{"id":5676,"date":"2010-01-06T07:34:11","date_gmt":"2010-01-06T12:34:11","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5676"},"modified":"2010-01-06T07:34:11","modified_gmt":"2010-01-06T12:34:11","slug":"forex-daily-market-review-january-6-2010","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/06\/forex-daily-market-review-january-6-2010\/","title":{"rendered":"Forex Daily Market Review January 6, 2010"},"content":{"rendered":"
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 <\/p>\n

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

German Unemployment change drops by -3.00k<\/p>\n

Germany\u2019s unemployment rate held steady at 8.1%<\/p>\n

Prices in the Euro-zone came out as expected at 0.9%<\/p>\n

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

Pending home sales drop 16% vs. an expected -2.8%<\/p>\n

Factory order climb 1.1% against economist\u2019s expectations of 0.5%<\/p>\n

Daily Market Review Jan 06, 10<\/strong><\/p>\n

The major indices were put to the test yesterday, after a positive start turned into a mixed session. After jumping higher at the start of the session, the two major indices; the Dow Jones and S&P500 dropped into negative territory. Housing data and Factory orders were the culprits of yesterday\u2019s session, both having an intraday effect.<\/p>\n

Pending home sales dropped 16% in November, the sharpest decline since the National Association of Realtors started tracking the data, in 2001. The report broke a major 10 month rally, which had been associated with increasing home sales since February. Despite the negative housing data, which is clearly showing that the sector is still struggling, Factory Orders hit the board showing improvement. New Orders for manufactured goods rose 1.1% in November, compared to economists\u2019 expectations of a 0.5% figure. According to the Federal Reserve Bank of Cleveland, nondefense capital goods excluding aircraft bounced in November by a whopping 3.6%, while shipments continued to show improvement, increasing by 1%.<\/p>\n

The nine major sectors presented a mixed picture with financials closing the day with a 1.84% gain. The lagger of the day was utilities, closing down by -1.19%. The Broader market index finished the session with a minor gain of 0.31% after presenting a volatile session. From a technical point of view the index is still trading at its recent highs, climbing higher due to the popular January affect.<\/p>\n

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

On the Forex market the Dollar index bounced back, closing the session with a 0.14% gain, after trading most of the session mixed. From a technical point of view the Dollar index is now finding minor stability around its prior support level formed during last August at 77.48 points. Even though today\u2019s candle is currently presenting a hammer, the course of the day will provide further confirmation as to whether the Dollar is finding proper support around current levels.<\/p>\n

On individual pairs the GBP\/USD lost further ground after the Wall Street Journal reported that the U.k\u2019s government could face an 80% chance of a credit rating downgrade due to their deficit problems. According to the paper gilts could increase dramatically once the government stops its bond purchasing program, a situation which could have a negative effect on the GBP.<\/p>\n

From a technical point of view the GBP\/USD dropped throughout the session and is now coming down to test support of $1.5868. Indicators, including the RSI are still trading at reasonable levels, but could become oversold around the upcoming support level.<\/p>\n

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

The USD\/JPY also presented an interesting session, breaking trend line support. The move is currently being attributed to the upcoming NFP result, an event which could rattle the markets. Bullish traders preferred to take some money off the table, ahead of the major event and also due to recent news headlines stating that the Japanese government decided to accept Fujii\u2019s resignation. During early morning hours the Dollar regained strength versus the Yen and is now testing its breakout.<\/p>\n

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

Looking forward, today\u2019s major events will be the ADP Nonfarm Employment Change and the FOMC meeting minutes. The employment report is expected to show a -75.00k decrease during the month of November, compared to October\u2019s fall of -169.00k. One must note that even though the data is classed as market-moving, the report measures only the monthly change of the nonfarm private employment while the upcoming NFP result measures all non-farming businesses.<\/p>\n

Daily Forex Market Analysis provided by eToro<\/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><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By eToro – Looking forward, today\u2019s major events will be the ADP Nonfarm Employment Change and the FOMC meeting minutes. The employment report…<\/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-5676","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5676","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=5676"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5676\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}