{"id":19227,"date":"2011-02-09T08:55:43","date_gmt":"2011-02-09T13:55:43","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=19227"},"modified":"2011-02-09T08:55:43","modified_gmt":"2011-02-09T13:55:43","slug":"forex-daily-market-commentary-212","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/02\/09\/forex-daily-market-commentary-212\/","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

US Treasury yields continued to advance during the Asia session, \t\t\thelping to push yield-sensitive pairs like USDJPY and USDCHF even \t\t\thigher. EURUSD traded 1.3613-1.3669, USDJPY 81.92-82.51. US \t\t\tTreasuries are still feeling the effects of yesterday’s weak auction \t\t\tand the 10y yield finally breached 3.75% overnight. Although the S&P \t\t\t500 finished 0.42% ahead, Asian equities are marginally weaker at \t\t\tthe time of writing as China’s latest rate hike weighs on sentiment.
\nRegional Fed Presidents Fisher (2011 voter), Lacker (2012 voter) and \t\t\tLockhart (2012 voter) made public appearances. Fisher and Lacker \t\t\tagain sounded relatively hawkish. Fisher said he expected QE2 to run \t\t\tits course until June, but reiterated his opposition to an \t\t\tadditional round of asset purchases thereafter. Lacker said that \t\t\talthough he would not support an imminent end to QE2, the question \t\t\tof cutting the program short is something to consider at each FOMC \t\t\tmeeting. Lacker said he thinks core inflation has bottomed out, \t\t\tthough he acknowledged the risk of rising headline inflation. \t\t\tLockhart said there is a high bar to raising the current target for \t\t\tasset purchases, but he also stressed now is not the time to adjust \t\t\tthe program. Fed Chairman Bernanke is due to testify at Congress and \t\t\tthe head of the New York Fed Markets Group Brian Sack is scheduled \t\t\tto speak on QE2.
\n EUR<\/span><\/em><\/strong><\/p>\n

Although no agreement has yet been reached on enlarging the \t\t\teffective capacity or widening the scope of Europe’s rescue \t\t\tmechanism, finance ministers continue to express their preferences \t\t\ton how a reformed mechanism should look. Dutch Finance Minister De \t\t\tJager said he opposes using the EFSF to buy sovereign bonds in \t\t\tprimary and secondary markets, and even objects to countries buying \t\t\tback their debt using funds provided by the EFSF. Although he \t\t\tsupports extending the maturity of Greece’s rescue loans so that \t\t\tthey match those offered to Ireland, he is opposed to lowering the \t\t\tinterest rate charged to either country.
\nGerman industrial production for December was slightly softer than \t\t\texpected at +10%y\/y, and the monthly figure surprisingly contracted \t\t\tat -1.5%. But the overall outlook for the German industrial sector \t\t\tremains strong and the ECB is on alert for leakage into additional \t\t\tinflationary pressures. A major German car producer announced a pay \t\t\tdeal for its workers and further events of this kind across Germany \t\t\tcould see the ECB Governing Council up its rhetoric on second-round \t\t\teffects.
\n JPY<\/span><\/em><\/strong><\/p>\n

Moody’s said it would not take action on Japan’s sovereign rating \t\t\ttoday, but warned that the rating could come under pressure in \t\t\tfuture if the government’s fiscal reform agenda does not succeed. \t\t\tThe agency added that the current rating is being supported by \t\t\taffordability of debt servicing, as well as Japan’s ability to \t\t\trefinance its debt.<\/p>\n

TECHNICAL OUTLOOK<\/span><\/strong>
\nEURCHF breaks 1.3069.
\nEURUSD BULLISH Pullback found support at 1.3509; focus is on 1.3741 \t\t\tbreak of which is required to refocus towards 1.3862 recent high.
\nUSDJPY NEUTRAL While support holds at 81.13, initial resistance is \t\t\tat 82.47.
\nGBPUSD BULLISH Expect gains to target 1.6186 ahead of 1.6279\/99 \t\t\tzone. Near-term support is defined at 1.6010.
\nUSDCHF BULLISH Breach of 0.9610 has put focus on 0.9687 ahead of \t\t\t0.9764; support at 0.9524.
\nAUDUSD BULLISH Upside potential targets 1.0200\/56 resistance zone. \t\t\tSupport lies at 1.0083.
\nUSDCAD NEUTRAL Rise through 0.9932 has turned the model to neutral; \t\t\tresistance lies at 0.9978 while support is at 0.9832\/20 zone.
\nEURCHF BULLISH Move above 1.3069 has open up the way towards \t\t\t1.3206\/87 resistance zone. Support at 1.2973.
\nEURGBP BEARISH Recovery through 0.8477 exposes 0.8564; while this \t\t\tresistance holds focus is on the downside with initial support \t\t\tdefined at 0.8389.
\nEURJPY BULLISH Focus is on 112.92, break of this would expose 114.01 \t\t\tnext. 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":"

US Treasury yields continued to advance during the Asia session, helping to push yield-sensitive pairs like USDJPY and USDCHF even higher. EURUSD traded 1.3613-1.3669, USDJPY 81.92-82.51. US Treasuries are still feeling the effects of yesterday’s weak auction and the 10y yield finally breached 3.75% overnight…<\/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-19227","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19227","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=19227"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19227\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=19227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=19227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=19227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}