Forex Market Updates & Commentary

EURUSD looks to test the 1.4096 level.
ISM Non-Manufacturing Composite Rises
Italy government to call confidence vote on their austerity package
Gold back up at $1900 on safe haven flows.
EURUSD moves toward the 200 day MA at 1.4013
Merkel adds Greece won’t get aid if Troika results are not positive
Germanys Chancellor Merkel Said To Have Warned That Greece Leaving the Euro-Zone Could Trigger a Domino Effect
Bobbys Corner-Open Market-Sept.6.2011
NY Morning Forex Commentary for September 5th 2011. It is all about the CHF
ISM Non-Manufacturing Data Due at 10AM
ECB says SNB took decision under its own responsibility.
SNB intervenes in currency markets. Sets minimum exchange rate target at 1.20 against the EUR.
Swiss CPI -0.3% vs. -0.1% forecast.
French fin. minister says there is no risk of a recession in France.
Spanish fin. minister rules out a second bailout for Spain, says coming quarters wont be as good as forecasted.

Posted: 06 Sep 2011 07:16 AM PDT

The US ISM non Manfacturing came is stronger at 53.3 vs 51.0 expectations. It has helped move the EURUSD on some risk taking. The rally, however has resistance at the close from yesterday at the 1.4096 level which is the close from yesterday and the 200 bar MA on the 5 minute chart.

ISM Non-Manufacturing Composite Rises

Posted: 06 Sep 2011 07:01 AM PDT

ISM Non-Manufacturing Composite: Survey: 51.0 Actual: 53.3 Prior: 52.7

August vs July 2011
Prices Paid: 64.2 vs 56.6
New Orders: 52.8 vs 51.7
Backlog of Orders: 47.5 vs 44.0
Supplier Deliveries: 53.0 vs 50.5
Inventory Change: 53.5 vs 56.5
Employment: 51.6 vs 52.5

Italy government to call confidence vote on their austerity package

Posted: 06 Sep 2011 06:51 AM PDT

Gold back up at $1900 on safe haven flows.

Posted: 06 Sep 2011 06:44 AM PDT

With countries fighting for “Who has the weakest currency”, the SNB saying “no more safe haven flows for the CHF”, stocks downs, oil down, that leaves Gold and Cash as kings. Gold has moved above the $1900 an ounce and looks toward the high from last week at the 1920.72 level.

EURUSD moves toward the 200 day MA at 1.4013

Posted: 06 Sep 2011 06:21 AM PDT

The EURUSD has been moving in a volatile fashion as it is being pushed and pulled from EURCHF buying on one hand and issues in the EU (Greece/Italy) on the other hand.

The pair is now down on the day now with the price below the 1.4096 level. Staying below keeps the pair on the defensive. The earlier low for the day was also breached below the 1.4038 level. but is now back above the key level. This level will now be eyed on the downside for intraday traders.

If the price is able to move back above yesterdays close look for a quick test of the 1.4123 level where the 38.2% of the days range and the 100 bar MA is found.

On the downside, a break below the new low for the day has key support against the 200 day MA (see green line in the chart below). The 200 day MA comes in at 1.4013 today. The price of the EURUSD fell below this key level last on July 12th. Before that, the EURUSD was last below the MA on January 12th.

Merkel adds Greece won’t get aid if Troika results are not positive

Posted: 06 Sep 2011 06:00 AM PDT

The EURUSD has been coming under pressure as the troubles in Greece take control in an already volatile market. The EURUSD has fallen below the previous lows for the day at 1.4038 but is now back above at 1.4058

Germanys Chancellor Merkel Said To Have Warned That Greece Leaving the Euro-Zone Could Trigger a Domino Effect

Posted: 06 Sep 2011 05:54 AM PDT

Bobbys Corner-Open Market-Sept.6.2011

Posted: 06 Sep 2011 05:23 AM PDT

Good Morning:

The FX markets were taken by surprise as the SNB (Swiss Nat’l Bank)-being very tired of the relentless rise in the CHF, intervened to weaken their own currency, and set a floor with the EUR/CHF at a rate of 1.20. With continued concerns that the rising CHF will deteriorate the country’s export sector, the SNB moved aggressively in the FX markets. This move prompted a short squeeze in all CHF pairings.
The CHF fell the most ever versus the Euro after the announcement.
The SNB has made comments that they are determined to enforce this setting, and is prepared to buy foreign currency to maintain this rate.

The ECB stated that the SNB acted alone, and did not collaborate with them regarding this announcement. The ECB is seen buying Italian and Spanish Bonds today-does anyone really care-on a day like this-probably not.

Gold jumped over $1900/oz-while Oil dropped.

World equity markets are mostly lower-and US Dow futures are lower by over 200 points at this time.

We have ISM-PMI data at 10 Am today-markets will be watching this data for signs of stability in the service sector.

HAVE A GREAT DAY & GOOD LUCK

NY Morning Forex Commentary for September 5th 2011. It is all about the CHF

Posted: 06 Sep 2011 05:12 AM PDT

ISM Non-Manufacturing Data Due at 10AM

Posted: 06 Sep 2011 04:21 AM PDT

ECB says SNB took decision under its own responsibility.

Posted: 06 Sep 2011 03:34 AM PDT

SNB intervenes in currency markets. Sets minimum exchange rate target at 1.20 against the EUR.

Posted: 06 Sep 2011 01:50 AM PDT

If the economic outlook and deflationary risks require, the SNB will take further measures.
Will enforce minimum rate with utmost determination.
Set minimum exchange rate target at 1.20 per EUR.
Massive over valuation of CHF poses an acute threat to the Swiss economy and carries risk of deflation.

Swiss CPI -0.3% vs. -0.1% forecast.

Posted: 06 Sep 2011 12:19 AM PDT

French fin. minister says there is no risk of a recession in France.

Posted: 05 Sep 2011 11:24 PM PDT

Spanish fin. minister rules out a second bailout for Spain, says coming quarters wont be as good as forecasted.

Posted: 05 Sep 2011 11:22 PM PDT