Forex Market Updates & Commentary |  |
- Pending Home Sales Rise Sharply
- Chicago Purchasing Manager Come in Stronger at 62.6 vs 58.5 Survey, Prior of 58.4
- USDCHF falls with the dollars decline
- USDJPY trading “between the goal posts”
- Forex Basics: Big Picture Wednesday Webinar 4:00PM with Shawn Powell
- GBPUSD tests 50% retracement at the 1.5756
- EURUSD shoots up on central bank action
- Canada Data Moves Lower
- Central Banks coordinate to add liquidity to the market
- Nonfarm Productivity and Unit Labor Costs Drop Slightly
- Bobbys Corner-Open Market-November.30.2011
- US Unit Labor Costs and Nonfarm Productivity To Be Released at 8:30AM
- Canada GDP, Raw Materials & IPPI Data Due at 8:30AM
- US Employment Change Improves to 206K vs Prior of 110K and Survey of 130K
- US Employment Change Data Due at 8:15AM
| Pending Home Sales Rise Sharply Posted: 30 Nov 2011 07:02 AM PST Pending Home Sales (MoM): Survey: 2.0% Actual: 10.4% Prior: -4.6% Pending Home Sales (YoY): Actual: 7.3% Prior: 7.9% |
| Chicago Purchasing Manager Come in Stronger at 62.6 vs 58.5 Survey, Prior of 58.4 Posted: 30 Nov 2011 06:43 AM PST |
| USDCHF falls with the dollars decline Posted: 30 Nov 2011 06:24 AM PST
The USDCHF did not escape the dollar selling today. The price fall has already moved below the initial low reached on the first leg down but the break to new lows did find some buyers. The price correction of the 2nd leg down, stalled at the 38.2% of that move (see chart above) and held but failing to extend may have the profit takers attention. A move above the 0.9096 to 0.9106 level would be sign a temporary bottom may be in place today. Holding below, should keep the bears content. |
| USDJPY trading “between the goal posts” Posted: 30 Nov 2011 06:16 AM PST
The USDJPY is trading “between the goal posts” as defined by the 100 and 200 hour MAs. The 200 hour MA comes in at the 77.33 level. the 100 hour MA comes in at the 77.69 level. Traders will look to use the levels to define risk on trades in the volatile market. Look for momentum on a break in either direction today. |
| Forex Basics: Big Picture Wednesday Webinar 4:00PM with Shawn Powell Posted: 30 Nov 2011 06:03 AM PST
Forex Basics: Big Picture Wednesday Webinar 4:00PM with Shawn Powell Register now |
| GBPUSD tests 50% retracement at the 1.5756 Posted: 30 Nov 2011 06:03 AM PST
Like the EURUSD the GBPUSD is testing the 50% of the move down from the November 11th high to the low at the 1.5756 level. A break above opens the door for further upside momentum in today’s trading. Looking at the 5 minute chart, any corrections off the resistance above will have traders eyeing the 1.5722 level as first support. If that level gives way look for the test of 1.5689. This is the 38.2% of the move up from the low right before the announcement. If these levels firmly hold the bulls should remain happy.
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| EURUSD shoots up on central bank action Posted: 30 Nov 2011 05:46 AM PST
The EURUSD has surged higher on the back of the central banks coordinated action to boost liquidity. The price has moved above the 200 hour MA (green line in the chart above) and topside trendline resistance at the 1.3422 level. The next key target comes in at the 1.3511 level. This is the 50% of the move down from the November 11th high to the low reached on November 25th. Looking at the 5 minute chart below, the price surge corrected to the 38.2% of that unsustainable leg higher. The holding of that level keeps the bulls in charge. However, with the 1.3511 level looming above (50% from the hourly chart above), the market may battle between the levels. There is incentive to take profit against the 1.3511 level as traders can initiate new buy stops above that should it break higher. If the market holds resistance against 1.3511, the subsequent move lower provides an opportunity to buy lower against support. Define risk. Limit risk. Accept risk especially in volatile markets.
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| Posted: 30 Nov 2011 05:39 AM PST Domestic Product (MoM): Survey: 0.3% Actual: 0.2% Prior: 0.3% Revised: 0.4% Gross Domestic Product (YoY): Survey: 2.7% Actual: 3.0% Prior: 2.4% Industrial Production Price Index MoM: Survey: 0.3% Actual: -0.1% Prior: 0.4% Revised: 0.5% Raw Materials Price Index: Survey: 1.0% Actual: -1.2% Prior: 1.4% |
| Central Banks coordinate to add liquidity to the market Posted: 30 Nov 2011 05:38 AM PST
At the end of the calendar year, there are often liquidity problems. Banks are looking to window dress their balance sheets. There are issues with amount of float in the system. It is traditionally a time where if you are at a bank, you want to cover your shortfall early(banks tend to need to borrow as they make loans an borrow short term). With all the issues in the market and the tightening of credit conditions overall (let alone for those institutions that are in more trouble than others), this year has the potential to be even more difficult to obtain the necessary funding. The action today will increase the spigot for liquidity. One also has to remember that the ECB is buying longer term debt of Italy and Spain and draining the same amount. That draining if in the shorter end would tighten the liquidity conditions where it is likely to be most tight. This is why some saying the ECB needs to do more traditional QE whereby they buy bonds and do not drain liquidity. |
| Nonfarm Productivity and Unit Labor Costs Drop Slightly Posted: 30 Nov 2011 05:33 AM PST Nonfarm Productivity: Survey: 2.5% Actual: 2.3% Prior: 3.1% Unit Labor Costs: Survey: -2.1% Actual: -2.5% Prior: -2.4% |
| Bobbys Corner-Open Market-November.30.2011 Posted: 30 Nov 2011 05:27 AM PST
The euro dropped early in the overnight session (1.3258). During this time comments by a representative from Peoples Bank of China regarding a cut in reserve ratios set by the government, this sent the Shanghai index down 3.3%. Then comments by a Italian regulator that there is a risk of a euro breakup if the ECB does not change it’s role, and get more deeply involved in the Euro Zone’s financial crisis caused the single currency to loose steam. Irish PM Kenny stated that he sees “real and present danger” from the current EU crisis. He feels that the crisis is spiraling out of control-and European leaders must make decisive actions and decisions. ADP payrolls printed at 206K-much better than the 130K the street had predicted. Today we have Chicago PMI data-and the Beige Book will be released at 2PM this afternoon. HAVE A GREAT DAY & GOOD LUCK
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| US Unit Labor Costs and Nonfarm Productivity To Be Released at 8:30AM Posted: 30 Nov 2011 05:19 AM PST
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| Canada GDP, Raw Materials & IPPI Data Due at 8:30AM Posted: 30 Nov 2011 05:17 AM PST
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| US Employment Change Improves to 206K vs Prior of 110K and Survey of 130K Posted: 30 Nov 2011 05:16 AM PST Employment change drastically changes here most likely to all of the seasonal hires. |
| US Employment Change Data Due at 8:15AM Posted: 30 Nov 2011 04:58 AM PST
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