Forex Market Updates & Commentary

EURUSD watching the 38.2% (other support) of the move up for the day
Bobbys Corner-Open Market-March7.2011
USDCAD inches higher on weaker Canada Building Permits
The NY Opening Forex Commentary/The Week Ahead Webinar at 9:30 AM
Canada Building Permits Data due at 8:30AM
Trichet due to speak at the BIS at 7 am (eastern).
EUR/USD Testing Channel Resistance
Euro-zone Sentix Investor Confidence 17.1; better than expected.
Coming up at 4:30…
Greek Fin. Minister Says Moody’s Cut is “Completely Unjustified”.
Greece downgraded by Moody’s to B1 from Ba1; negative outlook.
Japan’s Leading Indicators
3-7 Economic Calendar

EURUSD watching the 38.2% (other support) of the move up for the day

Posted: 07 Mar 2011 05:47 AM PST

The EURUSD is down testing intraday support at the 1.4000/04 level. The level corresponds with the 100 bar MA on the 5 minute chart and the 38.2% of the low to high trading range for the day. The EURUSD moved higher today on expectations of ECB will raise interest rate before the Fed. The move higher was despite bad news in the form of a downgrade by Moody’s of Greece debt from Ba1 to B1 (3 level decline).

A break below the 1.4000 level will likely lead to further selling pressure with a move toward 1.3984 as a next potential target (see chart below) and 1.3958 (38.2% of the move up from the Trichet rally higher on Thursday).

Bobbys Corner-Open Market-March7.2011

Posted: 07 Mar 2011 05:39 AM PST

Good Morning:

Despite another downgrade of Greece by Moody’s-the EUR/USD pushed through the 1.40 level in overnight trading. The downgrade by Moody’s lowered the rating by 3 notches, and assigned a negative outlook for the country.
The markets will look to see the details of Mr. Trichet’s press conference today regarding the ECB’s intent on monetary policy and interest rates.
With higher interest rates on the horizon-the Euro has risen 9% versus the USD this year-the Euro seems to be resilient against all the negative sovereign debt problems facing the Euro Zone. Some of the Euro’s strength has come on the heels of the USD, and that Fed Chairman Bernanle shows no sign of increasing interest rates anytime soon.

Oil continued to rise, and hit a 29 month high as fighting in Libya intensifies. Gold also rallied as the political uncertainty in the Middle East continues.

Asian equity markets were mixed, while European equity markets rose-and US Futures are higher at this time too.

Oil:$106.52 Gold:$1442.60

NO MAJOR DATA DUE OUT TODAY.

HAVE A GREAT DAY & GOOD LUCK

USDCAD inches higher on weaker Canada Building Permits

Posted: 07 Mar 2011 05:38 AM PST

The Canada Building Permits came in at -5.1%. Residential Permits came in at -0.9% and Non Residential Permits fell -13.3%.

The USDCAD has inched higher on the weaker data. Higher oil prices due to the Mideast tension has kept the Canadian dollar supported (USDCAD down). The 100 bar MA on the 5 minute chart comes in at the 0.9712. The 38.2% of the move down today comes in at the level as well. A move above this level is therefore needed to give intraday bulls confirmation that a low is in place. The next target would be the 0.9719.

The NY Opening Forex Commentary/The Week Ahead Webinar at 9:30 AM

Posted: 07 Mar 2011 05:00 AM PST

Canada Building Permits Data due at 8:30AM

Posted: 07 Mar 2011 04:34 AM PST

Trichet due to speak at the BIS at 7 am (eastern).

Posted: 07 Mar 2011 03:10 AM PST

EUR/USD Testing Channel Resistance

Posted: 07 Mar 2011 02:17 AM PST

Moody’s downgraded Greece earlier from B1 to Ba1; the markets initial knee-jerk reaction was to sell the pair 20 points lower, but a rebound occurred and we are now trading off session highs around 1.4025. With Greece still facing some remaining uncertainties the downgrade may not have come as a surprise. Currently, the EUR/USD is testing channel resistance which began back on February 21st; more than one consecutive close above this line may be a bullish signal for the pair in which case further buying may occur.

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