Forex Market Updates & Commentary

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• USDJPY tests 100 day MA at the 77.17 level
• GBPUSD also at weeks midpoint
• EURUSD tests midpoint of weeks range at 1.2969
• Spain Budget Deficit in 2011 Estimated 8% of GDP
• The NY Opening Review and Preview for December 30th 2011
• Bobbys Corner-Open Market-December.30.2011
• UK Nationwide HPI
• usd/cnh testing resistance.
• USD/HKD looking to make a full hourly retracement
• USD/CNH testing support @ 6.3381
• China HSBC final manufacturing PMI 48.7 vs 49.0 prior.
• Aussie private sector credit 0.3% as expected.
• South Korean CPI
• The NY End of Day Review and Preview for December 29th 2011
• EURUSD scoots sharply higher. No news as far as I can see.

USDJPY tests 100 day MA at the 77.17 level Posted: 30 Dec 2011 07:02 AM PST

GBPUSD also at weeks midpoint Posted: 30 Dec 2011 06:46 AM PST The GBPUSD is also up. This pair is up sharply today and like the EURUSD tests the midpoint of the weeks trading rangee at the 1.5525 level.  The 100 hour MA comes in at the 1.5542 level and this is the next upside target for the pair. Looking at the daily chart for the pair, the GBPUSD has spent the last month of trading moving up and down. Yesterday the pair moved below the November/December low and failed to develop the expected momentum.  When the price can not go down, it goes up and with liquidity conditions dried up, it has not taken much.  In addition, the weaker housing data out the UK today failed to lead to a lower move. As a result, the squeeze is on.

EURUSD tests midpoint of weeks range at 1.2969 Posted: 30 Dec 2011 06:43 AM PST The midpoint of the weeks range is being tested at the 1.2969 level.  Traders seem to be caught short and forcing the squeeze in the liquidity starved market.  The 100 hour MA is still a distance away (blue line in the chart above) at the 1.3002 level.  This along with the 61.8% of the weeks range at 1.2296 are the next upside targets for the pair.

Spain Budget Deficit in 2011 Estimated 8% of GDP Posted: 30 Dec 2011 05:45 AM PST Spains government says to temporarily raise taxes.

The NY Opening Review and Preview for December 30th 2011 Posted: 30 Dec 2011 05:24 AM PST

Bobbys Corner-Open Market-December.30.2011 Posted: 30 Dec 2011 05:09 AM PST Good Morning: The last day of trading for 2011 saw the Euro continue to stay weak.  The euro fell below 100 JPY for the first time since 2001. The weakness in the euro will continue as investors have  concerns over the regions debt crisis-and the regions ability to work through this crisis. Commodities are also looking to see their first drop since 2008-as copper,cotton and cocoa led the declines.  Concerns that the European debt crisis, and the slow down in China’s economy may slow demand for commodities. Asian equity markets were mixed-Europe is higher as are US Futures. HAVE A HAPPY AND HEALTHY NEW YEAR

UK Nationwide HPI Posted: 29 Dec 2011 11:19 PM PST UK Nationwide HPI m/m came in at -0.2%, weaker than the 0.2% expected. Gbp/Usd resides at 1.5415 in very quiet trading.

usd/cnh testing resistance. Posted: 29 Dec 2011 07:57 PM PST usd/cnh testing resistance at 6.3469.

USD/HKD looking to make a full hourly retracement Posted: 29 Dec 2011 07:09 PM PST It seems like the next stop for the pair is 7.76595, the low from December 2nd. After breaking trend line support on December 19th the pair has slowly traded slower; descending after breaking lower through the 61.8% line.

USD/CNH testing support @ 6.3381 Posted: 29 Dec 2011 07:01 PM PST Its been pretty quiet as every is ready to celebrate the new year. The pair is testing support here with the 38.2% as the downside target. If support holds, the 200 hour moving average becomes the target.

China HSBC final manufacturing PMI 48.7 vs 49.0 prior. Posted: 29 Dec 2011 06:54 PM PST

Aussie private sector credit 0.3% as expected. Posted: 29 Dec 2011 04:35 PM PST AUD firmer following the release.

South Korean CPI Posted: 29 Dec 2011 03:03 PM PST The South Korean Consumer Price Index came in a bit firmer than expected in December and the market had a muted reaction to the release.   CPI (MoM) – Survey:0.2%   Actual:0.4%   Prior:0.1% CPI (YoY) – Survey:4.0%   Actual:4.2%   Prior:4.2% Core CPI (YoY) – Actual:3.6%   Prior:3.5%

The NY End of Day Review and Preview for December 29th 2011 Posted: 29 Dec 2011 12:23 PM PST FXDD End of Day Sheet Dec 29 2011_eod

EURUSD scoots sharply higher. No news as far as I can see. Posted: 29 Dec 2011 09:00 AM PST The EURUSD just shot up with no news as far as I can see. The price has moved above the 1.2940/42 resistance and stops were ignited. Traders will be eyeing this level now for bias clues (down to 1.2936 = 38.2% of the leg higher). If the price can remain above this area, the upside can continue. IF the level gives way, there could be a sharp move back lower on the failed break. The liquidity conditions remain light and this may be contributing to the action just seen. Risk is increased when liquidity conditions are low.  The shorts in the market, just got an inkling of what could happen… quickly.

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