{"id":15088,"date":"2010-11-08T08:42:59","date_gmt":"2010-11-08T13:42:59","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15088"},"modified":"2010-11-08T08:42:59","modified_gmt":"2010-11-08T13:42:59","slug":"forex-daily-market-commentary-149","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/08\/forex-daily-market-commentary-149\/","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

A better than expected US payrolls report along with renewed \t\t\tconcerns about Ireland weighed on the euro and kept the greenback \t\t\tsupported in Asia. EURUSD traded 1.3919-1.4085 and USDJPY traded \t\t\t81.14-81.44. Friday’s headline October payrolls reading rose by \t\t\t+151k (cons. +60k), and private payrolls expanded by +159k (cons. \t\t\t+80k). The average work-week lengthened to 34.3 hours, and average \t\t\thourly earnings rose by +0.2% m\/m. The unemployment rate was steady \t\t\tat 9.6%. In a rare reference to the dollar, Bernanke said that \t\t\t“we’re certainly aware that the dollar does play a special role in \t\t\tthe global economy”, and that “the best fundamentals for the dollar” \t\t\twill occur when the US economy is growing strongly. Treasury \t\t\tSecretary Geithner reaffirmed that a strong dollar is in the \t\t\tinterests of the US, and that the US will never use its currency to \t\t\tgain competitive advantage. He said the flow of capital into \t\t\temerging markets is fundamentally positive as it shows confidence in \t\t\ttheir growth prospects.
\nEUR<\/span><\/em><\/strong><\/p>\n

Initial official estimates showed Greek Prime Minister Papandreou’s \t\t\truling party ahead in local elections. As such Papandreou ruled out \t\t\ta snap early election, which he had threatened to call should the \t\t\tmajority of the population not stand behind his party. After the \t\t\tmajority seems confirmed Papandreou said that “making changes is not \t\t\teasy. Greek people brought us to power a year ago and today \t\t\tconfirmed that they want this change. We will continue with our task \t\t\ttomorrow”.
\nRising credit spreads on Irish debt have started to weigh on the \t\t\teuro. EU commissioner Rehn arrives in Ireland today to evaluate the \t\t\tcountry’s budget plan. The Irish government presented a plan which \t\t\tintends to introduce austerity measures totaling EUR6 bn.
\nGerman industrial production for September is the only notable \t\t\trelease due today. EU Commissioner Rehn will hold a press conference \t\t\ttogether with Irish Finance Minister Lenihan.
\n GBP<\/span><\/em><\/strong><\/p>\n

On Friday, Producer price inflation in the UK for October was higher \t\t\tthan anticipated as input prices rose by +2.1% m\/m and +8% y\/y \t\t\tcompared to expectations of +0.8% and +7.2%. This provides further \t\t\tevidence that there are underlying price pressures in the UK \t\t\teconomy, although for the moment it appears that they are being \t\t\tinternalized by firms as relatively weak demand means price hikes \t\t\tare not yet being passed on to consumers.
\n JPY<\/span><\/em><\/strong><\/p>\n

BoJ Deputy Governor Yamaguchi said the central bank will start \t\t\tbuying government bonds under its outlined asset purchase scheme \t\t\ttoday. He added that downside risks to the economy need to be \t\t\twatched carefully and that the central bank is ready to act flexibly \t\t\tshould the economy weaken further.
\nPrime Minister Kan invoked the recent G20 statement to justify \t\t\tJapan’s Sept 15 intervention. He said the G20 agreed that rapid \t\t\tcurrency moves are not desirable and “that is why we intervened in \t\t\tthe market once”. He added that “if we face a rapid surge in the yen \t\t\tagain, such a step may become necessary”.
\n AUD<\/span><\/em><\/strong><\/p>\n

Prime Minister Gillard said that the strong AUD would reduce \t\t\tgovernment revenue in general, and that it would especially affect \t\t\trevenue anticipated to flow from the proposed mining tax. Our \t\t\tAustralia economics team still expects another 50bp of RBA \t\t\ttightening in H1 2011.
\n
\nTECHNICAL OUTLOOK<\/span><\/strong>
\nEURJPY pressure on 115.68
\nEURUSD BULLISH Next resistance above 1.4373 lies at 1.4579. Support \t\t\tis at 1.3992.
\nUSDJPY BEARISH Little support below 79.75 till 77.91. Resistance at \t\t\t81.99
\nGBPUSD BULLISH Upside potential targets 1.6379 with scope for 1.6458 \t\t\tnext. Support comes in at 1.6080.
\nUSDCHF BEARISH Break below 0.9463 would open up the way towards \t\t\t0.9225. Upside capped at 0.9972
\nAUDUSD BULLISH There is little resistance above 1.0222 till 1.1084. \t\t\tSupport at 0.9891 ahead of 0.9542 reaction low.
\nUSDCAD BEARISH Outlook is bearish; the pair eyes 0.9981 ahead of \t\t\t0.9820. Resistance at 1.0156.
\nEURCHF BULLISH Resistance is at 1.3834 and support is at 1.3435
\nEURGBP NEUTRAL 0.8942 and 0.8652 mark the near-term directional \t\t\ttriggers.
\nEURJPY BULLISH Upside pressure on 115.68; scope for 116.68 and \t\t\t119.33 next. Support comes in at 112.83.<\/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":"

A better than expected US payrolls report along with renewed concerns about Ireland weighed on the euro and kept the greenback supported in Asia. EURUSD traded 1.3919-1.4085 and USDJPY traded 81.14-81.44. Friday’s headline October payrolls reading rose by +151k (cons. +60k), and private payrolls expanded<\/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-15088","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15088","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=15088"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15088\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}