Forex Market Updates & Commentary

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• EURUSD tests the day’s high at 1.3485
• Sarkozy/Merkel announce proposal ideas
• Durable Goods orders were revised lower
• US Data Falls
• Forex Basics webinar TODAY: Get the Big Picture in Trading at 4:00 PM
• The Forex Week Ahead for December 5th Week
• NY Morning Forex Commentary for Dec 5th 2011
• US ISM and Factory Orders Data Due at 10AM
• Bobbys Corner-Open Market-December.5.2011
• Stocks higher, Gold down, Sarkozy/Merkel meet, Italy new budget
• UK Services PMI
• Eurozone Final Services PMI
• Week ahead in Forex Trading with Greg Michalowski and Shawn Powell 9:30 AM
• 12-5 Economic Calendar
• Hong Kong purchasing managers index 48.7 vs. a 49.0 reading in October.

EURUSD tests the day’s high at 1.3485 Posted: 05 Dec 2011 07:32 AM PST The Merkel/Sarkozy press conference gave the EURUSD a boost higher. The correction off the initial move higher retraced to the midpoint of the Friday/Monday range and the ability to hold the level has the pair back up testing the high at 1.3485. A move above this high is needed to propel the pair higher toward the Thursday hae at hte 1.3520 level. The 1.3546 was the high on Friday. This level tested resistance on the daily chart (see chart below).

Sarkozy/Merkel announce proposal ideas Posted: 05 Dec 2011 07:18 AM PST The EURUSD got a boost higher on the back of a joint plan by Germany’s Merkel and France’s Sarkozy. The plan will be sent to the EU’s Rompuy on Wednesday so it can be addressed at the EU leaders meeting on Friday. Highlights: The plan will involve a modification of EU treaty – ideally for all 27 members They propose automatic sanctions on deficits over 3% Agreed on private sector contributions in future bailouts They want a budget balancing rule across the Eurozone They would like the ESM brought forward to 2012 from 2013 Leaders will hold monthly summits in Brussels Eurobonds are not a solution to the crisis Summit on Thursday/Friday must gain credibility Debt limits are not possible in current treaty. They need that changed Merkel: Rejects Eurobonds  but ESM should make Eurozone sovereign debt a safe investment Sarkozy: Wants severe fiscal rules in all Euro zone countries Wants agreement to be concluded by March 2012 Voluntary Greek haircut was a one off for Greece ESM will be based on IMF methods. They will act like IMF in difficult cases. Looking on how to use EFSF resources with IMF They acknowledge that they may have less resources in the EFSF than they would like They will discuss whether the German/Franco proposal are for the top 17 or all 27 EU members

Durable Goods orders were revised lower Posted: 05 Dec 2011 07:08 AM PST The Durable Goods Orders were revise higher in the Factory Orders report.  The MoM headline number came in at -0.5% vs -0.7% originally reported. The Ex Transportation came in at +1.1% vs _0.7% last.

US Data Falls Posted: 05 Dec 2011 07:02 AM PST Manufacturing Composite:  Survey: 53.8   Actual: 52.0   Prior: 52.9 Factory Orders:    Survey: -0.3%   Actual: 0.4%   Prior: 0.3%   Revised: -0.1%

Forex Basics webinar TODAY: Get the Big Picture in Trading at 4:00 PM Posted: 05 Dec 2011 06:56 AM PST Forex Basics webinar TODAY: Get the Big Picture in Trading at 4:00 PM with Forex trainers Shawn Powell and Jason Galano Register now for the 4:00 PM Training Class

The Forex Week Ahead for December 5th Week Posted: 05 Dec 2011 06:28 AM PST The Forex Week Ahead (PDF)

NY Morning Forex Commentary for Dec 5th 2011 Posted: 05 Dec 2011 05:20 AM PST

US ISM and Factory Orders Data Due at 10AM Posted: 05 Dec 2011 05:13 AM PST

Bobbys Corner-Open Market-December.5.2011 Posted: 05 Dec 2011 05:00 AM PST Good Morning: The euro was stronger against the JPY and USD to start the week.  The Italian government approved a new deficit reduction plan ahead of this week’s European summit to discuss the Euro Zone’s sovereign debt issues.  The new plan will include new taxes on luxury items, delay in state employee’s retirement age, and a levy on first time home buyers. The Euro strength came on the heels of a proposal for ECB loans to be channeled through the IMF. The proposal is loaded with problems of it’s own.  Many feel that the IMF is just not big enough to sustain large financing for the Euro Zone.  Also, there is concern that members of the undeveloped member countries will feel that too much of the IMF’s funds and resources will be diverted to the Euro Zone. World equity markets are higher-as are US Futures. Oil is slightly higher-but Gold is lower. HAVE A GREAT DAY & GOOD LUCK

Stocks higher, Gold down, Sarkozy/Merkel meet, Italy new budget Posted: 05 Dec 2011 04:23 AM PST S&P Futures: +14 DJ Futures: +125 Nasdaq:+24 Dax: +1.22% FTSE: +0.51% CAC: +1.21% Gold: -7.5 Oil: +0.64 They are calling this week a make or break week for the EURO.  The EU leaders will meet this week to talk about giving the EU more control over budgets.  In return there would be more bond market intervention.  Merkel and Sarkozy will meet prior to the meeting to discuss the ideas for discussion.  Meanwhile Italy’s Monti presented a new budget (30 billion cut).  A tax on luxury items,delayed retirement and a property levy on first homes are the main areas which will help the budget shortfall. Not included were  asset sales as a way to lower deficits.  This inclusion by Greece and in the past by Italy have simply been talk with little substance behind it.  It is tough to sell assets in this type of economic environment. US Factory Orders due out at 10 AM -0.2% expected vs +0.3% last month. Durable Goods, which were released a on November 23rd and showed a -0.7% decline (ex Trans +0.7) is part of that report and can be revised in this report.  Also at 10 AM ISM Non Manufacturing PMI is expected to come in at 53.6 vs 52.9.  Feds Evans speaks at 12:10

UK Services PMI Posted: 05 Dec 2011 01:35 AM PST UK Services PMI came in at 52.1, stronger than the 50.6 expected. Not much affect to the GBP as the currency had strengthened prior to release, possibly a leak of this data causing the pre-emptive move. Gbp/Usd currently trades at 1.5645.

Eurozone Final Services PMI Posted: 05 Dec 2011 01:03 AM PST E/Z Final Services PMI came in at 47.5, weaker than the 47.8 expected. Eur/Usd is off about 10 points to 1.3435.

Week ahead in Forex Trading with Greg Michalowski and Shawn Powell 9:30 AM Posted: 04 Dec 2011 09:26 PM PST Week ahead in Forex Trading morning webinar with FXDD Chief Currency Analyst Greg Michalowski and Forex Trader Shawn Powell 9:30 AM Register now

12-5 Economic Calendar Posted: 04 Dec 2011 08:55 PM PST

Hong Kong purchasing managers index 48.7 vs. a 49.0 reading in October. Posted: 04 Dec 2011 06:54 PM PST This is the fourth consecutive month that conditions have deteriorated in Hong Kong; fell at the third sharpest rate in 2 1/2 years. Output prices  have reduced in an effort to thwart a contraction in demand and stimulate sales as input prices continued to rise. HSBC Economist, Donna Kwok, commented ” While business activity in Hong Kong is still slowing, it hasn’t collapsed”.

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