{"id":17309,"date":"2010-12-27T08:15:04","date_gmt":"2010-12-27T13:15:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=17309"},"modified":"2010-12-27T08:15:04","modified_gmt":"2010-12-27T13:15:04","slug":"forex-daily-market-commentary-184","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/12\/27\/forex-daily-market-commentary-184\/","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

In a surprise move, China hiked benchmark interest rates by 25bp \t\t\tover the weekend, but the FX reaction during the Asia session \t\t\tovernight was relatively muted. EURUSD traded 1.3073-1.3146, USDJPY \t\t\t82.76-82.98, and AUDUSD 0.9988-1.0047. Although the US dollar \t\t\tinitially strengthened against its Australian counterpart, the gains \t\t\twere eventually surrendered. This does not suggest the AUD has \t\t\tsuddenly developed an immunity to policy tightening risks in China; \t\t\tthe absence of a stronger reaction probably has much more to do with \t\t\tthin year-end trading conditions. Today, the Dallas Fed’s \t\t\tmanufacturing activity index for December is due to kick off a quiet \t\t\tweek for US economic data. The consensus expects a very marginal \t\t\tincrease over the November print.
\n JPY<\/span><\/em><\/strong><\/p>\n

Senior Vice Finance Minister Igarashi said that Japan needs to be \t\t\tcautious about yen movements. These remarks are very much in tune \t\t\twith comments made by Finance Minister Noda on Friday when he said \t\t\tthat Japan will take decisive action on FX when needed.
\nThe minutes from BoJ meetings held on Oct 28, and Nov 4-5 showed \t\t\tthat “a few” members on the policy board noted that purchases \t\t\tconducted through the new asset purchase program could be \t\t\tfront-loaded, or the size of the program could be increased if \t\t\tnecessary. There was some obvious concern over the Fed’s decision to \t\t\tembark on another round of quantitative easing, and board members \t\t\tagreed it would be “necessary to pay attention to how this would \t\t\taffect financial and foreign exchange markets”.
\n“Many members” also felt that careful attention should continue to \t\t\tbe paid to the risks that yen appreciation might exert downward \t\t\tpressure on Japan’s economy “by negatively affecting business and \t\t\thousehold sentiment, in addition to depressing growth in exports and \t\t\tcorporate profits”.
\nJapan approved a record Y92.4 trn budget for the 2011-2012 fiscal \t\t\tyear. JGB issuance via regular auctions is also set to hit a record, \t\t\tof Y144.9 trn. Prime Minister Kan warned that fiscal restoration has \t\t\tnot gone far enough.
\n CHF<\/span><\/em><\/strong><\/p>\n

A Swiss Sunday newspaper reported that the Swiss government is \t\t\texploring ways to protect exports from the strong CHF. No sources \t\t\twere cited by the article.
\nIn its latest quarterly bulletin, the SNB warned that the worsening \t\t\tdebt concerns inside the Eurozone have led to a stronger franc, and \t\t\tthis would hurt economic growth in Switzerland. The bank also warned \t\t\tthat measures would be taken to counter deflation threats if needed, \t\t\timplying a readiness to intervene.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nUSDJPY 82.34\/00 support zone
\nEURUSD BEARISH Move below 1.3055\/48 support zone would expose \t\t\t1.2969. Resistance at 1.3360
\nUSDJPY BEARISH Break of 82.84 has exposed 82.34\/00, resistance is at \t\t\t84.51
\nGBPUSD BEARISH Support zone 1.5297\/65 holds while initial resistance \t\t\tat 1.5568
\nUSDCHF BEARISH Support is at 0.9463 key low, a break here would \t\t\tleave little support till 0.9202; initial resistance is at 0.9734
\nAUDUSD BULLISH Upside potential, break of 1.0091 would expose \t\t\t1.0183; support lies at 0.9951\/18
\nUSDCAD BEARISH Support zone holds at 1.0050\/33; initial resistance \t\t\tat 1.0209
\nEURCHF BEARISH Break of 1.2533\/00 support zone exposed 1.2439 ahead \t\t\tof 1.2283; resistance at 1.2714
\nEURGBP BULLISH Resistance at 0.8553, support at 0.8426
\nEURJPY BEARISH Pressure on 108.35, a break here exposes 107.86 \t\t\tFibonacci support. Resistance at 110.82.<\/p>\n

Forex Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI Financial Ltd<\/strong><\/a>.<\/strong><\/span><\/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":"

In a surprise move, China hiked benchmark interest rates by 25bp over the weekend, but the FX reaction during the Asia session overnight was relatively muted. EURUSD traded 1.3073-1.3146, USDJPY 82.76-82.98, and AUDUSD 0.9988-1.0047. <\/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-17309","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17309","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=17309"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17309\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=17309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=17309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=17309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}