{"id":14081,"date":"2010-10-15T08:59:18","date_gmt":"2010-10-15T12:59:18","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14081"},"modified":"2010-10-15T08:59:18","modified_gmt":"2010-10-15T12:59:18","slug":"forex-daily-market-commentary-133","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/10\/15\/forex-daily-market-commentary-133\/","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>
\nThe dollar steadied during the Asia session, having earlier clawed back some of the losses sustained after yesterday’s surprise tightening by the Monetary Authority of Singapore. EURUSD traded 1.4009-1.4088, and USDJPY 81.28-81.68. But the dollar is still weaker over the past several days as Fed easing expectations have intensified. Later today, the market is finally expected to hear Fed Chairman Bernanke’s thoughts on the subject of further easing. Investors are uneasy over whether Bernanke will explicitly support the idea and, if he is noncommittal, the dollar could find some further support. Boston Fed President Rosengren remains in favour of more easing, in the belief that it may help reduce unemployment. He said there is a low probability the US will have deflation and that he would not want to see even disinflation at this point. Jobless claims were higher than expected and the August trade deficit was wider. Consumer data is due later and the deadline for the semi-annual report from the Treasury Department on foreign exchange also falls due today.<\/p>\n

EUR<\/span><\/em><\/strong>
\nECB Executive Board Member Stark said that inappropriate currency movements are damaging to economic and financial stability, and it would be fatal if currency wars evolved into a race to devalue. He said the ECB would continue to buy government bonds for as long as necessary – his comments in sharp contrast to those of Governing Council Member Weber who recently called for the sovereign bond purchase program to be immediately disbanded. He warned again that individual banks cannot rely on continued ECB support measures for their refinancing needs.<\/p>\n

ECB Governing Council Member Bini-Smaghi said emerging market economies must gradually accept stronger currencies and current moves in the FX market are due to the weak dollar rather than a strong euro or yen.<\/p>\n

China’s FX regulator said the euro’s rise added approximately $80bn to China’s FX reserves between Q2 and Q3, purely due to valuation. This reveals that a sizeable portion of China’s FX reserves are already euro-denominated.<\/p>\n

JPY<\/span><\/em><\/strong>
\nJapanese lawmakers and policy makers made plenty headlines during the Asia session. In response to USDJPY hitting a new 15-year low yesterday, Finance Minister Noda said this was due to a broad-based dollar decline and not just against the yen. He warned that he is still watching FX markets with great interest and will take decisive steps if needed to curb excessive FX moves. He added that he would like to discuss ways to maintain international currency order at the upcoming G20 meeting, due to be held on Oct. 22-23. However, he warned that he would decide whether or not to intervene “regardless of the G7 or G20”.<\/p>\n

Prime Minister Kan says he is concerned about the yen’s current strength. Economy Minister Kaeida added that the yen’s current rise is no good for the economy, and said he expects timely steps will be taken to counter the yen’s rise. The BoJ provided two speakers. Governor Shirakawa said that Japan’s return to sustainable growth may be delayed, and that the BoJ will take appropriate action. Deputy Governor Yamaguchi said further easing would be possible by extending the BoJ’s new asset purchase scheme, repeating remarks made earlier by Shirakawa.<\/p>\n

Industrial production growth moderated somewhat in August, but still managed to rise by +15.1% y\/y (prev. 15.4%).<\/p>\n


\nTECHNICAL OUTLOOK<\/span><\/strong>
\n
\n<\/span><\/strong>USDCHF support at 0.9225.<\/p>\n

EURUSD BULLISH Recovery through 1.4045 exposes 1.4194 and 1.4371 Fibonacci resistance. Support at 1.3908.<\/p>\n

USDJPY BEARISH The pair targets 79.75 with scope for 77.91 next. Resistance holds at 83.03 ahead of 83.99.<\/p>\n

GBPUSD BULLISH Rise through 1.6018 favors extension of the uptrend towards 1.6201 ahead of 1.6379. Support at 1.5888 ahead of 1.5670.<\/p>\n

USDCHF BEARISH Outlook is bearish; break below 0.9500 exposes 0.9225. Resistance at 0.9729 ahead of 0.9918 breakout low.<\/p>\n

AUDUSD BULLISH Momentum is positive; expect recovery towards 1.000 ahead of 1.0166. Support at 0.9834 ahead of 0.9709 reaction low.<\/p>\n

USDCAD BEARISH Targets 0.9931 with scope for 0.9820 next. Resistance at 1.0106.<\/p>\n

EURCHF BULLISH Upside potential held at 1.3494 ahead of 1.3665. Initial support lies at 1.3265 ahead of 1.3072.<\/p>\n

EURGBP BULLISH Currently holds resistance at 0.8840 ahead of 0.8894 and 0.9039. Support holds at 0.8689 ahead of 0.8563.
\nEURJPY BULLISH While support at 112.86 holds, expect recovery towards 115.68 ahead of 116.68 Fibonacci resistance.<\/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 steadied during the Asia session, having earlier clawed back some of the losses sustained after yesterday’s surprise tightening by the Monetary Authority of Singapore. EURUSD traded 1.4009-1.4088,<\/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-14081","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14081","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=14081"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14081\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}