Forex Market Updates & Commentary

Japan to Unveil New Steps Against Strong Yen as Early as Next Week. USD/JPY Spikes Up to 77.23
GBPUSD buoyed by market optimism as well
Michigan Consumer Confidence will test the markets optimism
US Business Inventories Rise to 0.5%, Michigan Confidence Falls to 57.5 vs 60.2
The EURUSD has moved above the key resistance at 1.3846
Geithner on CNBC
EURUSD makes new week highs. Looks to test the 50% of the move down from August
EU Source: Investors in new issue Eurozone bonds may be given guarantees to cover losses
Canada Manufacturing Sales Improve
Bobbys Corner-Open Market-October 14.2011
US Data All Proves Positive
Retails sales stronger.. EURUSD initial reaction to the upside.
The NY Morning Forex Commentary for October 14th 2011
Canada Manufacturing Sales Expected to be 0.50%
US Retail Sales & Import Price Index Data Due at 8:30AM

Japan to Unveil New Steps Against Strong Yen as Early as Next Week. USD/JPY Spikes Up to 77.23

Posted: 14 Oct 2011 08:03 AM PDT

GBPUSD buoyed by market optimism as well

Posted: 14 Oct 2011 07:28 AM PDT

The GBPUSD has been buoyed by the EU optimism as well and looks toward the next target resistance at the 1.5859 level. This is the topside channel resistance off the hourly chart (see above).

Michigan Consumer Confidence will test the markets optimism

Posted: 14 Oct 2011 07:06 AM PDT

Stocks are up. Risk On trade is on. Optimism is high on the back of EU debt solutions (that are still not fully understood). Retail Sales were better. The EURUSD is above support at 1.3830, 1.3846 and 1.3860 now. How will weaker consumer sentiment (57.5 vs 60.2) fit in?

If the price can stay above the forementioned support the bulls remain in control. If the price is able to dip below the levels, there could be some profit taking on the failure.

So this is a key test for the EURUSD. So far with the price at the 1.3880, the optimism remains in control.

US Business Inventories Rise to 0.5%, Michigan Confidence Falls to 57.5 vs 60.2

Posted: 14 Oct 2011 07:01 AM PDT

The EURUSD has moved above the key resistance at 1.3846

Posted: 14 Oct 2011 06:39 AM PDT

The level will now be support for the pair. The next target is target on the daily chart comes in a the 1.3935 level. This was the high from September 15th.

Looking at the hourly chart the price has also moved above channel trendline resistance at the 1.3860 level (see chart below). This will be eyed as interim support for the pair as well today.

Geithner on CNBC

Posted: 14 Oct 2011 06:18 AM PDT

IMF has substantial uncommitted resources to apply to crisis
Important ways to find ways to increase EFSD lending power
EU has substantial resources to tackle their problems
Europe are “clearly moving” to solve debt crisis
Economic numbers have been encouraging over the next couple of weeks
Growth is too slow.
Europe needs to fix crisis
Congress needs to enact to support growth
China needs to let exchange rate increase to promote more global growth
Would like to see a more comprehensive strategy from Europe
Largest banks need more capital to protect against failure. Want to see banks build capital over time and that the global banks are on a level playing field.

EURUSD makes new week highs. Looks to test the 50% of the move down from August

Posted: 14 Oct 2011 06:14 AM PDT

The 50% of the move down from August comes in at the 1.3846 level.

The move to new week highs has taken the price above the 38.2% of the move down from the 2011 high.

EU Source: Investors in new issue Eurozone bonds may be given guarantees to cover losses

Posted: 14 Oct 2011 05:33 AM PDT

Canada Manufacturing Sales Improve

Posted: 14 Oct 2011 05:33 AM PDT

Bobbys Corner-Open Market-October 14.2011

Posted: 14 Oct 2011 05:32 AM PDT

Good Morning:

FX markets prepare themselves for this weekend’s G-20 meeting, and expectations are high that the Euro Zone will come up with a meaningful monetary plan to deal with the regions sovereign debt issues.

In other news-S&P downgraded Spain, and placed them on negative watch. This followed Fitch rating-who downgraded the country on October 7. Fitch also cut Italy’s rating on the same day. Spain’s leading bank-Santander was also downgraded earlier this week.

In additional signs of stress on the banking system-Fitch cut the rating of UBS, Lloyds, and Royal Bank of Scotland. The rating agency also put more than a dozen banks under negative watch.

World equity markets all traded higher-and US Futures are also higher this morning.
Oil, Gold, Silver are all higher this morning.

TIME		FOR	EST.	PRIOR
8:30A.M.	IMPORT PRICE INDEX MoM	SEPT	-0.40%	-0.40%
8:30A.M.	IMPORT PRICE INDEX YoY	SEPT	12.40%	13.00%
8:30A.M.	ADVANCE RETAIL SALES	SEPT.	0.70%	0.00%
8:30A.M.	RETAIL SALES LESS AUTOS	SEPT	0.30%	0.10%
8:30A.M.	RETAIL SALES EX AUTO & GAS	SEPT	0.30%	0.10%
9:55A.M.	U. OF MICHIGAN CONFIDENCE	OCT.P	6O.3	59.4O
10:00A.M.	BUSINESS INVENTORIES	AUG.	0.40%	0.40%

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

US Data All Proves Positive

Posted: 14 Oct 2011 05:32 AM PDT

Import Price Index(MoM): Survey: -0.4% Actual: 0.3% Prior: -0.4% Revised: -0.2%

Import Price Index(YoY): Survey: 12.4% Actual: 13.4% Prior: 13.0%

Advance Retail Sales: Survey: 0.7% Actual: 1.1% Prior: 0.0% Revised: 0.3%

Core Retail Sales: Survey: 0.3% Actual: 0.6% Prior: 0.1% Revised: 0.5%

Retails sales stronger.. EURUSD initial reaction to the upside.

Posted: 14 Oct 2011 05:31 AM PDT

1.3830-46 is the next targets on the topside (50% of the move down from August high is at 1.3830 and 1.3846 is the 38.2% from the 2011 highs)
The USDJPY has the 61.8% retracement target at the 77.18 to tackle.

Canada Manufacturing Sales also better than expectations with the MoM gain showing 1.4% vs 0.5% expectations.