Forex Market Updates & Commentary

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• US New Home Sales Rise 18% in December
• Builders stopped building so supply gets knocked down
• Forex Morning Report now ready- Jan 26
• RBNZ Interest Rate decision awaited
• EURUSD tries the downside in early NY trade
• Bobbys Corner-Open Market-Jan.26.2011
• The Opening Forex Commentary for January 26th
• US New Home Sales Data due at 10AM
• Irish Parliament backs finance bill
• Mortgage Applications fell 12.9%
• EUR/CHF Higher
• 1.3743 next stop for euro?
• Sterling rallies on MPC minutes
• UK MPC meeting minutes due out in 25 minutes…
• Italian retail sales

US New Home Sales Rise 18% in December Posted: 26 Jan 2011 07:05 AM PST Number of new homes for sale is lowest since January of 1968 New Home Sales:   Survey: 300k   Actual: 329K   Prior:290K  Revised:  280K DEC vs. NOV Total Sold:  22K vs 20K Not Started:  5K vs 3K Under Construction:  6K vs 5K Complete:  11K vs 12K New Home Sales(MoM):  Survey: 3.5%   Actual: 17.5%   Prior: 5.5%  Revised:  0.0%

Builders stopped building so supply gets knocked down Posted: 26 Jan 2011 07:02 AM PST The supply of homes for sale is at the lowest level since Jan 1968 Median Price $241,500 up 8.5% from year ago Supply of homes falls to 6.9 Months (april 2010 reached 6.3 month) This is good data and coupled with the Existing Home sales data suggests that supply is getting back in line.

Forex Morning Report now ready- Jan 26 Posted: 26 Jan 2011 06:30 AM PST Forex Morning Report now ready- Jan 26

RBNZ Interest Rate decision awaited Posted: 26 Jan 2011 06:06 AM PST Today at 3PM the RBNZ will announce their interest rate decision with expectations of an unchanged decision. The NZDUSD has held the 200 hour MA in trading today. A break below is needed to switch the bias to the downside.

EURUSD tries the downside in early NY trade Posted: 26 Jan 2011 05:46 AM PST

Bobbys Corner-Open Market-Jan.26.2011 Posted: 26 Jan 2011 05:29 AM PST Good Morning: The Euro gained in overnight trading as optimism grows that the EU will contain the debt crisis as the economy recovers within the region. Last night’s State of the Union address by President Obama was well received.  The President called for a partial freeze on government spending as part of his plan to quell the out of control US budget deficit. Executive and economists at the World Economic Forum in Davos, Switzerland commented that the measures spelled out in the President’s State of the Union is not enough to seriously cut the deficit.  Not being able to control the deficit is one of the biggest risks for the global recovery. At 2:15 PM this afternoon the FOMC will make an announcement regarding interst rates and QE programs. Equity markets are higher-as are US Futures. Oil:$86.84                                             Gold:$1333.40 7:00A.M. MBA MORTGAGE APPLICATIONS 21-Jan 5.00% 10:00A.M. NEW HOME SALES  DEC. 300K 290K 10:00A.M. NEW HOME SALES MoM      DEC. 3.50% 5.50% 2:15P.M. FOMC RATE DECISION         HAVE AGREAT DAY & GOOD LUCK

The Opening Forex Commentary for January 26th Posted: 26 Jan 2011 05:08 AM PST

US New Home Sales Data due at 10AM Posted: 26 Jan 2011 04:37 AM PST

Irish Parliament backs finance bill Posted: 26 Jan 2011 04:18 AM PST The vote was a razor thin 80 to 78. The EURUSD reacts to the upside.

Mortgage Applications fell 12.9% Posted: 26 Jan 2011 04:16 AM PST The Purchase index fell by -8.7% and the refinancing index fell by -15.3%.  The Average rate on a 30 year mortgage rose slightly to 4.8% from 4.77%

EUR/CHF Higher Posted: 26 Jan 2011 02:34 AM PST Euro has been trading higher, most notably in the EUR/CHF pair. Seen below, the pair is making a pass through the 100 hour moving average and may reach the 61.8% line on the move from January 25th highs to yesterday’s lows. Resistance shown by the 100 hour MAVG could bring the pair back to the 50% line.

1.3743 next stop for euro? Posted: 26 Jan 2011 01:48 AM PST It appears that after continually closing higher every day since January 10th, the next stop for the EUR/USD may be 1.37431.

Sterling rallies on MPC minutes Posted: 26 Jan 2011 01:35 AM PST Voted 6-2-1 to leave rate unchanged, bond plan unchanged. MPC’s Swan saw risk CPI remains above target in medium term. BOE’s Weale joined Sentance in voting for 25 basis point rate increase. Small rate rise would leave policy “highly accommodative”. BOE says “most likely prospect” is for continued U.K. growth. CPI risk change may be casr for some stimulus withdrawal. BOe says U.K. recovery continued “broadly as expected”. Seen below, GBP/USD traded all the way up to 1.58707 following the release, but immediatley came off following some consolidation earlier in the session.   Additionally, BBA mortgage approvals came in at 28.7K; worse than the 29.9K survey and 29.7K prior release.

UK MPC meeting minutes due out in 25 minutes… Posted: 26 Jan 2011 01:06 AM PST

Italian retail sales Posted: 26 Jan 2011 01:01 AM PST The market showed a limited reaction acter Italy’s retail sales came in at -0.3%; worse than the 0.1% forecast ad 0.3% prior reading.

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