual: 529K Prior: 555K Revised: 553K

Housing Starts (MoM)%: Survey: -0.9% Actual: -4.3% Prior: 3.9% Revised: 3.8%

Dec vs. Nov
Total: 84.4 vs 74.7
Single Family: 47.8 vs 43.7
Multi Family: 36.6 vs 31.0

Building Permits: Survey: 554K Actual: 635K Prior: 530K Revised: 544K

Building Permits (MoM)%: Survey: 1.8% Actual: 16.7% Prior: -4.0% Revised: -1.4%

Dec vs. Nov
Permits: 635 vs 544
Under Construction: 428 vs 431
Completed: 585 vs 562

Canada Manufacturing Sales Lower

Posted: 19 Jan 2011 05:38 AM PST

Bobbys Corner-Open Market-Jan.19.2011

Posted: 19 Jan 2011 05:27 AM PST

Good Morning:

Risk appetite is again the flavor of the day.

EUR/USD topped the 1.35 handle-before profit takers took advantage of the price and drove the pair back down into the mid 1.34 levels. The pair is back over 1.35 at this time.
Good results by both IBM and Apple helped lead the risk rally. Selling by Asian central banks limited the rally.

This morning we have data on the US Housing market-speculation is that we will see disappointing data again in this sector-which also added to the USD downturn overnight.

Commodities rallied-which is a good sign that the global recovery is gaining more and more traction.

Asian equity markets are higher-and European equity markets are lower-as are US Futures at this time.

Oil:$92.09 Gold:$1373.20

TIME FOR EST. PRIOR REV.

7:00A.M. MBA MORTGAGE APPLICATIONS 14-Jan 2.20%

8:30A.M. HOUSING STARTS DEC. 550K 555K

8:30A.M. BUILDING PERMITS DEC. 555K 530K 544K

8:30A.M. HOUSING STARTS MoM DEC. -0.90% 3.90%

8:30A.M. BUILDING PERMITS MoM DEC. 2.00% -4.00% -1.40%

HAVE A GREAT DAY & GOOD LUCK

Swiss Economic Minister warns about high CHF

Posted: 19 Jan 2011 05:11 AM PST

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The Swiss Economic Minister is on the newswires warning about the effects of a high CHF. He says that economic growth will be slower as a result of slumping export growth. Also, Switzerland relies on tourism and that too may be suffering as a result of the high currency.

Against the US dollar the USDCHF has key support at the 0.9598-0.9604 level. This level will be eyed by the market with buyer likely against it and stops on a break lower. The topside has resistance against the 100 hour MA at the 0.9635 level currently. A spike higher found sellers against the level increasing the importance as a key level to break through today.

Against the EURCHF, the pair has moved above the 38.2% retracement of the move down from the October high to the low, at the 1.2947 level. If the price can stay above the support level, the bias remains to the upside today.

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