{"id":13275,"date":"2010-09-23T09:14:08","date_gmt":"2010-09-23T13:14:08","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=13275"},"modified":"2010-09-23T09:14:08","modified_gmt":"2010-09-23T13:14:08","slug":"forex-daily-market-commentary-117","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/09\/23\/forex-daily-market-commentary-117\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

By GCI Forex Research<\/strong><\/p>\n

Fundamental Outlook at \t\t\t0800 GMT (EDT + 0400)<\/span><\/strong><\/p>\n

<\/strong><\/p>\n

<\/strong><\/p>\n

USD<\/span><\/em><\/strong><\/p>\n

The dollar continued to weaken in the wake of the FOMC as markets \t\t\tpriced in the prospect of a further round of quantitative easing \t\t\tlater this year. Lower US yields continued to weigh on USDJPY. EUR \t\t\tand GBP continued top rise vs. the USD as did AUD and NZD. The \t\t\texception was CAD, which lost some ground to the USD today as a \t\t\tresult of a weaker than expected Canadian retail sales result. \t\t\tEURUSD traded 1.3271-1.3441, while USDJPY traded 84.27-85.18. US \t\t\tequity markets closed lower for the second consecutive day following \t\t\tTuesday’s FOMC announcement.<\/p>\n


\nEUR<\/span><\/em><\/strong><\/p>\n

The Portuguese bond auction was relatively firm. Bid to cover ratios \t\t\tcame in at 4.9x and 3.5x for the 10 year and 4 year bonds \t\t\trespectively, though the yields were both higher. Spread of Ireland \t\t\tand Portugal over bunds had already risen sharply ahead of the \t\t\tauction, clearly showing that even though investors are still \t\t\twilling to fund these economies, the challenges remain immense.
\nIndustrial new orders were much weaker than expected at -2.4%m\/m \t\t\t(cons. -1.4%m\/m) and +11.2%y\/y (cons. 16.2%). Euro-zone consumer \t\t\tconfidence for September was unchanged from its August reading at \t\t\t-11. Ahead Thursday, Germany’s PMI for manufacturing and Services \t\t\tare released, as well as Euro-area PMI services and manufacturing. \t\t\t \t\t\tThe German Ifo will be released on Friday.
\n JPY<\/span><\/em><\/strong><\/p>\n

BoJ Board Member Miyao said that the BoJ would continue to provided \t\t\tample liquidity but has no preset idea about future policy. Miyao \t\t\tsaid that an increase in the pace of monthly JGB buying is one \t\t\toption. While the BoJ has traditionally been less then enthusiastic \t\t\tin its assessment of the benefits of past episodes of quantitative \t\t\teasing, intriguingly Miyao said that how the policy is assessed \t\t\ttoday could differ from how it was assessed in the past. This is the \t\t\tclearest sign yet that further BoJ easing could be on the cards in \t\t\tthe near term.
\nOn the back of the falling dollar, PM Kan reiterated Japan’s active \t\t\tplans for intervention in the currency markets, stating that \t\t\tintervention would be unavoidable” if the market pushes JPY \t\t\tstronger. It appears that policymakers have set a clear floor for \t\t\tthe currency which will be habitually maintained if and when it is \t\t\tbreached.
\n GBP<\/span><\/em><\/strong><\/p>\n

BoE minutes fell broadly in line with expectations, showing an 8-1 \t\t\tvote split, with Andrew Sentence again calling for a rate hike. \t\t\tSentence effectively revealed this information in an interview last \t\t\tnight where he stated that the UK should “gradually move interest \t\t\trates up in a slow way which will not destabalise business \t\t\tconfidence”.
\n CAD<\/span><\/em><\/strong><\/p>\n

Canada’s retail sales for July came in below expectations, falling \t\t\t0.1% m\/m at the headline and 0.4% m\/m for the ex auto figure. This \t\t\tweighed on CAD vs. the USD during the trading session, but was not \t\t\tenough to break the current CADUSD trading range.
\n
\nTECHNICAL OUTLOOK<\/span><\/strong><\/p>\n


\n<\/span><\/strong> EURUSD resistance at 1.3509.
\nEURUSD NEUTRAL Climb through 1.3334 has scope for 1.3509 and 1.3818 \t\t\tnext. Near-term support comes in at 1.3268 ahead of 1.3159.
\nUSDJPY NEUTRAL Pullback from 85.93 targets 84.05 ahead of 82.88.
\nGBPUSD BULLISH Momentum is positive; move above 1.5729 would expose \t\t\t1.5999 key high. Support holds at 1.5297 holds.
\nUSDCHF BEARISH Break through 0.9933\/18 region reinstates the bearish \t\t\ttrend. Next support lies at 0.9786 ahead of 0.9625. Resistance at \t\t\t0.9983 intraday high.
\nAUDUSD BULLISH Move above 0.9850 would open up the way towards \t\t\t1.0211 Fibonacci level. Near-term support is at 0.9442 ahead of \t\t\t0.9309.
\nUSDCAD NEUTRAL Choppy action holds between 1.0108 and 1.0509.
\nEURCHF NEUTRAL While resistance is at 1.3391 ahead of 1.3482, \t\t\tsupport comes in at 1.2991.
\nEURGBP NEUTRAL Continues to rally towards 0.8609, with scope for \t\t\t0.8774 next. Support defined at 0.8459 ahead of 0.8390.
\nEURJPY NEUTRAL Break of 114.74 would put odds in favour of positive \t\t\ttone. \t\t\t \t\t\tNext resistance at 116.68. Support holds at 110.66 ahead of 107.73.<\/p>\n

Forex Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI Financial Ltd<\/strong><\/a>.<\/strong><\/p>\n

GCI Financial Ltd (\u201dGCI\u201d) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (\u201dForex\u201d) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (\u201dCFDs\u201d) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.<\/p>\n

DISCLAIMER: GCI\u2019s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n","protected":false},"excerpt":{"rendered":"

The dollar continued to weaken in the wake of the FOMC as markets priced in the prospect of a further round of quantitative easing later this year. Lower US yields continued to weigh on USDJPY. EUR and GBP…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13275","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=13275"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13275\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=13275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=13275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=13275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}