{"id":15286,"date":"2010-11-12T08:15:02","date_gmt":"2010-11-12T13:15:02","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15286"},"modified":"2010-11-12T08:15:02","modified_gmt":"2010-11-12T13:15:02","slug":"forex-daily-market-commentary-153","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/12\/forex-daily-market-commentary-153\/","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 made broad substantial gains during the Asia session on \t\t\tsigns that lawmakers and policymakers are becoming increasingly \t\t\tconcerned about the intensifying Eurozone debt crisis. EURUSD traded \t\t\t1.3592-1.3670, and USDJPY 82.24-82.61. The S&P 500 finished down \t\t\t-0.42%, but Asian equities are even deeper in the red at the time of \t\t\twriting. No official communiqu\u00e9 from the G20 Summit has yet been \t\t\treleased, but comments already on the newswires suggest that the \t\t\tchance of a substantive agreement on imbalances is remote. \t\t\tNaturally, bilateral meetings held on the fringes of the summit were \t\t\talso in focus. Reports suggested that the key meeting between US \t\t\tPresident Obama and China President Hu focused on exchange rate \t\t\tpolicy. Newswires also reported that, during another bilateral \t\t\tmeeting, German Chancellor Merkel expressed concern to Obama about \t\t\tUS monetary policy. Today, the University of Michigan confidence \t\t\tsurvey is due, and our US economists and the consensus expect a \t\t\tmodest increase in the headline index to 69.0 from 67.7 previously. \t\t\tThe New York Fed is also due to begin Treasury purchases under the \t\t\tFed’s latest round of quantitative easing, concentrating on the 4-6 \t\t\tyear segment of the curve.
\nEUR<\/span><\/em><\/strong><\/p>\n

Sovereign bond yields of peripheral Eurozone nations continued to \t\t\tblow out yesterday. Ireland’s Prime Minister Cowen said that the \t\t\tlatest widening of Irish yields was caused by uncertainty over \t\t\tGerman proposals to create a permanent sovereign rescue mechanism. \t\t\tThe proposals include the suggestion that bondholders could be \t\t\tforced to take haircuts, and Cowen said the Irish government is \t\t\tmaking diplomatic efforts to clarify the details of the plan.
\nGerman Chancellor Merkel said that the EU is prepared to deal with \t\t\tall possible scenarios concerning Ireland, but that it is up to \t\t\tindividual countries to ask for help if it is needed. Merkel said \t\t\tthat markets have misunderstood discussions surrounding the future \t\t\tof Eurozone bailouts. Finance Minister Schaeuble agreed, saying the \t\t\tsituation is “a total misunderstanding”. Moody’s said it will \t\t\tconclude its review of Ireland’s credit rating in December, adding \t\t\tthat the four-year fiscal consolidation plan, which is due to be \t\t\tpublished in November, will be key to the ratings decision.
\nEuropean Commission President Barroso said the EU would be ready to \t\t\tcome to Ireland’s aid if needed. Ireland’s Finance Minister Lenihan \t\t\tsaid Barroso’s comments were helpful and demonstrate the solidarity \t\t\tthat exists within the Eurozone. ECB Executive Board Member Stark \t\t\tsaid the ECB is in the process of withdrawing unconventional \t\t\tmeasures, but that these will be kept in place as long as necessary. \t\t\tHe added that the ECB’s current interest rate settings are \t\t\tappropriate. Stark said it would be an illusion to think that the \t\t\tcrisis is over, and insisted that ECB activity in Eurozone bond \t\t\tmarkets is motivated by monetary policy, and not politics.
\nOn Greece, Stark said that consolidation efforts are on track, and \t\t\tthat “it is possible” for Greece to overcome its economic \t\t\tdifficulties.
\n CHF<\/span><\/em><\/strong><\/p>\n

The SNB reported a loss on of CHF 8.5bn for the first three quarters \t\t\tof this year, and said that loss was mainly attributable to exchange \t\t\trate losses on foreign currency positions.
\n
\nTECHNICAL OUTLOOK<\/span><\/strong>
\nEURUSD 1.3235 support.
\nEURUSD BEARISH Violation of 1.3635 triggers the negative tone. Next \t\t\tsupport at 1.3235.
\nUSDJPY BULLISH Recovery through 81.99 exposes 83.99. Initial support \t\t\tdefined at 81.55 ahead of 79.75 key support.
\nGBPUSD BULLISH Focus is on 1.6379 ahead of 1.6458. Support holds at \t\t\t1.5651.
\nUSDCHF NEUTRAL Trading within 0.9972 and 0.9463 which mark the key \t\t\tdirectional triggers.
\nAUDUSD NEUTRAL Pullback from 1.0183 has support at 0.9652 ahead of \t\t\t0.9542 reaction low.
\nUSDCAD BEARISH Push through 0.9981 has exposed 0.9820 with scope for \t\t\t0.9712 next. Resistance at 1.0156.
\nEURCHF BEARISH Violation of 1.3265 exposes 1.3072. Sustained break \t\t\tof 1.3834 required for resumption of bull trend.
\nEURGBP BEARISH Momentum is negative; move below 0.8390 would expose \t\t\t0.8311. Resistance at 0.8552 yesterday’s high.
\nEURJPY BEARISH Remains heavy below 115.68; initial support at 111.53 \t\t\tahead 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 made broad substantial gains during the Asia session on signs that lawmakers and policymakers are becoming increasingly concerned about the intensifying Eurozone debt crisis. EURUSD traded 1.3592-1.3670, and USDJPY 82.24-82.61. <\/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-15286","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15286","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=15286"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15286\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}