{"id":18800,"date":"2011-01-28T08:20:43","date_gmt":"2011-01-28T13:20:43","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=18800"},"modified":"2011-01-28T08:20:43","modified_gmt":"2011-01-28T13:20:43","slug":"forex-daily-market-commentary-205","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/01\/28\/forex-daily-market-commentary-205\/","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

Activity in FX markets was fairly subdued given the lack of news \t\t\tflow. The yen used the opportunity to claw back some of yesterday’s \t\t\tdowngrade-driven losses against the dollar. EURUSD traded \t\t\t1.3696-1.3744, USDJPY 82.58-82.98. The Nikkei 225 is -1.1% lower at \t\t\tthe time of writing. Earlier the S&P 500 breached the 1300 level for \t\t\tthe first time since Sept. 2008, but closed just below. Headline \t\t\tdurable goods unexpectedly dropped but the ex-transportation figure \t\t\tincreased, albeit by less than anticipated. Jobless claims jumped \t\t\tdue to inclement weather and the Martin Luther King Day holiday, \t\t\twhich indicates the jump does not reflect a material weakening in \t\t\tthe labor market. Q4 GDP and the University of Michigan confidence \t\t\tindex are due. Treasury Secretary Geithner speaks on the economy at \t\t\tDavos.
\n EUR<\/span><\/em><\/strong><\/p>\n

The euro benefited from hawkish remarks by ECB Executive Board \t\t\tmember Bini-Smaghi. He highlighted his concerns over the effects of \t\t\timported inflation in the Eurozone, noting that second-round effects \t\t\tcan only be avoided if domestic inflation is “significantly lower \t\t\tthan 2%”.
\nGreek Prime Minister Papandreou said Greece would not need to \t\t\trestructure its debt, but acknowledged that extending the maturity \t\t\tof EU\/IMF loans would be beneficial and would help to calm financial \t\t\tmarkets. ECB President Trichet said a strong economic union is \t\t\tneeded to strengthen EU ties and to keep those nations that exceed \t\t\tdeficit and debt limits accountable.
\nWe maintain our EURUSD forecasts as our team does not envisage an \t\t\tECB rate hike until Q4. We also believe that over-optimism on a \t\t\tsolution to Eurozone sovereign worries could ultimately lead to \t\t\tdisappointment when any changes to the EFSF are finally announced.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nEURGBP targets 0.8672\/91.
\nEURUSD BULLISH Targets the upper boundary of the 1.3741\/86 \t\t\tresistance zone; break through this would expose 1.3825. Support at \t\t\t1.3637.
\nUSDJPY BEARISH Rise through 82.67 and 83.13 has exposed 83.68. Near \t\t\tterm support is at 81.85.
\nGBPUSD BULLISH The pair eyes initial resistance 1.6017 ahead of \t\t\t1.6059. Support comes in at 1.5843.
\nUSDCHF BEARISH Focus is on 0.9390 ahead of 0.9301 key low. Initial \t\t\tresistance is at 0.9523.
\nAUDUSD BEARISH Momentum has shifted downside towards 0.9833\/0.9804 \t\t\tsupport zone. Near-term resistance is at 1.0022.
\nUSDCAD NEUTRAL 1.0004 and 0.9889 mark the near term directional \t\t\ttriggers.
\nEURCHF BULLISH Break of 1.3069 would expose 1.3118. Near term \t\t\tsupport is defined at 1.2827.
\nEURGBP BULLISH Remains bullish targeting 0.8672\/91 resistance zone. \t\t\tInitial support lies at 0.8582.
\nEURJPY BULLISH Positive momentum; initial resistance is at 114.94, \t\t\tbreach of this would expose 115.68 next. Initial support lies at \t\t\t112.45.<\/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":"

Activity in FX markets was fairly subdued given the lack of news flow. The yen used the opportunity to claw back some of yesterday’s downgrade-driven losses against the dollar. EURUSD traded 1.3696-1.3744, USDJPY 82.58-82.98…<\/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-18800","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18800","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=18800"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18800\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=18800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=18800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=18800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}