Forex Market Updates & Commentary

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EURUSD pushes the upside with the next key target being the 1.4305/11 area
ECB Nowotny: Governments are not keeping their part of the bargain
The EURUSD consolidating/flagging. Awaiting a break for NY direction
Initial Claims as expected Productivity falls but Labor Costs rise
The NY Opening Forex Commentary for Sept 1st 2011
French bank concerns hurt EURUSD today
Merkel says competitiveness in Europe needs to be comparable
Plethora of US Data This Morning Including, Nonfarm Productivity, Payrolls & Unit Labor Costs
Irish Finance Minister does not expect to have extra funds EFSF
Pimco’s Balls on the Wires
ECB’s Weidmann Delivering Speech in Hanover
Euro weaker in recent trade, rebounding slightly.
UK manufacturing PMI 49.0 vs. 48.6 expected, lowest reading since July 2009.
Eurozone PMI Weaker at 49.0 vs 49.7

Posted: 01 Sep 2011 06:03 AM PDT

The Traders Course will focus on the EU and the EURO in a continuation of the summer time series.

EURUSD pushes the upside with the next key target being the 1.4305/11 area

Posted: 01 Sep 2011 05:55 AM PDT

The EURUSD pushes to the upside in the first NY break. The 1.4305-11 are the next targets. Support at the 1.4274-84 now. (see prior post)

There is talk of bond buying in EU bonds helping the tone.

ECB Nowotny: Governments are not keeping their part of the bargain

Posted: 01 Sep 2011 05:45 AM PDT

Hard, serious work needed to solve the crisis

The EURUSD consolidating/flagging. Awaiting a break for NY direction

Posted: 01 Sep 2011 05:40 AM PDT

The EURUSD is consolidating in the NY session after falling sharply in Europe on French bank worries and weaker ISM data. The pair has support at 1.4272 and 1.4262. On the topside 1.4285 amd 1.4293 are the break points.

Looking at the daily chart the price low today has also found support against the 38.2% of the move down from the May high at the 1.42577.

Finally, the hourly chart is also signalling a reason to pause. The price stall has slowed at the mid August levels (see chart below).

Initial Claims as expected Productivity falls but Labor Costs rise

Posted: 01 Sep 2011 05:34 AM PDT

Initial Claims 409k vs 410k expectations. Last revised to 421k from 417K
Continuing Claims 3735 k vs 3681 k expectations.

Non Farm Productivity 2Q -0.7%
Labor Cost 2Q +3.3%

Above 400 but down from last week. Continuing Claims higher not in the right direction.

Non Farm Productivity is good and bad. The productivity went down but people earning more. People making more could mean more spending.

Labor Costs went up 6.2% in the 1Q and 3.3% in the 2Q.

The NY Opening Forex Commentary for Sept 1st 2011

Posted: 01 Sep 2011 05:06 AM PDT

French bank concerns hurt EURUSD today

Posted: 01 Sep 2011 04:40 AM PDT

The French banks were in the spot light overnight as Societe Generale was removed from the STOXX Euro 50 index. There were rumors of the same bank having funding problems but these rumors seem to be unsubstantiated.

Merkel says competitiveness in Europe needs to be comparable

Posted: 01 Sep 2011 04:38 AM PDT

Comments that she appreciates Portugal effor on structural reform. This is in response to comments from Portugal PM saying measures are very difficult but they will be implemented. THe PM also commented that privatisaton is key to reform efforts

Plethora of US Data This Morning Including, Nonfarm Productivity, Payrolls & Unit Labor Costs

Posted: 01 Sep 2011 04:35 AM PDT

Irish Finance Minister does not expect to have extra funds EFSF

Posted: 01 Sep 2011 04:30 AM PDT

Pimco’s Balls on the Wires

Posted: 01 Sep 2011 03:12 AM PDT

Says:

It’s right for ECB to be in bond market
ECB can be ‘very powerful’ if it chooses
ECB can’t do everything to ease debt crisis
Long term debt solution for governments

ECB’s Weidmann Delivering Speech in Hanover

Posted: 01 Sep 2011 02:21 AM PDT

Says:

ECB must scale back crisis measures, reduce risk
Blurred fiscal-monetary policy erodes confidence
Up to governance to assume more risk
One solution to debt crisis could be fiscal union

Euro weaker in recent trade, rebounding slightly.

Posted: 01 Sep 2011 02:04 AM PDT

The EUR has traded lower since the entrance of Europe into the market with all of the European equity indexes opening, and currently trading lower; additional downward pressure added by a worse than expected Euro zone manufacturing PMI. On an hourly chart the EUR/USD was testing the 1.43533 level before making a pass through and closing below it.

We are currently trading in the area of the 50.0% on the daily chart. From this perspective the trend appears to be downward, a close below this level would be a bearish signal to indicate further selling.