{"id":16709,"date":"2010-12-13T08:38:33","date_gmt":"2010-12-13T13:38:33","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=16709"},"modified":"2010-12-13T08:38:33","modified_gmt":"2010-12-13T13:38:33","slug":"forex-daily-market-commentary-174","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/12\/13\/forex-daily-market-commentary-174\/","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 People’s Bank of China today interrupted a previously quiet \t\t\tEuropean session with another increase in required reserve ratios, \t\t\tthe sixth such move this year. Risk appetite has so far held up \t\t\tthough, as markets took the announcement as less severe than a hike \t\t\tin China’s benchmark interest rates, which some had anticipated. In \t\t\tfact, the Australian and New Zealand dollars strengthend, with AUDSD \t\t\tand NZDUSD trading ranges of 0.9812-.9897 and 0.7462-.7529, \t\t\trespectively. US releases today include the trade balance, \t\t\tUniversity of Michigan confidence and monthly budget statement.
\nThe PBoC announcement came after strong trade data – both imports \t\t\tand exports expanded much more than expectations – and significant \t\t\tloan growth data, which points towards a high CPI print tomorrow. As \t\t\tprice pressures continue to rise, the RRR hikes do seem like a case \t\t\tof postponing the inevitable, and a more orthodox rate hike is still \t\t\tlikely before year-end.
\nOngoing uncertainty in the Eurozone should keep the dollar supported \t\t\tand ECB policymakers, including Trichet himself, will be on the \t\t\twires. EURUSD traded 1.3217-1.3283, USDJPY 83.52-83.87.
\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 yesterday that it will put the EU\/IMF \t\t\taid package to a parliamentary vote on December 15. Shortly \t\t\tafterwards, the opposition Labour party said it would vote against \t\t\tthe deal while an independent member of parliament (MP) said that he \t\t\tand a fellow independent MP would vote in favour. We retain our \t\t\tbearish euro view.
\n GBP<\/span><\/em><\/strong><\/p>\n

UK producer price inflation rose by 0.3% m\/m and 3.9% y\/y against \t\t\tmarket expectations of 0.4% and 4.1%.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\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 1.5892 and 1.5669 mark the near-term directional \t\t\ttriggers.
\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 Look for a break below 0.9978\/31 support zone for \t\t\tconfirmation of bear trend. Resistance at 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 People’s Bank of China today interrupted a previously quiet European session with another increase in required reserve ratios, the sixth such move this year. Risk appetite has so far held up though, as markets took the announcement as less severe than a hike in China’s benchmark interest rates<\/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-16709","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/16709","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=16709"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/16709\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=16709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=16709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=16709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}