Forex Market Updates & Commentary

Russia has no plans to purchase EFSF debt: Russia central bank head
Bobbys Corner-Open Market-November.18.2011
EURUSD test 50% of the weeks range and finds profit takers
Canadian CPI (m/m) 0.2%; better than expected.
Draghi says gov’ts must implement EFSF reforms quickly
ECB’s Makuch says ECB will do what is needed regarding debt crisis
11-18 Economic Calendar
China Sets Yuan Reference Rate @ 6.3548 vs USD
usd/hkd trying to break out of a hourly channel.
USDSGD Moves Off 76.4%
usd/sgd again testing the 23.6% retracement level
Triangle Continues to Hold
USDHKD Pushing 61.8%
Weekly Wrap up Friday at 11:00 AM with Shawn Powell “What a week its been.”

Russia has no plans to purchase EFSF debt: Russia central bank head

Posted: 18 Nov 2011 06:41 AM PST

Bobbys Corner-Open Market-November.18.2011

Posted: 18 Nov 2011 06:15 AM PST

Good Morning:

The ECB was back in the markets buying Spanish and Italian debt again-but at the same time newly appointed ECB chief Mario Draghi reiterated that the ECB will not become the lender of last resort to the Euro Zone-let’s wait and see what happens.

The GBP gained against the USD-even after comments from the Bank of England that with the weak UK economy-they may consider additional monetary stimulus. The BOE will most probably start to reevaluate this in the beginning of 2012-after they are able to evaluate the data from 2011.

Italian 10 year bonds are still trading below the 7% handle-which is a very significant psychological level.

World equity markets were and are lower-Dow Futures are higher at this time.
Oil, Gold and Silver are all higher.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

EURUSD test 50% of the weeks range and finds profit takers

Posted: 18 Nov 2011 05:14 AM PST

The EURUSD surged higher today on the back of news that Germany may succumb to the idea of ECB funneling money to IMF who would funnel money to the needy nations of the EU. The price has stalled at the 50% of the weeks trading range. The 200 hour MA is near the level as well. Now the market will be looking for the 1.3573 area to hold support . This is the 38.2% of the last leg higher in the pair. If the level holds the bulls will remain in full control. If not the market is still bullish but some of the upside momentum will be lost.

Canadian CPI (m/m) 0.2%; better than expected.

Posted: 18 Nov 2011 04:12 AM PST

Core CPI was 0.3% vs. the 0.2% forecast and 0.5% prior reading.

Draghi says gov’ts must implement EFSF reforms quickly

Posted: 18 Nov 2011 01:20 AM PST

* growth will weaken in most advanced economies

* downside risks to Euro area growth have increased; weaker growth will moderate inflation

* stable prices major contribution to support growth

* ECB is fully independent; ECB can lose credibility very quickly

ECB’s Makuch says ECB will do what is needed regarding debt crisis

Posted: 17 Nov 2011 11:43 PM PST

* situation in Italy is really serious; confident new Italian gov’t will implement reforms

* Euro is a stable cuurency

Eur/Usd up marginally to 1.3525.

11-18 Economic Calendar

Posted: 17 Nov 2011 08:42 PM PST

China Sets Yuan Reference Rate @ 6.3548 vs USD

Posted: 17 Nov 2011 07:12 PM PST

usd/hkd trying to break out of a hourly channel.

Posted: 17 Nov 2011 07:12 PM PST

usd/hkd trying to break out this hourly channel but failed to do so.

USDSGD Moves Off 76.4%

Posted: 17 Nov 2011 07:11 PM PST

On the chart below we see the USDSGD bid yesterday pushed the pair to the 79.4% retracement of the October move where the pair found some resistance and the USD bid dissipated. Early in the Asian session we see the USD offered, however this could be short-lived and the rally could resume.

usd/sgd again testing the 23.6% retracement level

Posted: 17 Nov 2011 07:09 PM PST

usd/sgd again testing the 23.6% retracement level on the weekly chart.

Triangle Continues to Hold

Posted: 17 Nov 2011 04:18 PM PST

The massive fluctuations in the USDCNH pair have continued to be contained the by the triangle below. Yesterdays test of trendline resistance held again even as the Chinese set a weaker Yuan. A break of the triangle higher might not lead back to the 200 day mavg as pressure from the US in the form of rhetoric continues for the Chinese to appreciate their currency.

USDHKD Pushing 61.8%

Posted: 17 Nov 2011 04:10 PM PST

The USDHKD pair has pushed higher on the back of continued risk off sentiment and has finally closed above the 100day moving average and is now pushing the 61.8% retracement of the move lower from late September. The pair could trade below the 61.8% until the next leg of the USD rally.