{"id":20158,"date":"2011-03-16T09:00:34","date_gmt":"2011-03-16T13:00:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=20158"},"modified":"2011-03-16T09:00:34","modified_gmt":"2011-03-16T13:00:34","slug":"forex-daily-market-commentary-fx-markets-remain-slightly-nervous","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/03\/16\/forex-daily-market-commentary-fx-markets-remain-slightly-nervous\/","title":{"rendered":"Forex Daily Market Commentary: FX Markets remain slightly nervous"},"content":{"rendered":"

By GCI Forex Research<\/strong><\/p>\n

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400)<\/strong> <\/strong>
\n
\nUSD<\/em><\/strong><\/p>\n

FX markets remained nervous during the Asia session although sentiment got a small boost after Japanese stocks rebounded. An FOMC statement which sounded a little more optimistic on the US economy also helped. USDJPY and USDCHF remain heavy however. EURUSD traded 1.3954-1.4013, USDJPY 80.69-81.17. The Nikkei rose +5.68%, erasing slightly more than half of yesterday\u2019s losses. A slightly more constructive FOMC statement noted the economic recovery is on a \u201cfirmer footing\u201d and also acknowledged improvements in labor market conditions. The Fed seemed to view the rise in energy prices in the context of what it might mean for inflation rather than growth, a sign that they are beginning to worry more about the outlook for inflation. The FOMC did not acknowledge any risk to growth posed by recent events, even though it seems likely these events have created some additional uncertainty. And the FOMC left little doubt that they would complete the $600 bn program of Treasury purchases by June. Our analysts continue to expect the Fed will allow passive balance sheet contraction to occur in H2 2011
\n
\nEUR<\/em><\/strong><\/p>\n

The euro fell 20 pips after Moody\u2019s downgraded Portugal by two-notches to A3, outlook negative. This brings the rating into line with S&P, but Fitch still rates Portugal two notches higher.
\nEven though the EU surprised with its decisions over the weekend, the press reported that smaller EU states want to change how the size of contributions to the bailout fund is calculated, which points to persistent uncertainty on the fate of the so-called comprehensive solution.
\nWe expect Eurozone CPI for February will match the consensus estimate of +2.4% y\/y.
\nThe ZEW surveys in the Eurozone were slightly disappointing as a result of wider risk aversion in the markets. The current situation index in Germany came in below expectations at 85.40 and the economic sentiment index at 14.10.
\n
\nJPY<\/em><\/strong><\/p>\n

Headlines throughout the session indicated ongoing uncertainty regarding the damaged nuclear reactors in Japan. USDJPY was range-bound but heavy, although yen crosses were a little firmer on the back of much stronger Japanese equities. Finance Minister Noda again reminded investors that he is watching markets closely.<\/p>\n

TECHNICAL OUTLOOK<\/strong>
\nAUDUSD 0.9804 key support.
\nEURUSD BULLISH The pair eyes 1.4003\/36 resistance area, break of this would expose 1.4086. Initial support lies at 1.3855, yesterday\u2019s reaction low.
\nUSDJPY BEARISH Currently holds support at 80.61 ahead of 80.22 key support. Initial resistance defined at 82.00.
\nGBPUSD BEARISH Bearish pressure holds above 1.5964; a break here is required to confirm the bear trend and expose 1.5845. Near-term resistance lies at 1.6200.
\nUSDCHF BEARISH Bearish trend is intact; break of 0.9200 has exposed 0.9000 ahead of 0.8951. Initial resistance is at 0.9369.
\nAUDUSD BEARISH Sharp sell-off yesterday held above 0.9804 key support ahead of 0.9739. Initial resistance defined at 1.0107.
\nUSDCAD NEUTRAL Recovery through 0.9902\/59 has exposed 1.0011\/58 area. Support lies at 0.9735.
\nEURCHF BEARISH Focus is on 1.2727\/06 support zone, while resistance is at 1.2945.
\nEURGBP BULLISH Momentum is positive; break of 0.8692 has exposed 0.8787 Fibonacci level ahead of 0.8818. Near-term support is at 0.8626.
\nEURJPY NEUTRAL Key support lies at 111.96, break of this would pave the way to 110.78 next. Resistance is at 115.02\/29 area ahead of 116.00.<\/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":"

FX markets remained nervous during the Asia session although sentiment got a small boost after Japanese stocks rebounded. An FOMC statement which sounded a little more optimistic on the US economy also helped. USDJPY and USDCHF remain heavy however. EURUSD traded 1.3954-1.4013, USDJPY 80.69-81.17. <\/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-20158","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20158","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=20158"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20158\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=20158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=20158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=20158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}