{"id":15766,"date":"2010-11-23T08:41:19","date_gmt":"2010-11-23T13:41:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15766"},"modified":"2010-11-23T08:41:19","modified_gmt":"2010-11-23T13:41:19","slug":"forex-daily-market-commentary-160","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/23\/forex-daily-market-commentary-160\/","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

News of an exchange of fire on the Korean peninsula led to a sudden \t\t\tincrease in risk aversion towards the end of the Asia session. The \t\t\tdollar strengthened sharply, in particular against the yen given \t\t\tJapan’s geographical proximity. EURUSD traded 1.3542-1.3634, USDJPY \t\t\t83.23-83.74. We expect further dollar strength into year-end as \t\t\tdollar bears look to unwind positions. The US data calendar was \t\t\tquiet at the start of the holiday-shortened week, which only \t\t\theightened market participant scrutiny of Eurozone developments. \t\t\tMinnesota Fed President Kocherlakota, a 2011 FOMC voter, said that \t\t\the expected QE to have only a “modest” impact. But he nevertheless \t\t\tsupported it as growth is “alarmingly” slow and uncertainty in the \t\t\teconomy is too high. Upcoming releases include the second estimate \t\t\tof Q3 GDP and the latest FOMC minutes. The minutes will include \t\t\tupdated central tendency forecasts. We expect these will show a \t\t\tlower real GDP growth projection than the 3.5%-4.2% central tendency \t\t\treported at the June meeting.
\nEUR<\/span><\/em><\/strong><\/p>\n

Increased political uncertainty in Ireland, coupled with a ratings \t\t\tagency warning of a potential “multi-notch” downgrade continues to \t\t\tweigh on the euro. Irish Prime Minister Cowen said he would not \t\t\tdissolve parliament immediately or step down. But he said it is \t\t\timportant for the government to work on passing the budget and \t\t\tfinish aid talks. Cowen said should the budget pass on Dec 7, he \t\t\twould dissolve parliament and call for elections in early 2011.
\nECB Governing Council Member Liikanan said the euro will survive \t\t\tthis crisis and that it is ‘impossible’ for the Eurozone to split. \t\t\tECB President Trichet said the euro has delivered exactly what was \t\t\texpected and the euro was not at stake. He shares the view that a \t\t\tdollar that is credible among the major currencies of the advanced \t\t\teconomies is in the interests of the US. Trichet also said \t\t\tnon-standard ECB measures are temporary in nature and that Europe is \t\t\tin a better fiscal position than Japan or the US.
\nUK Chancellor Osborne reiterated the UK will not be part of a \t\t\tpermanent mechanism but would offer bilateral loans to Ireland.
\n
\nTECHNICAL OUTLOOK<\/span><\/strong>
\nEURUSD focus on 1.3363
\nEURUSD BEARISH Focus is on 1.3363; break through the level would \t\t\texpose 1.3265. Resistance at 1.3786 ahead of 1.4282.
\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 BEARISH The pair has support at 0.9652 ahead of 0.9542. \t\t\tResistance at 0.9954 ahead of 1.0183.
\nUSDCAD BULLISH Sustained break of 1.0380 required to confirm the \t\t\tbull trend. Initial support at 1.0070.
\nEURCHF NEUTRAL 1.3834 and 1.3229 mark the near term directional \t\t\ttriggers.
\nEURGBP BEARISH Sell-off from 0.8942 found support at 0.8449 ahead of \t\t\t0.8390. Initial 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":"

News of an exchange of fire on the Korean peninsula led to a sudden increase in risk aversion towards the end of the Asia session. The dollar strengthened sharply, in particular against the yen given Japan’s geographical proximity. EURUSD traded 1.3542-1.3634,<\/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-15766","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15766","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=15766"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15766\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}