{"id":18341,"date":"2011-01-20T08:15:52","date_gmt":"2011-01-20T13:15:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=18341"},"modified":"2011-01-20T08:15:52","modified_gmt":"2011-01-20T13:15:52","slug":"forex-daily-market-commentary-200","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/01\/20\/forex-daily-market-commentary-200\/","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

Dollar performance was mixed during the Asia session with gains made \t\t\tagainst the AUD and the NZD, while there was little net change \t\t\tagainst the euro. The impact of growth-friendly Chinese data was \t\t\tcurbed after its apparent leaking ahead of schedule yesterday. \t\t\tEURUSD traded 1.3427-1.34. USDJPY 81.84-82.30. Uninspiring US \t\t\tearnings data contributed to a 1% decline in the S&P 500, and Asian \t\t\tequities also sold off throughout the session. Inclement weather \t\t\tlikely caused the 4.3% m\/m decline in US housing starts in December. \t\t\tHowever, building permits, which are less sensitive to weather, \t\t\tjumped 16.7% m\/m. Initial jobless claims are due today along with \t\t\tthe Philly Fed index and existing home sales.
\n EUR<\/span><\/em><\/strong><\/p>\n

Various European officials spoke over the past 24 hours, but there \t\t\thas been no fresh news on a solution to the Eurozone’s sovereign \t\t\tdifficulties.
\nEFSF CEO Regling said there is no current need to expand the size of \t\t\tthe EFSF rescue fund, adding that Spain and Portugal are able to \t\t\tfinance themselves on the market. However, he implied that new \t\t\tmechanisms could be found to bridge the gap between the EFSF’s \t\t\teffective lending capacity, and the headline figure of \u20ac440 bn. By \t\t\tcontrast, EU Commissioner Rehn said that the it would be important \t\t\tto boost the EFSF so that markets would not doubt the ability of it \t\t\tto act if needed.
\nA story in German newspaper Die Zeit, suggested that the EFSF might \t\t\teventually be used to finance Greek debt buy-backs. However, the \t\t\tGerman Finance Ministry were quick to deny the story.
\nECB’s Stark said that Eurobonds were not compatible with the Euro \t\t\tTreaty and that they would be a subsidy for several countries.
\n GBP<\/span><\/em><\/strong><\/p>\n

MPC member Adam Posen maintained his dovish stance last night. He \t\t\tsaid that a central bank’s job is not to lower inflation but to \t\t\tprovide price stability and that low inflation was not the same as \t\t\tprice stability.
\nThe December jobless report showed a fall in jobless claims of \t\t\t4.10k, compared to consensus expectations of no change.
\n CAD<\/span><\/em><\/strong><\/p>\n

The BoC’s Monetary Policy Report update expanded on the forecast \t\t\tchanges it revealed in its policy announcement. The 2011 GDP growth \t\t\tupgrade is due to a stronger outlook for the US economy. However, \t\t\tthe upgrade for Canada’s growth outlook was slight for the year as \t\t\tthe BoC cites the strong CAD and sluggish productivity in Canada as \t\t\tconcerns.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nUSDCHF breaks 0.9542 support
\nEURUSD BULLISH Rise through 1.3500 puts 1.3575 in focus ahead of \t\t\t1.3741\/86. Near-term support lies at 1.3369
\nUSDJPY BEARISH Breach of 81.89 has exposed 81.61. Initial resistance \t\t\tis at 82.69.
\nGBPUSD BULLISH Recovery held below 1.6074\/94 resistance zone. \t\t\tInitial support defined at 1.5878
\nUSDCHF BEARISH Violation of 0.9542 support initiates negative tone \t\t\ttargeting 0.9469 next. Near term resistance is at 0.9687.
\nAUDUSD BEARISH While resistance holds at 1.0083, focus is on support \t\t\t0.9898\/56.
\nUSDCAD NEUTRAL Model has turned neutral; 1.0034 and 0.9838 mark the \t\t\tnear term directional triggers.
\nEURCHF BULLISH The pair targets 1.3038 ahead of 1.3122; initial \t\t\tsupport at 1.2770.
\nEURGBP NEUTRAL Pressure builds on initial resistance 0.8455 while \t\t\tsupport holds at 0.8377.
\nEURJPY BULLISH Rise through 111.16 would open up the way towards \t\t\t112.19. Support at 109.58.<\/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":"

Dollar performance was mixed during the Asia session with gains made against the AUD and the NZD, while there was little net change against the euro. The impact of growth-friendly Chinese data was curbed after its apparent leaking ahead of schedule yesterday. EURUSD traded 1.3427-1.34. USDJPY 81.84-82.30…<\/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-18341","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18341","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=18341"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18341\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=18341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=18341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=18341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}