Forex Market Updates & Commentary

---

• US Factory Orders & ISM Composite Come in Higher
• EURUSD tests target support on better ISM/Factory Orders
• EURUSD moves lower on Trichet and technical bearishness. This and more in the NY Morning Forex Commentary
• EURUSD marches lower. Technical levels breached
• EURUSD moves lower on Trichet, better US data
• US ISM Non-Manufacturing Composite & Factory Orders Due at 10AM
• ECB Trichet comments
• Initial Claims fall as expected. Unit Labor Costs fall
• US Unit Labor Costs Fall, Nonfarm Productivity & Jobless Claims Better
• Bobbys Corner-Open Market-Feb.3.2011
• ECB Trichet, Initial Claims, ISM awaited today. Employment tomorrow. NY Opening Forex Commentary
• 8:30AM Economic Data Includes: Nonfarm Productivity, Unit Labor Costs & Jobless Claims
• French official said markets are regaining confidence in the euro.
• Spanish bond auction goes well; 3.5B sold at offer side
• Euro monthly retail sales much worse at -0.6%.

US Factory Orders & ISM Composite Come in Higher Posted: 03 Feb 2011 07:08 AM PST

EURUSD tests target support on better ISM/Factory Orders Posted: 03 Feb 2011 07:05 AM PST The ISM non manufacturing and better Factory Orders have sent the EURUSD down further to test the next target at the 1.3627-39 area. The price is finding support against the level (see prior post) at least for the time being. The bias has swung toward the dollar today - especially against the EURO - with corrections shallow.

EURUSD moves lower on Trichet and technical bearishness. This and more in the NY Morning Forex Commentary Posted: 03 Feb 2011 06:31 AM PST EURUSD moves lower on Trichet and technical bearishness. This and more in the NY Morning Forex Commentary

EURUSD marches lower. Technical levels breached Posted: 03 Feb 2011 06:02 AM PST The market is interpretting ECB Trichets comments as being less hawkish than prior. That and an increasingly more bearish bias is sending the EURUSD lower. From a technical perspective the price is below the 100 (1.3738 - 1) and 200 hour (1.3704 - 3) MAs, below the 1.3743 level (61.8% of the move down from the November 2010 high to the low -2) and is now below a trendline connecting the Jan 19th low to the low on January 31st. That level comes in at the 1.3672 level currently (at 4). All these levels now become resistance levels for the pair.  These are borderline levels to trade against on corrective rallies. Targets on the downside not focus on the 1.3627-39 area which was an area that the market used as support and resistance from Jan24th to Jan31st. When you get a sharp move to the downside, it is also a good idea to measure short term retracements from the move down. ON the 5 minute chart below, the move down from the 8:30 release/events has the 38.2% retracement of the move coming in at 1.3698.

EURUSD moves lower on Trichet, better US data Posted: 03 Feb 2011 05:57 AM PST

US ISM Non-Manufacturing Composite & Factory Orders Due at 10AM Posted: 03 Feb 2011 05:54 AM PST

ECB Trichet comments Posted: 03 Feb 2011 05:35 AM PST Very Close Monitoring of inflation Rates are appropriate Positive underlying growth Inflation expectations  firmly anchored Current Monetary policy accomodative Non standard measures are temporary Risk to economy to the downside Financial market tension pose downside risk Inflation to moderate toward the  end of the year. But inflation could still increase temporarily in the near term Inflation risk broadly balanced. Could move to the upside Risk of inflation due to commodity prices  Money and credit growth is still low Essential for countries to fully implement fiscal plans Spending Restraint is important step Implementation of credible policies is crucial What counts is not immediate inflation Look at Euro area as a whole not only Germany Absolutely essential to avoid second round effects Bond program in ongoing

Initial Claims fall as expected. Unit Labor Costs fall Posted: 03 Feb 2011 05:32 AM PST Initial Claims fell to 415K after the volatile last couple weeks for the release that saw the number move from 403K to 457K. The 415K is likely more appropriate. Unit Labor Costs down which is a worry for future spending.

US Unit Labor Costs Fall, Nonfarm Productivity & Jobless Claims Better Posted: 03 Feb 2011 05:32 AM PST Nonfarm Productivity:    Survey: 2.0%         Actual:  2.6%        Prior:  2.3%        Unit Labor Costs:    Survey:  0.2%         Actual:  -0.6%         Prior:  -0.1% Jobless Claims:  Survey:  420K    Actual: 415K   Prior: 454K    Revised:  457K    Continuing Claims:  Survey: 3950K    Actual:  3925K    Prior: 3991K  Revised: 4009K

Bobbys Corner-Open Market-Feb.3.2011 Posted: 03 Feb 2011 05:21 AM PST Good Morning: The USD gained overnight ahead of US data due out today (ISM), which is expected to show that the service sector has increased again, and tomorrows employment data which is expected to show an increase in hiring. As expected the ECB left interest rates uncharged-and President Trichet will hold a press conference later this morning. Cable had a good showing overnight with positive data on the UK’s service sectors, raising speculation that the BOE may have some room to raise interest rates later this year. World equity markets are higher-but US Futures are slightly lower at this time. Oil is higher as the conflict in Egypt turned violent with gunfire being heard in Cairo’s Tahir Square.  Even though no disruptions in supplies have happened to the oil markets yet-investors are keeping a close eye on the events in Egypt.   Oil:$91.59                                                 Gold:$1329.40 TIME FOR EST. PRIOR 7:45 A.M. ECB RATE DECISION 8:30A.M. ECB PRESS CONFERENCE 8:30A.M. ICSC CHAIN STORE SALES YoY JAN. 3.10% 8:30A.M. NONFARM PRODUCTIVITY 4Q P 2.00% 2.30% 8:30A.M. UNIT LABOR COSTS      4Q P 0.20% -0.10% 8:30A.M. INITIAL JOBLESS CLAIMS 1/29 420K 454K 8:30A.M. CONTINUING CLAIMS 1/22 3950K 3991K 10:00A.M. ISM-NONMANF.COMPOSITE JAN. 57.1O     57.1O 10:00A.M. FACTORY ORDERS DEC. -0.50% 0.70% HAVE A GREAT DAY & GOOD LUCK

ECB Trichet, Initial Claims, ISM awaited today. Employment tomorrow. NY Opening Forex Commentary Posted: 03 Feb 2011 04:55 AM PST

8:30AM Economic Data Includes: Nonfarm Productivity, Unit Labor Costs & Jobless Claims Posted: 03 Feb 2011 04:34 AM PST

French official said markets are regaining confidence in the euro. Posted: 03 Feb 2011 03:00 AM PST France calls for euro-zone governance accord by march EU summit. Reiterates calls for more “flexible” EFSF fund. Favors EFSF bond purchases, government official says. France wants fund to have “precautionary approach”. Calls for regular EU leasers meetings on governance plan. Wants to get EFSF to full 440B potential. “Not in full agreement” with Germany on EFSF future. France calls for minimum business tax across Europe.

Spanish bond auction goes well; 3.5B sold at offer side Posted: 03 Feb 2011 02:05 AM PST Average yields equalling the offer side of the market, which is almost back to the type of bidding seen pre-crisis. This further perpetuates Campa’s positive outlook on Spain, as he stated earlier the country will never need a bailout.

Euro monthly retail sales much worse at -0.6%. Posted: 03 Feb 2011 02:01 AM PST

You are subscribed to email updates from Forex News and Commentary by FXDD To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610