Forex Morning Report - March 15

Bobbys Corner-Open Market-March.15.2010

Good Morning:

GBP was the main driver in overnight markets as Moody’s warned the UK (and US) of losing their AAA rating, The UK’s political problems and poor UK housing data also contributed to sterling’s woes.

In the Euro Zone, no political decisions have been made  regarding an aid package for Greece.  Greece has not asked for any direct aid as of yet.  The Greek government insists it will work out it’s debt problems themselves.   EU ministers begin a 2 day meeting in Brussels today to discuss the Greek debt issue.

World equity markets were mostly lower-and US futures are also pointing to a lower opening this morning.
Commodities were mostly lower-lead by metals.  Concerns that China and India may restrict economic growth to curb inflation, lead to the drop.

Oil:$80.79                                                  Gold:$1106.20

HAVE A GREAT DAY & GOOD LUCK

Eurozone Employment Change

The eurozone m/m employment change was -0.3% for February; worse than the survey of 0.2% and prior reading of 0.3%. The market had no reaction.

Swiss PPI

Swiss PPI for February came in at -0.3%; worse than it’s forecast of 0.2% and prior reading of 0.3%. The market showed a very limited reaction to the release.

Sterling breaking to downside

Since Friday’s move up from 1.5050 to 1.5217 Gbp/Usd has been trading sideways. It appears the pair might be ready to retrace this move. It has recently broke below the 38.2% Fibo at 1.5153 and is currently flirting with the 50% Fibo at 1.5133. The 61.8% Fibo should be a more formidable obstacle at 1.5114. If the pair can gain enough momentum and break below , it will then have 1.5050 in its sights. If it holds a move back to 1.5150-55 is likely.

Jananese Household Confidence

The market was unaffected by a worse than expected household confidence number out of Japan coming in at 39.8 versus the forecast of 40.6, but was slightly better than it’s prior showing of 39.0

Moody’s Concerns Have Risk Pairs Lower

Risk pairs have been under pressure since opening higher for the week, on reports that Moody’s rating agency is concerned  that the UK and US could be moving closer to losing there AAA debt rating. Although we have heard this rhetoric before, the market continues to react to this headline. Looking at the daily chart below, we see the pair could find support at the former trendline resistance and  move back up could be defended by the 38.2% retracement of the move in 2010.

Forex Midday Report - March 12