{"id":15725,"date":"2010-11-22T08:25:04","date_gmt":"2010-11-22T13:25:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15725"},"modified":"2010-11-22T08:25:04","modified_gmt":"2010-11-22T13:25:04","slug":"forex-daily-market-commentary-159","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/22\/forex-daily-market-commentary-159\/","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

Irish Prime Minister Cowen announced on Sunday that Ireland has \t\t\tformally requested financial assistance from the EU\/IMF. The euro \t\t\tclearly benefited from the news during the Asia session, and the \t\t\tdollar in particular weakened steadily against both the euro and the \t\t\tAUD. EURUSD traded 1.3695-1.3768 and USDJPY 83.14-83.65. On Friday, \t\t\tthe S&P 500 finished +0.7% higher, despite another 50bp hike to \t\t\tChina’s reserve requirement ratio. ECB President Trichet said that a \t\t\tstrong dollar relative to the other floating currencies is very \t\t\timportant. New York Fed Executive Vice President Checki said that \t\t\trecent dollar weakness is a side-effect, rather than a goal of the \t\t\tFed’s policy. He forecast that as US growth strengthens, the dollar \t\t\tshould strengthen accordingly. US Treasury Secretary Geithner \t\t\timplied he would not support any attempt to change the Fed’s dual \t\t\tmandate so that it focuses exclusively on inflation. He said the \t\t\texisting dual mandate has “served the country well over time”. \t\t\tMinneapolis Fed President Kocherlakota, who is due to become an FOMC \t\t\tvoter in January, is scheduled to speak later today. Last week, for \t\t\tthe first time, Kocherlakota publicly expressed his support for the \t\t\tFed’s latest round of quantitative easing.
\nEUR<\/span><\/em><\/strong><\/p>\n

The euro was boosted by Irish Prime Minister Cowen’s decision to \t\t\tformally request financial assistance from the EU\/IMF. Cowen expects \t\t\tnegotiations on the terms of the rescue to be concluded over the \t\t\tcoming weeks. Finance Minister Lenihan said the whole package would \t\t\tbe worth less than EUR100 bn. In a statement, Eurozone finance \t\t\tministers welcomed the decision, adding that both the UK and Sweden \t\t\twould also consider participating by means of bilateral loans.
\nGerman Finance Minister Schaeuble said that he could not give a \t\t\tconcrete figure for the cost of a possible Ireland rescue. He \t\t\tsounded optimistic that there would be no contagion from Ireland, \t\t\tbut said that a better solution to debt crises must be set up from \t\t\t2013.
\n CAD<\/span><\/em><\/strong><\/p>\n

BoC Governor Carney said the BoC would be prepared to “adjust \t\t\tpolicy” if the level of the CAD was such that it threatened the \t\t\tbank’s ability to achieve its inflation target. He said the bank has \t\t\tthe tools to intervene in the FX market, but would use these only in \t\t\textreme circumstances.
\n
\nTECHNICAL OUTLOOK<\/span><\/strong>
\nAUDUSD support at 0.9652
\nEURUSD BEARISH Pullback from 1.4282 holds above 1.3363; a break here \t\t\twould expose 1.3265. Initial resistance at 1.3777.
\nUSDJPY BULLISH Push through 83.99 would expose 85.93. Initial \t\t\tsupport at 82.40 ahead of 81.66 reaction low.
\nGBPUSD NEUTRAL Model is neutral; 1.6379 and 1.5840 mark the key \t\t\tnear-term directional triggers.
\nUSDCHF BULLISH Following the break of 0.9977, the pair has room for \t\t\ta run towards 1.0183. Near-term support at 0.9829.
\nAUDUSD NEUTRAL While support at 0.9652 holds, break of 1.0183 would \t\t\tleave little resistance till 1.1083.
\nUSDCAD BULLISH Sustained break of 1.0380 required to confirm the \t\t\tbull trend. Initial support at 1.0070.
\nEURCHF BULLISH Recovery through 1.3834 would expose 1.3924 and \t\t\t1.4041 next. Near-term support comes in at 1.3411 ahead of 1.3229.
\nEURGBP BEARISH Bearish pressure held at 0.8449 ahead of 0.8390. \t\t\tInitial resistance at 0.8638.
\nEURJPY BULLISH While support at 111.05 holds, require a break \t\t\tthrough 115.68 to confirm a bull trend.<\/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":"

BoC Governor Carney said the BoC would be prepared to “adjust policy” if the level of the CAD was such that it threatened the bank’s ability to achieve its inflation target. He said the bank has the tools to intervene in the FX market, but would use these only in extreme circumstances.<\/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-15725","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15725","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=15725"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15725\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}