{"id":16578,"date":"2010-12-10T08:01:33","date_gmt":"2010-12-10T13:01:33","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=16578"},"modified":"2010-12-10T08:01:33","modified_gmt":"2010-12-10T13:01:33","slug":"forex-daily-market-commentary-173","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/12\/10\/forex-daily-market-commentary-173\/","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 was largely unchanged for most of the Asia session given \t\t\tthe relative absence of news. EURUSD traded 1.3217-1.3271, USDJPY \t\t\t83.52-83.87. Trade data out of China was extremely strong however. \t\t\tOrdinarily this would have boosted global risk appetite, but market \t\t\tattention focused instead on the policy tightening measures that \t\t\tmight soon be deployed to promote sustainable economic growth. As a \t\t\tresult, the AUD and the EUR failed to stage much of a rally on the \t\t\tnumbers. Treasury yields were slightly lower following a better than \t\t\tanticipated auction of $13bn of 30y Treasurys. Initial jobless \t\t\tclaims declined by more than expected and wholesale inventories were \t\t\tslightly higher in October, with an upward revision to the September \t\t\treading. Upcoming US data releases include the trade balance, the \t\t\tmonthly budget statement and the University of Michigan Consumer \t\t\tConfidence index. Ongoing uncertainty in the Eurozone should keep \t\t\tthe dollar supported.
\n EUR<\/span><\/em><\/strong><\/p>\n

ECB Governing Council member Draghi said that the euro “is not in \t\t\tquestion” due to the sovereign debt crisis, adding that it is “one \t\t\tof the pillars of European economic integration”. He said that \t\t\t“sooner or later” the ECB is likely to return to the pre-crisis \t\t\tsystem of auctioning liquidity and that the ECB is discussing \t\t\t“concrete proposals” over how to handle banks that are currently \t\t\tdependent on ECB cash.
\nThe Irish government announced it will put the EU\/IMF aid package to \t\t\ta parliamentary vote on December 15. Shortly afterwards, the \t\t\topposition Labour party said it would vote against the deal while an \t\t\tindependent member of parliament (MP) said that he and a fellow \t\t\tindependent MP would vote in favour.
\nFitch downgraded Ireland by 3 notches to BBB+ in light of the \t\t\tadditional fiscal costs of bank restructuring. This was largely in \t\t\tline with expectations, and the market was somewhat consoled by the \t\t\tstable outlook assigned. Moody’s is currently conducting a ratings \t\t\treview, and is expected to announce its decision over the coming \t\t\tweeks.
\nFitch also said that Eurozone credit fundamentals are better than \t\t\tmarkets show, and said it does not envisage a Eurozone break-up.
\n GBP<\/span><\/em><\/strong><\/p>\n

As expected, the BOE left their benchmark rate unchanged at 0.5%, \t\t\tand as a consequence offered no statement. Our UK economist expects \t\t\trate hikes in Q3 of next year.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nUSDJPY stalled at 84.41
\nEURUSD BEARISH Break of 1.3180 exposes 1.3149 ahead of 1.2969. \t\t\tResistance at 1.3442
\nUSDJPY BULLISH Outlook is positive; recovery stalled below 84.41. \t\t\tSupport at 83.46
\nGBPUSD NEUTRAL Initial resistance at 1.5841 with support at \t\t\t1.5669\/56.
\nUSDCHF BEARISH Move below 0.9726 would expose 0.9670. Only a break \t\t\tthrough 0.9463 would confirm the bear trend. Resistance at 0.9916
\nAUDUSD NEUTRAL Model is neutral; initial resistance at 0.9965, \t\t\tsupport at 0.9739\/00.
\nUSDCAD BEARISH Sustained break through 0.9978\/31 support zone \t\t\trequired for extension of the bear trend towards 0.9820. Resistance \t\t\tat 1.0141
\nEURCHF BEARISH Focus is on 1.2933; breach of the level would \t\t\texpose1.2766. Resistance at 1.3229
\nEURGBP BEARISH Move below 0.8390 has exposed next support lying at \t\t\t0.8335. Initial resistance defined at 0.8429
\nEURJPY BEARISH Remains heavy below 111.98; initial support defined \t\t\tat 109.57 ahead of 108.35.<\/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 was largely unchanged for most of the Asia session given the relative absence of news. EURUSD traded 1.3217-1.3271, USDJPY 83.52-83.87. Trade data out of China was extremely strong however. Ordinarily this would have boosted global risk appetite, but market attention focused instead<\/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-16578","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/16578","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=16578"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/16578\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=16578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=16578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=16578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}