Forex Market Updates & Commentary |  |
- EBA announces that capital shortfall of capital is 114.7 billion: Sources
- GBPUSD moves toward support at the 1.5591-99 area
- US Wholesale Inventories Turns Positive, Moves to 1.6% vs Prior of -0.1, Revsion Also Positive
- Draghi concludes press conference…EURUSD remains pressured
- Draghi says ECB will prepare to intervene for markets for EFSF
- EURUSD extends the trading range to the downside.
- Gold tests 50 and 100 day MA and moves higher
- ECB does not want to circumvent the treaty…
- Using the IMF as a channel is very complex: Draghi. EURUSD moves lower
- EURUSD has rallied on Draghi liquidity moves.
- Bobbys Corner-Open Market-December.8.2011
- ECB Draghi headline comments
- US Jobless Claims Released Better Than Expectations
- Canada New House Price Index Comes Out the Same at 0.2% vs Survey of 0.2%, and Prior of 0.2%
- EURUSD steps to the upside or downside
| EBA announces that capital shortfall of capital is 114.7 billion: Sources Posted: 08 Dec 2011 07:33 AM PST This is slightly higher than an estimate of 109 billion originally estimated.
The official results of the EBA findings are to be released at 12:00 ET/17:00 GMT According to sources, banks will have until January 20th to present recapitalization plans. The implementation of the plans must be carried out by the end of June 2012 |
| GBPUSD moves toward support at the 1.5591-99 area Posted: 08 Dec 2011 07:31 AM PST
The GBPUSD had moved below trendline, 100 hour MA (blue line), and 200 hour MA (green line in the chart above). The next key target is at the 50% of the move up from the November 25th low to the November 30th hig and trendline at the 1.5591-99 area. On the topside, if the price remains below the 1.5635-44 area, the bias remains to the downside for the pair.
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| US Wholesale Inventories Turns Positive, Moves to 1.6% vs Prior of -0.1, Revsion Also Positive Posted: 08 Dec 2011 07:00 AM PST |
| Draghi concludes press conference…EURUSD remains pressured Posted: 08 Dec 2011 06:40 AM PST Look for more consolidation now that Draghi is complete. The next key event will come out of the EU. It is clear from Draghi, that the ECB has it’s boundaries as per the treaty. The EU/IMF will be the focus from now on and comments from officials of each has the potential to influence the market. With the downgrade warnings, the pressure is on the EU members to react. However, it is sometimes easier said than done. As a result, the market will trade with increased anxiety. The range for the week has been extended with a new week low of 1.3311 and the high remaining at 1.3485. The 174 pip range is still narrow historically so corrections will be eyed to see if clues that sellers remain in control continue. The 38.2% of the days range comes in at the 1.3367 level.
This area is also where the trendline on the hourly chart was broken. A move above this level will not be welcomed by sellers/shorts (see chart below). If the price stays below this key level, traders will likely look for that extension lower. |
| Draghi says ECB will prepare to intervene for markets for EFSF Posted: 08 Dec 2011 06:30 AM PST They will act as agent for the EFSF. Buying bonds for EFSF won’t involve ECB Balance Sheet. So this is saying that the ECB will not conduct QE which is against the EU treaty. This reiterates comments made earlier as to the reluctance for the ECB to alter the terms of the EU treaty. |
| EURUSD extends the trading range to the downside. Posted: 08 Dec 2011 06:21 AM PST
The EURUSD has extended the trading range to the downside and looks toward the next target at the 1.3284/93 area. Below that the 1.3259 level which was the low from last week. |
| Gold tests 50 and 100 day MA and moves higher Posted: 08 Dec 2011 06:11 AM PST
Gold this week has tested the 50 day MA and today moved above the 100 day MA at the 1729. The price tested topside trendline resistance at the 1750 area and found some selling interest on the first test. Like the EURUSD it seems to be coiling for a move as it remains in a narrow trading range, contained by key technical levels. Look for a break above the trendline at 1750 to lead to a momentum move higher. ON the downside a mvoe below the 1702-1707 should solicit selling pressure.
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| ECB does not want to circumvent the treaty… Posted: 08 Dec 2011 06:09 AM PST This disappoints the market and is sending the EURUSD to test the lows for the week at the 1.3332 level. |
| Using the IMF as a channel is very complex: Draghi. EURUSD moves lower Posted: 08 Dec 2011 06:00 AM PST
This comment has sent the EURUSD to new lows for the day. The EURUSD is testing trendline support at the 1.3364 level. On a break to the downside, the next target will be the 1.3334-1.33394 level which is the 61.8% of the range since November 24th. Below that level is the 1.32845 and the 1.3259. The range for the current week remains narrow. The low at 1.3332 and the high at 1.3485. The 153 pips is the narrowest range for 2011. |
| EURUSD has rallied on Draghi liquidity moves. Posted: 08 Dec 2011 05:44 AM PST
The EURUSD has rallied on the back of the increased liquidity measures announced by the ECB. The price has moved above the trendline resistance and moved up to test the next target at yesterday’s high price. The price has rotated off that high and has moved toward the 38.2% of the days range (see chart below) at the 1.34277 level. The level is also near the trendline broken on the hourly chart above. Traders will be watching this level for clues. Stay above and the bulls remain in control. Move below and we are back in the range with a failed break.
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| Bobbys Corner-Open Market-December.8.2011 Posted: 08 Dec 2011 05:35 AM PST
Currency markets were fairly stable overnight as market participants awaited the ECB interest rate decision. The ECB did cut it’s benchmark interest rate 25 basis points, which was highly expected by analysts. The Bank of England left interest rates and their QE program unchanged. This was widly expected by market participants. The JPY traded stronger as nervousness over the European debt crisis is pushing demand for the safe have of Japan’s currency. Weekly US jobless claims were 381K-nice to see it below 400k. Equity markets were lower in Asia-but Europe is showing positive number now-as are US Futures. Oil is higher, as is Gold and Silver. HAVE A GREAT DAY & GOOD LUCK |
| Posted: 08 Dec 2011 05:33 AM PST
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| US Jobless Claims Released Better Than Expectations Posted: 08 Dec 2011 05:31 AM PST Jobless Claims: Survey: 395K Actual: 381K Prior: 402K Revised: 404K Continuing Claims: Survey: 3700K Actual: 3583K Prior: 3740K Revised: K EUR/USD Trading Higher on the news. |
| Canada New House Price Index Comes Out the Same at 0.2% vs Survey of 0.2%, and Prior of 0.2% Posted: 08 Dec 2011 05:30 AM PST |
| EURUSD steps to the upside or downside Posted: 08 Dec 2011 05:29 AM PST
The EURUSD is contained with the market unsure which direction it should move. The pair remains contained but has a number of key target levels above and below the current non trending range. The levels are outlined in the chart above. If the market extends to the upside or the downside, look for momentum past the numbered levels in a step by step process.. |
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