Forex Market Updates & Commentary

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• ECB Constancio says Eurozone breakup unthinkable
• ECB Financial Stability report says global macro economic risk has increased
• EURUSD moves away from 100 hour MA
• ECB Draghi says economic environment remains a challenge
• The Forex Week Ahead
• Canada Wholesale Sales Show Positive Swing
• EURUSD rebounds from the news of Kim’s death
• EU may move on IMF loans without immediate UK support
• NY Forex Review and Preview
• Canada Wholesale Sales Data Due at 8:30AM
• Spanish PM Rajoy on the wires….
• Fitch says that Japanese economy should resume its recovery next year.
• China expresses confidence in N. Korea’s new leader Kim Jong Un, says confidence that cooperations with N. Korea will continue.
• According to the Bundesbank…..
• Italian trade balance -1.08 bln; worse than expected.

ECB Constancio says Eurozone breakup unthinkable Posted: 19 Dec 2011 08:05 AM PST Higher indication of credit crunch No plans to increase ECB capital further Public sector involvement should remain exception Demand for ECB 3 yr loans will be significant

ECB Financial Stability report says global macro economic risk has increased Posted: 19 Dec 2011 08:01 AM PST Could see a double dip recession in the worst case Contagion of sovereign debt crisis remain most pressing risk for financial stability in the Eurozone, EU and globally Risks to Eurozone increased considerably in H2 2011

EURUSD moves away from 100 hour MA Posted: 19 Dec 2011 07:52 AM PST The EURUSD has moved below the 1.3024 level which is the 100 hour MA.  The move below this level opens the door for a test of the 1.3002. This level was the low from earlier today and also a low level from Friday.  Below, the 1.2988 level is trendline support that has 3 separate tests over the last 4 trading days.  I would expect to see intraday dip buyers against each levels as quiet holiday trading is most likely.

ECB Draghi says economic environment remains a challenge Posted: 19 Dec 2011 07:44 AM PST ECB has taken a number of steps to provide price stability Intensified financial mkt tensions continue to dampen Eurozone activity Downside risk to economic outlook To recover very gradually in 2012 Risk to inflation is broadly balanced New liquidity measures should mitigate strains of credit to firms and households

The Forex Week Ahead Posted: 19 Dec 2011 06:27 AM PST

Canada Wholesale Sales Show Positive Swing Posted: 19 Dec 2011 05:33 AM PST Wholesale Sales:   Survey: 0.1%   Actual: 0.9%  Prior: 0.3%   Revised: 0.5% USD/CAD stays flat on the news.

EURUSD rebounds from the news of Kim’s death Posted: 19 Dec 2011 05:20 AM PST

EU may move on IMF loans without immediate UK support Posted: 19 Dec 2011 04:54 AM PST The EU was looking for 30 billion from the UK, but they may move ahead without their immediate support. This is according to sources.

NY Forex Review and Preview Posted: 19 Dec 2011 04:36 AM PST Stocks and Commodities DJI +53 S&P 7.3 Nasdaq +15 German Dax +1.21% France CAC 1.09% UK FTSE +0.31% China Shanghai Index -0.3% Nikkei Index -1.26% Gold, Unchanges Key events and releases pre NY North Korean’s Leader Kim dies New Zealand Business Confidence 16.9 vs 18.3 last month UK Rightmove House Prices -2.7% last month vs -3.1% last month Property Prices in China drop for the 2nd month. Down 0.17% after a 0.13% in October Key Events and Releases in NY Session 8:30 AM ET, Canada Wholesale Sales MoM for October, Estimate +0.1% vs +0.3% last month 10 AM ET, NAHB Housing Market Index, Est 20 vs 20 Last month, High for year20, low 13 (June) 10:30 AM ET, ECB Draghi Speaks 11:00 AM ET, ECB Releases Financial Stability Review 12:30 PM ET, Feds Lacker speaks US Weekly Bill auctions 8:30 PM New Zealand plans to sell 91, 182 and 357 day bills (400 million) Webinar today at 9:30AM ET. The Forex Week Ahead with Greg Michalowski https://www1.gotomeeting.com/register/967720480  Tomorrow at 4 PM: The Traders Course with Greg Michalowski. Lesson 3: The Rules for your Forex Trading.  Join me as I continue the series with the Rules that need to be followed to mission.  https://www1.gotomeeting.com/register/710590145

Canada Wholesale Sales Data Due at 8:30AM Posted: 19 Dec 2011 04:30 AM PST

Spanish PM Rajoy on the wires…. Posted: 19 Dec 2011 03:37 AM PST Unemployment now close to 23%. Q4 growth will be negative according to current signs. 2011 deficit target may be surpassed. Looking for EUR 16.5 bln in 2012 budget savings. Government debt may reach 69% of GDP in 2011. Huge difficulties ahead, huge efforts needed. The first law the new government will approve is on budget stability. It is essential to improve fiscal framework.

Fitch says that Japanese economy should resume its recovery next year. Posted: 19 Dec 2011 03:12 AM PST

China expresses confidence in N. Korea’s new leader Kim Jong Un, says confidence that cooperations with N. Korea will continue. Posted: 19 Dec 2011 03:08 AM PST

According to the Bundesbank….. Posted: 19 Dec 2011 01:59 AM PST Still in talks about IMF loans with German government. Sees no urgency regarding bilateral IMF loans. Bilateral IMF loans are not obligatory for members. Willing to agree to bilateral IMF loan, but with conditions. Conditions include IMF submitting a formal request to governments. IMF has not asked for the loan yet.

Italian trade balance -1.08 bln; worse than expected. Posted: 19 Dec 2011 01:03 AM PST

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