{"id":5377,"date":"2009-12-18T08:14:42","date_gmt":"2009-12-18T13:14:42","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5377"},"modified":"2009-12-18T08:14:42","modified_gmt":"2009-12-18T13:14:42","slug":"forex-daily-market-review-dec-18-09","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/18\/forex-daily-market-review-dec-18-09\/","title":{"rendered":"Forex Daily Market Review Dec 18, 09"},"content":{"rendered":"
\"\"<\/a><\/div>\n

 <\/p>\n

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

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

Asia-Pacific<\/strong><\/p>\n

*New Zealand Business Confidence down to 38.5<\/strong> from a previous 43.4<\/strong><\/p>\n

*Japanese Leading Economic Index up to 89.4<\/strong> from 87.5<\/strong><\/p>\n

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

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

*UK Retail Sales surprised for the worst at -0.3%<\/strong> MoM<\/p>\n

*UK CBI Distributive Trades better than expected at 13<\/strong><\/p>\n

*Swiss ZEW Economic Expectations down to 54<\/strong> from a previous 56.4<\/p>\n

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

*Canadian CPI higher than expected at 1.0% <\/strong>annualized<\/p>\n

*Canadian Core CPI higher than expected at 1.5%<\/strong> annualized<\/p>\n

*US Initial Jobless Claims worse than forecasted at 480K<\/strong><\/p>\n

*US Continuing Jobless Claims better than forecasted at 5186K <\/strong><\/p>\n

*US Philadelphia Fed Manufacturing Survey surprised for the better at 20.4<\/strong> <\/strong><\/p>\n

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

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

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

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

US stock markets dropped driven by losses from Citigroup, which sold shares at a discount, and negative sentiment from an increase in Initial Jobless Claims. Yesterday\u2019s hawkish rhetoric from the Fed has also prompted investors to sell equities and turn to the Dollar for safety. At 20:00 GMT, the S&P was down by 0.8%<\/strong> and the Dow had lost 1%<\/strong>. In Europe, the British FTSE 100 dropped 1.9%<\/strong>, its biggest decline in three weeks, as the UK Retail Sales surprisingly fell 0.3%<\/strong> in November. The downgrading of Greece\u2019s credit rating continues to weigh on European markets and financial institutions. The DAX declined 1%<\/strong>, led by losses from Germany\u2019s largest banks.<\/p>\n

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

The Dollar strongly advanced across the board after the Fed left rates unchanged yesterday but outlined the conclusion of most of its emergency measures by February 2010. EUR\/USD reached its lowest level in three months at 1.43<\/strong>. Commodity-linked currencies retreated as investors abandon high-yielders and look for the Dollar and Yen\u2019s safe-haven status. The Australian dollar extended losses below 0.89 against its US counterpart and USD\/CAD climbed to the 1.07<\/strong> level. The Pound dropped on disappointing Retail Sales numbers, with an intraday visit underneath 1.61<\/strong> against its US peer. The Yen gained versus all majors with USD\/JPY still battling around the 90<\/strong> level.<\/p>\n

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

Gold plummeted below $1100<\/strong> as the Dollar\u2019s strength and the prospects of closer-than-expected rate hikes diminished the demand for the yellow metal. Silver dropped as well, approaching the $17<\/strong> level. Crude Oil retreated in early trading hours after yesterday\u2019s rally but recovered to sustain trading around $72.50<\/strong>.<\/p>\n

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

The day will start with Bank of Japan\u2019s rate decision at the end of a two-day policy meeting, for which market expectations are pointing to an unchanged 0.10%<\/strong> as deflation continues to loom over Japanese economy. Moving to the European session, German PPI is expected to show a 0.2%<\/strong> rise for November, and positive figures are forecasted for both the IFO Expectations and Business Climate, anticipating positive sentiment in the Euro-zone for the short-term. UK Public Sector Net Borrowing and the EU Trade Balance are also due for release. Canada Wholesale Sales is estimated to show a 0.3%<\/strong> increase for October in the only economic piece of data coming for the Americas.<\/p>\n

Technical Analysis<\/strong><\/p>\n

EUR\/GBP DAILY<\/strong><\/p>\n

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

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

Bullish Scenario<\/strong>– The support at 0.8835<\/strong> holds and the cross bounces back up developing a new bullish cycle.<\/p>\n

Target A<\/strong>– 0.8975<\/strong><\/p>\n

Target B<\/strong>– 0.9150<\/strong><\/p>\n

Bearish scenario<\/strong>– A break of 0.8835<\/strong> downwards generates a strong bearish swing, targeting the 0.87<\/strong> support.<\/p>\n

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

Target A-0.87<\/strong><\/p>\n

Target B<\/strong>–0.8550<\/strong><\/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 Dollar strongly advanced across the board after the Fed left rates unchanged yesterday but outlined the conclusion of most of its emergency…<\/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-5377","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5377","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=5377"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5377\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}