Forex Market Updates & Commentary

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• USDCHF is testing the 200 hour MA at the 0.9383 level
• US Congress Passes Two-Month Payroll Tax Cut Extension
• The EURUSD is below the 200 hour MA and trendline
• Home sales as expected. 7 month high. Months supply of homes falls
• US New Home Sales Data Stays According to Forecast of 315, Revision Higher
• Moody’s expects Italy GDP 0.2% in 2012
• ECB 3 year loans will NOT end the threat of downgrades for banks:S&P Executive
• The dollar is down in early NY trading.
• US Durable Goods Orders Much Higher, Income and Spending Take a Hit
• CANADA GDP LOWER 0.0% vs 0.1%
• The NY Morning Review and Preview for December 23rd
• British Bankers Assoc. mortgage approvals slightly weaker than expected
• 12-23 Economic Calendar
• usd/sgd staying range bound in this wedge.
• usd/cnh broke through support level.

USDCHF is testing the 200 hour MA at the 0.9383 level Posted: 23 Dec 2011 07:12 AM PST The USDCHF is testing the 200 hour MA at the 0.9383 level (green line in the chart above).  The next target on a break of this key level would look toward the high for yesterday at the 0.9395 level. Above that and the 0.94297 which is the 61.8% of the move down from the December 14th high.

US Congress Passes Two-Month Payroll Tax Cut Extension Posted: 23 Dec 2011 07:06 AM PST

The EURUSD is below the 200 hour MA and trendline Posted: 23 Dec 2011 07:04 AM PST The price of the EURUSD has moved below the 200 hour MA and channel trendline support at the 1.3045 area.  The next target is the low from yesterday at 1.3016. A move above the 1.3045 level should solicit buying as intraday scalpers play the technical levels.

Home sales as expected. 7 month high. Months supply of homes falls Posted: 23 Dec 2011 07:01 AM PST The Month Supply of homes comes in at 6 months, down from 6.2 months last month and 6.8 months in July

US New Home Sales Data Stays According to Forecast of 315, Revision Higher Posted: 23 Dec 2011 07:01 AM PST

Moody’s expects Italy GDP 0.2% in 2012 Posted: 23 Dec 2011 06:12 AM PST …and 0.8% in 2011.

ECB 3 year loans will NOT end the threat of downgrades for banks:S&P Executive Posted: 23 Dec 2011 05:58 AM PST The ECB money will be taken into accont in analysis when they resolve creditwatchness

The dollar is down in early NY trading. Posted: 23 Dec 2011 05:36 AM PST

US Durable Goods Orders Much Higher, Income and Spending Take a Hit Posted: 23 Dec 2011 05:32 AM PST Durable Goods Orders:   Survey:  2.2%    Actual: 3.8%    Prior: -0.7%   Durables Ex Transportation:   Survey: 0.4%   Actual:  0.3%   Prior:  0.7%   Revised:  1.5% Personal Income:   Survey: 0.2%     Actual:  0.1%    Prior:  0.4%    Personal Spending:   Survey: 0.3%    Actual: 0.1%  Prior: 0.1%

CANADA GDP LOWER 0.0% vs 0.1% Posted: 23 Dec 2011 05:30 AM PST

The NY Morning Review and Preview for December 23rd Posted: 23 Dec 2011 04:37 AM PST Stocks and Commodities Key events and releases Pre NY US Stock markets are up in premarket trading. The overseas markets are also higher.  Oil is up slightly while Gold is down in early NY trade. UK BBA Loans for House Purchases for November 34738 vs 35400 expectations.  Last month the purchases were revised lower to 35196 vs 35295 originally reported Index of Services MoM came in lower than expectations with a declineo of -0.7% vs-0.1% expected. The prior month was revised lower to 0.0% from +0.1%. The SNB said they are ready to reinforce the Franc ceiling with determination at the 1.2000 level versus the EURO.   In addition, the central bank said they there is no risk of inflation now and that they are ready to take further measures at any time if the economic outlook and risk of deflation so requires.  In November the Swiss CPI fell by -0.2% vs expectations of a 0.1% gain. The YoY fell to -0.5% versus -0.1% the prior month. Moody’s keeps US rating at Aaa with the outlook negative on Federal Government debt ratio and potential for interest cost to increase. The rating agency kept Canada sovereign rating at Aaa with the outlook stable. US Lawmakers reached on deal on the Tax Break. House Speaker Boehner succumbed to pressure to extend the payroll tax break for another 2 months. The US dollar is down slightly against most major currencies in quiet trading versus the 5 PM close yesterday.  The dollar is weakest against the AUD (decline of 0.28%) and strongest against the GBP (Unchanged currently). Key Events and Releases in NY Session 8:30 AM ET, US Durable Goods Orders for November, +2.2% vs -0.5% last month.  Ex Transportation Est +0.4% vs +1.1% last month 8:30 AM ET, US Personal Incom for November, Est +0.2% vs +0.4% last month, Personal Spending +0.3% vs +0.1% last month 8:30 AM ET, US PCE Deflator for November, YoY 2.7% vs 2.7% last month, MoM 0.1% vs +0.1% last month 8:30 AM ET, Canada GDP for October +0.1% vs +0.2% last month, YoY 2.7% vs 3% 10:00 AM ET, New Home Sales for November, +315k vs +307K last month, MoM 2.6% vs 1.3% last month.  The months supply came in at 6.3 months last month. FXDD Scheduled Webinar’s for today  No Scheduled Webinars today. Shawn, Jason, James and Greg wish you all a Happy, Healthy and Peaceful Holiday

British Bankers Assoc. mortgage approvals slightly weaker than expected Posted: 23 Dec 2011 01:37 AM PST BBA  mortgage approvals came in at 34,700, weaker than the 36,300 expected. Gbp/Usd off slightly, trading at 1.5675.

12-23 Economic Calendar Posted: 22 Dec 2011 09:56 PM PST

usd/sgd staying range bound in this wedge. Posted: 22 Dec 2011 05:13 PM PST usd/sgd staying range bound in this wedge, while we are in the holiday season.

usd/cnh broke through support level. Posted: 22 Dec 2011 05:10 PM PST usd/cnh broke through this support level at 6.3487.

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