{"id":17504,"date":"2011-01-04T08:20:04","date_gmt":"2011-01-04T13:20:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=17504"},"modified":"2011-01-04T08:20:04","modified_gmt":"2011-01-04T13:20:04","slug":"forex-daily-market-commentary-188","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/01\/04\/forex-daily-market-commentary-188\/","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 rallied throughout the Asia session, in the wake of \t\t\tyesterday’s solid ISM report. Gains were most pronounced against the \t\t\tAUD, NZD, JPY, and CHF. EURUSD traded 1.3329-1.3389, USDJPY \t\t\t80.93-82.18. Equities have had a good start to the new year – the \t\t\tS&P 500 finished up over 1%, and the Nikkei 225 is +1.6% higher at \t\t\tthe time of writing, while the US 10y yield is relatively unchanged \t\t\tat 3.37%. The manufacturing ISM index for December rose as expected \t\t\tto 57.0 and the new orders index, the most leading component, also \t\t\tadvanced. Details of the report showed a gain in the production \t\t\tcomponent and while the employment index slipped, the reading still \t\t\tindicates net headcount gains. Our team of analysts note that the \t\t\tincrease in the headline reading leaves the index at a very healthy \t\t\tlevel and suggests upward momentum at the end of Q4, which is \t\t\tconsistent with their forecast of real GDP growth picking up from a \t\t\t+2.6% pace in Q3 to +3.5% in Q4. Construction spending also rose for \t\t\tNovember, though less than October. Up next are the minutes from the \t\t\tDec. 14 FOMC meeting, which could shed more light into how officials \t\t\tview the effectiveness of QE2 in the context of the November \t\t\tpayrolls disappointment and higher Treasury yields.
\n EUR<\/span><\/em><\/strong><\/p>\n

In a piece in Spanish paper El Pais, China’s vice-Premier Li Keqian \t\t\tsaid China will continue to buy Spanish government debt in the \t\t\tfuture. The comments come ahead of his week-long visit to Spain, \t\t\tGermany and the UK, where the EU’s sovereign crisis and potential \t\t\tChinese help is expected to be high on the agenda.
\nGerman manufacturing PMI was softer than expected at 60.7, however \t\t\tthe factory jobs index came in at 57.1, the highest in the survey’s \t\t\t14-year history.
\nThe ECB announced it completed ?164mm of bond purchases under the \t\t\tSecurities Markets Program (SMP) in the week to December 31, \t\t\tcompared to ?1.121bn the week before. This brings the total \t\t\tpurchases under the SMP to ?73.5bn<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nUSDCAD 0.9889\/25 support zone.
\nEURUSD BULLISH Momentum is positive; break of 1.3425 would \t\t\texpose1.3499. Support at 1.3251.
\nUSDJPY BEARISH The outlook remains bearish; focus is on 80.93 ahead \t\t\tof 80.54. Resistance is at 84.51.
\nGBPUSD BEARISH Support zone 1.5297\/65 holds while initial resistance \t\t\tat 1.5665.
\nUSDCHF BEARISH Bearish outlook remains; focus is on 0.9301 ahead of \t\t\t0.9202; initial resistance is at 0.9734.
\nAUDUSD BULLISH Bull trend is intact; focus is on 1.0256 resistance \t\t\twhile support lies at 0.9951\/18.
\nUSDCAD BEARISH Bearish outlook; targets 0.9889\/25 support zone. \t\t\tInitial resistance is at 1.0008.
\nEURCHF BEARISH Outlook remains bearish; break of 1.2402 would expose \t\t\t1.2283; resistance at 1.2714.
\nEURGBP BULLISH Upside momentum with focus on 0.8692, a break here \t\t\texposes 0.8777. Support at 0.8503.
\nEURJPY BEARISH Support holds at 107.61, break here would expose \t\t\t105.80. Resistance at 110.82.<\/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":"

Equities have had a good start to the new year – the S&P 500 finished up over 1%, and the Nikkei 225 is +1.6% higher at the time of writing, while the US 10y yield is relatively unchanged at 3.37%. The manufacturing ISM index…<\/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-17504","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17504","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=17504"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17504\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=17504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=17504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=17504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}