Forex Market Updates & Commentary

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• Chicago Purchasing Manager 58.4 vs 59.0 Survey and Prior of 60.4
• The Forex Week Ahead for October 31st 2011
• Bobbys Corner-Open Market-October.31.2011
• Canada Showing Good Numbers
• USDJPY breaks above the 78.00 level and scoots higher
• NY Morning Forex for October 31st 2011
• Canada Industrial Product Price, Raw Materials Price Index, Gross Domestic Data Due at 8:30AM
• Eurozone unemployment rate (Sep) 10.2% vs 10.0%.
• Greek retail sales (Aug) -1.5% vs. -4.3% prior.
• UK mortgage approvals (Sep) 51K vs. 50.6K expected.
• Euro tests 38.2% on 15 minute chart
• UBS cuts Euro area 2012 GDP forecsat to 0.2% from 1%, and forecasts a recession in H1 of 2012.
• BOJ’s Shirakawa says he hopes JPY sale will help stabilize FX markets, adding that the strong JPY is spillover from EU fiscal woes.
• German retail sales (Sep) 0.4% vs. 1.0% expected.
• Kiwi finding support at .80761

Chicago Purchasing Manager 58.4 vs 59.0 Survey and Prior of 60.4 Posted: 31 Oct 2011 06:46 AM PDT

The Forex Week Ahead for October 31st 2011 Posted: 31 Oct 2011 06:20 AM PDT

Bobbys Corner-Open Market-October.31.2011 Posted: 31 Oct 2011 05:49 AM PDT Good Morning: The Bank of Japan (BOJ) intervened in the FX markets as the USD/JPY came very close to breaching the 75.00 barrier at the start of Asian trading.  The pair moved about 300 points after the announcement. With the vital export business again in jeopardy with the USD/JPY at 75, the BOJ needed to move, as they have been talking about intervening for weeks. The JPY moved quickly, but shortly thereafter gave back some of the momentum that had been established just after the intervention.  Comments from BOJ officials seem to indicate that  intervention will need to continue.   The EUR/USD pair sold off, and dropped though the key 1.40 level overnight.  With doubts rising about the effectiveness of the EFSF European rescue plan-the pair took a bit of a licking. The ECB was seen in the marketplace again last night buying Italian and Spanish debt. Dow Futures are lower-along with gold and oil. HAVE A GREAT DAY & GOOD LUCK

Canada Showing Good Numbers Posted: 31 Oct 2011 05:32 AM PDT Industrial Production Price Index MoM:    Survey:  0.2%    Actual: 0.4%    Prior:  0.5%   Revised: 0.4% Raw Materials Price Index:      Survey: -1.9%   Actual:  1.4%     Prior: -3.2%     Domestic Product (MoM):   Survey:  0.2%  Actual: 0.3%   Prior: 0.3%  Revised: 0.4% Gross Domestic Product (YoY):  Survey: 2.2%  Actual: 2.4%   Prior: 2.3%  Revised: 2.4%

USDJPY breaks above the 78.00 level and scoots higher Posted: 31 Oct 2011 05:17 AM PDT The 78.00 is the 38.2% of the days range. A break above led to the price scooting higher.  The 77.83 is the 100 day MA.  The market traders will be watching these levels on the downside today. Stay above and the bullishness can continue. With Japanese exporters selling on the rally higher today, one must be cognizant that the businesses the BOJ is trying to help are the sellers of the USDJPY above.  So we may continue to see more two way flows in the pair.  I will be watching the 100 bar MA on the 5 minute chart for clues (this is the next target above). That level currently comes in at the 78,57 level.

NY Morning Forex for October 31st 2011 Posted: 31 Oct 2011 04:59 AM PDT

Canada Industrial Product Price, Raw Materials Price Index, Gross Domestic Data Due at 8:30AM Posted: 31 Oct 2011 04:09 AM PDT

Eurozone unemployment rate (Sep) 10.2% vs 10.0%. Posted: 31 Oct 2011 03:24 AM PDT

Greek retail sales (Aug) -1.5% vs. -4.3% prior. Posted: 31 Oct 2011 03:23 AM PDT

UK mortgage approvals (Sep) 51K vs. 50.6K expected. Posted: 31 Oct 2011 02:38 AM PDT

Euro tests 38.2% on 15 minute chart Posted: 31 Oct 2011 02:16 AM PDT After the sell-off earlier the pair rebounded back up to 1.40489, but found resistance at this level. It also appears that there is currently support at 1.3987.

UBS cuts Euro area 2012 GDP forecsat to 0.2% from 1%, and forecasts a recession in H1 of 2012. Posted: 31 Oct 2011 12:25 AM PDT Adds that Japan’s FX action is based on teh G20 agreement that excessive and disorderly FX moves are undesirale.

BOJ’s Shirakawa says he hopes JPY sale will help stabilize FX markets, adding that the strong JPY is spillover from EU fiscal woes. Posted: 31 Oct 2011 12:15 AM PDT

German retail sales (Sep) 0.4% vs. 1.0% expected. Posted: 31 Oct 2011 12:01 AM PDT

Kiwi finding support at .80761 Posted: 30 Oct 2011 11:49 PM PDT Most of the risk currencies have been showing some signs of a rebound after selling off earlier today. In the case of the NZD/USD the pair found support at the 50.0% fibo line on the move from the October 26th low to the high on the 28th; we also find the 100 hour moving average at this level. We are currently testing the 38.2% to the topside, the next target higher is .81623.

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