{"id":17981,"date":"2011-01-12T08:25:00","date_gmt":"2011-01-12T13:25:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=17981"},"modified":"2011-01-12T08:25:00","modified_gmt":"2011-01-12T13:25:00","slug":"forex-daily-market-commentary-194","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/01\/12\/forex-daily-market-commentary-194\/","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 dearth of major economic data releases over the past 24 hours \t\t\thas contributed to choppy price action. During the Asia session the \t\t\tdollar weakened against the euro, yen, and sterling, while concern \t\t\tover the economic impact of flooding in Australia kept AUDUSD under \t\t\tpressure. EURUSD traded 1.2944-1.3017, USDJPY 83.08-83.41.
\nPhiladelphia Fed President Plosser remains sceptical of the efficacy \t\t\tof QE2, saying he sees a moderate economic recovery though he did \t\t\tnot credit QE2 for recent improvement. Plosser said unemployment \t\t\twill be volatile as the labour market needs time to make difficult \t\t\tadjustments and he subdued inflation in the near term, with a low \t\t\tchance of deflation. Minneapolis Fed President Kocherlakota said he \t\t\tdoes not see a rapid improvement in US employment growth in 2011, \t\t\tadding that now is not the time to start tightening policy. \t\t\tKocherlakota did say, though, that if the Fed does not consider \t\t\ttightening policy by the end of the year, it may need to start \t\t\tconsidering that option in 2012. Eurozone peripheral auctions remain \t\t\tin focus with Portugal set to issue \u20ac1 bn.
\n EUR<\/span><\/em><\/strong><\/p>\n

In an article in today’s Financial Times EU Commissioner Rehn called \t\t\tfor the effective lending capacity of the EFSF to be increased and \t\t\tfor its scope to be widened, although he did not elaborate.
\nThe euro strengthened ahead of Portugal’s debt auction due today. \t\t\tPortuguese Finance Minister dos Santos said demand for debt has been \t\t\tmore than enough recently and that Portugal is still paying \t\t\trelatively low average rates. Elsewhere, Prime Minister Socrates \t\t\tsaid Portugal will not ask for a bailout and that such speculation \t\t\tis not helpful to the country. The Bank of Portugal, though, did say \t\t\tbanks’ reliance on ECB funds will stay significant in 2011-2012, \t\t\tgiven difficulties accessing the interbank markets.
\nThe King of Belgium rejected the Jan. 6 resignation of Belgium’s \t\t\troyal mediator, who was tasked with forming a new government. While \t\t\tthis is marginally positive for Belgium, the resignation underscores \t\t\tthe difficult task at hand, which is contributing to nervousness on \t\t\tthe euro.
\nWith debt issuance activity rising considerably in the coming weeks \t\t\twe expect investor uncertainty on the Eurozone periphery to remain \t\t\thigh and hence sentiment muted. Under such conditions we do not \t\t\texpect any change in the euro’s downtrend.
\n AUD<\/span><\/em><\/strong><\/p>\n

RBA Board Member McKibbin said that flooding in Australia could \t\t\tknock up to 1 percentage point off GDP growth.
\nHome loan lending increased by +2.5% in December (cons. -1.0%, prev. \t\t\t+2.2%). Our Australian economists retain their view that the next \t\t\t+25bp RBA hike will likely come in July.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nUSDCHF breaks 0.9727\/74.
\nEURUSD BEARISH Bearish pressure holds above 1.2830\/1.2796 support \t\t\tarea. Resistance is at 1.3021.
\nUSDJPY NEUTRAL Model is neutral; 83.67 and 82.63 mark the near-term \t\t\tdirectional triggers.
\nGBPUSD NEUTRAL Move above 1.5665 would put odds in favor of bull \t\t\ttrend; support at 1.5513.
\nUSDCHF BULLISH Recovery through 0.9727\/74 area has exposed 0.9852 \t\t\tnext. Support is at 0.9605.
\nAUDUSD BEARISH Bearish outlook, break of 0.9812 favours extension of \t\t\tbear trend towards 0.9753. Resistance at 0.9956.
\nUSDCAD BEARISH Lower boundary of 0.9889\/25 support area holds; a \t\t\tbreak here would expose 0.9820.Resistance is at 0.9951.
\nEURCHF NEUTRAL Initial resistance at 1.2726; support at 1.2402.
\nEURGBP BEARISH Violation of 0.8285 would expose 0.8252; resistance \t\t\tat 0.8339.
\nEURJPY BEARISH Next big support lies at 105.97 key low, resistance \t\t\tat 108.55.<\/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 dearth of major economic data releases over the past 24 hours has contributed to choppy price action. During the Asia session the dollar weakened against the euro, yen, and sterling, while concern over the economic impact of flooding in Australia kept AUDUSD under pressure. <\/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-17981","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17981","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=17981"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17981\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=17981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=17981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=17981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}