{"id":19197,"date":"2011-02-08T08:32:59","date_gmt":"2011-02-08T13:32:59","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=19197"},"modified":"2011-02-08T08:32:59","modified_gmt":"2011-02-08T13:32:59","slug":"forex-daily-market-commentary-211","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/02\/08\/forex-daily-market-commentary-211\/","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 weakened during the Asia session, clocking up losses \t\t\tagainst the euro, the AUD, and the NZD. USDJPY remained tightly \t\t\trange-bound all night and traded 82.21-82.45. EURUSD traded \t\t\t1.3544-1.3636. The S&P 500 continued its advance and finished 0.6% \t\t\thigher, despite thin news flow. The attention now shifts to Federal \t\t\tReserve speakers, with Regional Fed Presidents Lacker (Richmond), \t\t\tLockhart (Atlanta) and Fisher (Dallas) scheduled to speak. Fisher \t\t\tand Lacker are more hawkish and Lockhart and Lacker are non-voters \t\t\tthis year, but their interpretation of the latest Bureau of Labor \t\t\tStatistics data could be an important near-term driver of the \t\t\tdollar. Non-voting members still participate in FOMC discussions and \t\t\tLacker and Lockhart will rotate into voting positions in 2012. \t\t\tFisher has already said he would be unlikely to support more easing \t\t\tbeyond QE2 and given the current biases of these three, we could see \t\t\tthe greatest USD reaction, if any, from Lockhart should he move away \t\t\tfrom his more neutral, cautious stance. Our economists believe \t\t\tpayrolls should bounce back to their firm underlying trend, with \t\t\tsome additional “payback” potentially ahead.
\n EUR<\/span><\/em><\/strong><\/p>\n

ECB Governing Council member Mersch said inflationary pressures have \t\t\tundoubtedly risen and the ECB would have to intervene if there were \t\t\tsecondary effects from higher commodity prices. Mersch also said the \t\t\tECB could hike interest rates without first exiting liquidity \t\t\tsupport measures. Mersch added that the EFSF should be able to buy \t\t\tbonds directly.
\nIrish Finance Minister Lenihan said he is negotiating with his \t\t\tEuropean counterparts on the question of whether haircuts can be \t\t\timposed on Irish senior bank debt which is not government \t\t\tguaranteed. He said the “debate is underway”.
\n GBP<\/span><\/em><\/strong><\/p>\n

Sterling received a brief boost on the news that the RICS house \t\t\tprice balance strengthened to -31% in January from -39% in December. \t\t\tIt remains in negative territory however, indicating that UK house \t\t\tprices are still tending to fall.
\n AUD<\/span><\/em><\/strong><\/p>\n

Business conditions in January showed a steep drop across employment \t\t\tintentions, forward orders, and capacity utilization. Our economists \t\t\tnote that this is not entirely surprising given the impact of the \t\t\tQueensland floods. The AUD soon recovered from the news.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nUSDJPY 80.93 support.
\nEURUSD BULLISH Focus is on 1.3741, break of this is required to \t\t\trefocus towards 1.3862 recent high while support lies at 1.3482.
\nUSDJPY BEARISH Violation of 80.93 would expose 80.54 next. \t\t\tResistance at 82.93.
\nGBPUSD BULLISH Initial resistance at 1.6186 ahead of 1.6279\/99 zone. \t\t\tNear-term support is defined at 1.6037.
\nUSDCHF NEUTRAL 0.9623 and 0.9329 mark the near term directional \t\t\ttriggers.
\nAUDUSD BULLISH Focus is on 1.0200\/56 resistance zone. Support lies \t\t\tat 1.0083.
\nUSDCAD BEARISH The pair targets 0.9832\/20 support zone. Near term \t\t\tresistance at 0.9932.
\nEURCHF BULLISH Pressure on 1.3069; move above this would open up the \t\t\tway towards 1.3118. Support at 1.2867.
\nEURGBP BEARISH Move below 0.8377 is required to confirm the negative \t\t\ttrend. Resistance is at 0.8477.
\nEURJPY BULLISH Focus is on 112.92, break of this would confirm the \t\t\tuptrend and expose 114.01 next. Support zone is at 110.78\/32.<\/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 dollar weakened during the Asia session, clocking up losses against the euro, the AUD, and the NZD. USDJPY remained tightly range-bound all night and traded 82.21-82.45. EURUSD traded 1.3544-1.3636…<\/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-19197","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19197","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=19197"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19197\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=19197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=19197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=19197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}