Forex Market Updates & Commentary

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• Hildebrand Says Thomas Jordan Leading SNB as Vice President
• EURUSD keeps the better tone after early NY fall, but remains contained
• AUDUSD looking to break higher. Above 200 hour MA and 38.2% retracement
• Mexico Consumer Prices Improve
• The Morning Forex Commentary for January 9th 2011
• Bobbys Corner-Open Market-January.9.2011
• Canada Building Permits Data Show Weaker Data
• SNB’s Hildebrand resigns from his post on the back of forex scandal
• Dollar falls overnight but recovers in early NY trade.
• ECBs Merkel on the Wires
• Germany Merkel speaking with Sarkozy. Major comments
• Canada Building Permits Data Due at 8:30AM
• German Ind. Production down 0.6% from prior month
• E/Z Sentix Investor Confidence improved over prior month
• Swiss retail sales

Hildebrand Says Thomas Jordan Leading SNB as Vice President Posted: 09 Jan 2012 06:56 AM PST

EURUSD keeps the better tone after early NY fall, but remains contained Posted: 09 Jan 2012 06:34 AM PST The EURUSD fell in early NY trade. Comments from Sarkozy and Merkel reminded the market of the Greek situation but after a fall to the midpoint of the days range (and the close from Friday at 1.2720)  the buyers came back in the market.  The price is above the corrective channel but has been stalling in front of earlier day highs. On the hourly, the price is still well below the 38.2% of the last week trend move lower at the 1.28221 level.   The high today moved into the consolidation range that prevailed before the US Unemployment report on Friday, but once in the area, the price stalled (consolidation range – yellow area in the chart above -is from 1.2762 to 1.2811).  The high off the low in the NY has come up to 1.2766.  If the shorts in the EURUSD are to be squeezed more, a move above the 1.2762 level willl need to hold.  Failure to develop trading volume above that level, will likely lead to longs selling as intraday up and down in the NY range become the focus.   A break below the 1.2720-25 area should increase the bearishness for the pair. Overall the trend move down last week is the dominant bias.  Buyers have shown some ability to keep the price up but is it enough? Not yet.

AUDUSD looking to break higher. Above 200 hour MA and 38.2% retracement Posted: 09 Jan 2012 06:12 AM PST The AUDUSD has moved above the 200 hour MA and now the 38.2% of the move down from last weeks high to low move. The 200 hour MA comes in at 1.0225 level  . Stay above that, and the price bias remains bullish. Move below and there could be some disappointment and liquidation of longs.   On Sunday night, the retail sales came out weaker at 0.0% vs 0.4% expected. This sent the pair lower but there has been a move higher with the improved EURUSD.  Looking for momentum.

Mexico Consumer Prices Improve Posted: 09 Jan 2012 06:00 AM PST Consumer Prices (MoM):    Survey:  0.74%         Actual: 0.82%           Prior:  1.08%            Consumer Prices (YoY):   Survey:  3.74%         Actual: 3.82%             Prior: 3.48%         Consumer Prices Core (MoM):   Survey:  0.49%         Actual: 0.51%           Prior:  0.32%

The Morning Forex Commentary for January 9th 2011 Posted: 09 Jan 2012 05:56 AM PST

Bobbys Corner-Open Market-January.9.2011 Posted: 09 Jan 2012 05:41 AM PST +Good Morning: The euro saw some strength as we start the new week.  With news that German Chancellor Merkel, and French President Sarkozy have met to discuss a plan to rescue the 17 nation single currency. Talks were held in Berlin, where Chancellor Merkel and President Sarkozy are looking to sort out new rules on fiscal responsibility by member nations.  they will be focusing on tighter budget controls, along with keeping the crisis from spreading more. The loonie dropped as the price of oil has started to drift lower.  With Canada as a major oil supplier (especially to the US) any move in the price of crude will cause concerns in Canada. Gold and silver are slightly higher-while oil is a touch softer at this time. Equity markets were mixed-while US Futures are higher at this time. HAVE A GREAT DAY & GOOD LUCK

Canada Building Permits Data Show Weaker Data Posted: 09 Jan 2012 05:31 AM PST Canada Building Permits:    Survey: -5.0%     Actual: -3.6%        Prior:  11.9%     Revised:  11.6%

SNB’s Hildebrand resigns from his post on the back of forex scandal Posted: 09 Jan 2012 05:28 AM PST As reported last week, the chairman of the SNB’s wife made large forex gains from taking a short position in the CHF prior to the announcement of a peg on the EURCHF by the SNB. The USDCHF has moved lower on the news announcement and approaches the 38.2% of the move up from the January 3rd low.

Dollar falls overnight but recovers in early NY trade. Posted: 09 Jan 2012 05:15 AM PST

ECBs Merkel on the Wires Posted: 09 Jan 2012 04:51 AM PST Says: ‘very close agreement’ between France, Germany Talks about making EFSF ‘more efficient’ ECB can help bolster on EFSF EU fiscal pact may be completed as soon as January 30 May be able to sign pact in Jan or Mar the latest Merkel and Sarkozy want Greece to stay in Euro EU ready to back Greek tranche if conditions met

Germany Merkel speaking with Sarkozy. Major comments Posted: 09 Jan 2012 04:50 AM PST Very close agreement between France/German Negotiations on fiscal compact are progressing Greece to stay in EUR Greece must reduce debt Greece must hold to October agreement Looking on how to speed up paying capital into ESM If no progress on Greece aid package by Greece, the next tranceh for Greece cannot be paid out Sarkozy says France will do better than targets on 2011 deficit cuts Plan to ask ECB to do all so that EFSF works as well as possible Wish fiscal pact talks to be concluded in coming days Need to stand committed to deficit reductions Need to introduce financial Transaction tax and set a good example ESM to start earlier – in July 2012 Merkel does not fear a downgrade No decision on raising VAT in France (Sarkozy) Private sector involvement neccesary but not enough for Greece The comments – especially the one referring to the next Greek tranche not being paid out – has the EURUSD back on the defensive.  The EURUSD has support at the close from Friday at the 1.2720 level.

Canada Building Permits Data Due at 8:30AM Posted: 09 Jan 2012 04:15 AM PST

German Ind. Production down 0.6% from prior month Posted: 09 Jan 2012 03:06 AM PST A decline of 0.5% was expected. Eur/Usd has given back some of its session gains as the pair trades at 1.2750.

E/Z Sentix Investor Confidence improved over prior month Posted: 09 Jan 2012 02:23 AM PST Sentix investor Confidence came in at -21.1, stronger than the -23.8 expected and -24.0 reading for prior month. Eur/Usd made a new session high of 1.2785, the pair currently trades at 1.2781.

Swiss retail sales Posted: 09 Jan 2012 12:22 AM PST Swiss retail sales y/y came in at 1.8%, stronger than the 0.6% expected. Usd/Chf is off about 5 points since release, trading at .9532.

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