{"id":14030,"date":"2010-10-14T08:33:16","date_gmt":"2010-10-14T12:33:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14030"},"modified":"2010-10-14T08:33:16","modified_gmt":"2010-10-14T12:33:16","slug":"forex-daily-market-commentary-132","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/10\/14\/forex-daily-market-commentary-132\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

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

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

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

The dollar weakened across the board.during the Asia session, with \t\t\tthe latest bout of weakness brought on by a further round of \t\t\ttightening by the Monetary Authority of Singapore. The euro and the \t\t\tyen made strong gains, and the Australian dollar approached, but did \t\t\tnot reach, parity before retreating. EURUSD traded 1.3949-1.4094, \t\t\tUSDJPY traded 81.17-81.90, and AUDUSD traded 0.9892-0.9982.
\nAsia stocks rallied through the session, with the Nikkei 2.1% higher \t\t\tat the time of writing, despite the stronger yen. Richmond Fed \t\t\tPresident Lacker said inflation is now on target as far as he was \t\t\tconcerned. He added that he would probably not support more easing \t\t\tif economic conditions remain as they are. Lacker does not currently \t\t\thave an FOMC vote, and is not due to receive one until 2012.There \t\t\twere no top-tier 1 US economic data releases. However, import prices \t\t\tfell -0.3% (cons: -0.2%) in September after a +0.6% gain in August. \t\t\tJobless claims due later will likely be the key focus today, ahead \t\t\tof Fed Chairman Bernanke’s speech on Friday entitled “Monetary \t\t\tPolicy Objectives in a Low Inflation Environment”.
\nEUR<\/span><\/em><\/strong><\/p>\n

ECB Governing Council Member Nowotny said that the ECB’s sovereign \t\t\tbond buying program has been effective in the past when it was \t\t\tneeded, and should not be disbanded too soon, as it “makes sense” to \t\t\tuse it as a “safety belt”. His remarks come after fellow Governing \t\t\tCouncil Member Weber yesterday called for the program to be \t\t\tdiscontinued.
\nNowotny also warned that unilateral steps on FX matters could be \t\t\tdetrimental to the world economy. At 7.9% (cons. 7.5%, prev. 7.1%) \t\t\tand 1.0%, cons. 0.8%, prev. 0.0%) industrial production for August \t\t\twas released above expectations.
\n JPY<\/span><\/em><\/strong><\/p>\n

Finance Minister Noda repeated that Japan is closely watching FX \t\t\tmoves. Economics Minister Kaieda said that the stronger yen is \t\t\tdriving down sentiment significantly.
\n GBP<\/span><\/em><\/strong><\/p>\n

At 5.3k (cons. 5.0k, prev. 2.3k) claimant count in September rose \t\t\tbroadly in line with market expectations. Average weekly earnings \t\t\twere released at 1.7% (cons. 1.6%, prev. 1.5%). According to our \t\t\teconomist the only notable news is that labour earnings are \t\t\tgradually picking up. Latest data will unlikely have any major \t\t\timpact on the MPC.
\nBoE MPC member Sentance maintained his hawkish stance, saying that \t\t\tgradual rate increases constituted the right policy and would not \t\t\tendanger a pick-up in the economy.<\/p>\n


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

In Switzerland, September producer and import prices fell 0.1% m\/m \t\t\t(cons. 0.1%m\/m) and rose 0.3% y\/y (cons. 0.4%, prev. 0.5%). \t\t\tAccording to our economists lower import prices have been key in \t\t\tdriving the headline reading lower. In Sweden, and according to the \t\t\tSwedish Public Employment Service, the unemployment rate rose in \t\t\tSeptember to 8.3% from 8.1% in August.
\n
\nTECHNICAL OUTLOOK<\/span><\/strong><\/p>\n


\n<\/span><\/strong> EURUSD clears 1.4045.
\nEURUSD BULLISH Recovery through 1.4045 exposes 1.4194 and 1.4371 \t\t\tFibonacci resistance. Support at 1.3775.
\nUSDJPY BEARISH The pair targets 79.75 with scope for 77.91 next. \t\t\tResistance holds at 83.03 ahead of 83.99.
\nGBPUSD BULLISH Move above 1.6018\/69 would trigger further gains \t\t\ttowards 1.6276. Support at 1.5670 ahead of 1.5503.
\nUSDCHF BEARISH Outlook is bearish; break below 0.9500 exposes \t\t\t0.9225. Resistance at 0.9729 ahead of 0.9918 breakout low.
\nAUDUSD BULLISH Pressure on 1.000 psychological resistance; a break \t\t\there would expose 1.0166. Support at 0.9834 ahead of 0.9709 reaction \t\t\tlow.
\nUSDCAD BEARISH Sharp decline targets 0.9931 ahead of 0.9820. \t\t\tResistance at 1.0106.
\nEURCHF BULLISH Upside potential held at 1.3494 ahead of 1.3665. \t\t\tInitial support lies at 1.3265 ahead of 1.3072.
\nEURGBP BULLISH Break of 0.8808 exposes 0.8894 and 0.9039. Support \t\t\tholds at 0.8689 ahead of 0.8563.
\nEURJPY BULLISH Clearance of 113.26 exposed 110.66 support, but \t\t\toverall outlook is bullish with resistance at 115.68 ahead of 116.68 \t\t\tFibonacci resistance.<\/p>\n

Forex Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI Financial Ltd<\/strong><\/a>.<\/strong><\/span><\/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 weakened across the board.during the Asia session, with the latest bout of weakness brought on by a further round of tightening by the Monetary Authority of Singapore. <\/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-14030","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14030","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=14030"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14030\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}