{"id":4975,"date":"2009-11-26T08:28:21","date_gmt":"2009-11-26T13:28:21","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4975"},"modified":"2009-11-26T08:28:21","modified_gmt":"2009-11-26T13:28:21","slug":"forex-market-daily-update-nov-26","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/26\/forex-market-daily-update-nov-26\/","title":{"rendered":"Forex Market Daily Update Nov.26"},"content":{"rendered":"
\"\"<\/a><\/div>\n

 <\/p>\n

Market Movers of the Day<\/span><\/strong><\/p>\n

Europe<\/span><\/strong><\/p>\n

UK GDP falls –0.3%<\/strong> QoQ as expected<\/p>\n

UK Index of services down –0.1%<\/strong><\/p>\n

German Gfk Consumer confidence at 3.7<\/strong> <\/span>slightly disappointing<\/p>\n

Americas<\/span><\/strong><\/p>\n

US Durable goods orders fall -0.6%<\/span><\/strong> in Oct<\/p>\n

US Initial Jobless claims at 466k<\/strong> <\/span>Vs 500K<\/strong> expected<\/p>\n

US Personal consumption expenditures rise 0.7%<\/span><\/strong> MoM<\/p>\n

US Core personal consumption expenditure rise 0.2% <\/strong>MoM<\/p>\n

US Personal consumption deflator at 0.2%<\/strong> MoM<\/p>\n

US Personal income rise 0.2%<\/strong><\/p>\n

US New Home Sales strong rising 6.2%<\/strong><\/span> MoM<\/p>\n

US Reuters\/Michigan consumer sentiment at 67.4<\/strong> largely in line with expectations<\/p>\n

EIA Crude oil stocks change at 1M<\/strong> ,lower than expected<\/p>\n

<\/strong><\/p>\n

The Overall Sentiment<\/span><\/strong><\/p>\n

Forex<\/span><\/strong><\/p>\n

\"120\"<\/span><\/strong><\/p>\n

The broad Dollar selloff which started around May this year and seemed to trim itself into range only days ago has finally broken key resistance levels and pushed the Dollar into record lows across the board. The rally was fed mainly by better than expected US economic data with Initial Jobless claims falling under the 500K mark<\/strong> for the first time in more than a year reading 466K <\/strong>which positively surprising investors which were expecting a 500K<\/strong> reading according to various pulls. In addition new home sales which is considered to be closely linked with economic recovery rose strongly by 6.2%<\/strong> MoM mainly attributed to led tax breaks for new home buyers. The combination of the better than expected economic data and the statements coming from the Fed that it is currently not worried by the Dollar \u201corderly\u201d decline spurred massive outflows from the Dollar and into high yielding assets and currencies alike ,with \u00a0counter Dollar carry trades continuing to mount. The Dollar fell to as low as 1.515$<\/strong> per Euro, the Swiss Franc moved beyond parity trading a few points shy of 0.99 <\/strong>CHF to the Dollar and the Yen surprised by moving above a 14 Year high against the Dollar trading below 87<\/strong> this morning. The Sterling also gained rather strongly against the Dollar trading around 1.67$<\/strong> as the UK GDP figure was largely in line with expectations. However the Sterling which is highly linked to appetite for risk which was elevated during the trade failed to reach new highs against the Greenback.<\/p>\n

<\/strong><\/p>\n

Equities<\/span><\/strong><\/p>\n

The better than expected economic data fueled positive sentiment for Equities. In Europe benchmark indices advanced with the DAX gaining around 0.5% and the FTSE higher by 0.77%<\/strong>.In the US gains were more modest with the S&P higher by 0.45%<\/strong> and the DOW higher by a modest 0.29%<\/strong> but most importantly both indices reached a record for the year. Among the best performers were Caterpillar and Home depot mainly in reaction to the strong homes sales rise.<\/p>\n

\"212\"<\/p>\n

Commodities<\/span><\/strong><\/p>\n

Heavy Dollar bids, remote rate expectations and moved the Gold to yet another historical record ever so close to the 1200$<\/strong> mark reaching to as 1195<\/strong> an ounce marking it as one of the best performing assets for the recent period. Silver also edged higher trading around 18.8$<\/strong> an ounce but failed to surpass 19$<\/strong> and in the Energy space oil gained as growth bets were on and EIA crude stocks were lower than expected. The black gold edged around 78$<\/strong> a barrel just 2$ short of the 80$<\/strong> mark.<\/p>\n

<\/strong><\/p>\n

The Day Ahead<\/span><\/strong><\/p>\n

The Japanese Yen is expected to be at the centre of attention as the day will be largely loaded with Japanese economic data. Highly important economic figures are due, such as the National CPI ex-fresh foods \u00a0the main index for inflation in Japan and Japanese unemployment which is expected to rise to 5.4%.The combination of inflation readings which pointed deflation \u00a0in the last reading alongside the growing debate between the BoJ and the Japanese government over handling deflation and the Yen which is at 13 Years high against the Dollar is expected to bring the Japanese currency to the centre of attention with potential volatility during the Asia session.<\/p>\n

Technical Analysis<\/p>\n

USD\/CAD, Daily<\/p>\n

\"\"<\/a><\/p>\n

Bullish Scenario<\/strong>–<\/span> A close above 1.0720 <\/strong>would signal the pair is moving to retest the bearish trend line around 1.08<\/strong><\/p>\n

Target -1.076<\/p>\n

Bearish scenario<\/strong>– <\/span>A break of 1.04<\/strong> downwards would generate a bearish swing, targeting the 1.02 support and under.<\/p>\n

Target A<\/strong>-1.02<\/p>\n

Target B<\/strong>-1.012<\/p>\n

Daily Forex Market Analysis provided by eToro<\/span><\/a><\/strong><\/p>\n

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don\u2019t trade with money you can\u2019t afford to lose.<\/p>\n

\u00a9 2009 eToro Blog.<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By eToro – The broad Dollar selloff which started around May this year and seemed to trim itself into range only days ago has finally broken key resistance…<\/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-4975","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4975","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=4975"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4975\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}