EURUSD breaks through 100 day MA at 1.3423

Support now between 1.3412-23. The 1.3412 is the 38.2% on the daily chart. The 1.3423 is the 100 day MA. Next upside target is the 1.3498 level (high from December) and 1.3578

Gold at 100 and 200 hour MA. Looking for a move away

The gold price has moved above the 100 and 200 hour MA (blue and green line) and is due for a move away from these key technical levels today. The price being above is bullish for the pair at the moment.

Total Net Buying of LT US assets surge

The total net buying surged by $85.1 billion in November.  Treasury bond purchases rose sharply to 61.719 billion from 24.739 billion in October.

Bank of Canada keeps rates unchanged

• Sees faster global growth
• Further increases to be carefully considered
• Still considerable stimulus in market
• Strong C$ is hurting recovery
• GDP 2.4% in 2011 and 2.8% in 2012 (vs 2.3% and 2.6% previously)
• Sovereign debt  to curb EU growth

To read the full statement click on the following link:

http://www.bankofcanada.ca/en/fixed-dates/2011/rate_180111.html

The USDCAD has moved above the 100 hour MA and approaches the 200 hour MA and 38.2% retracement target at the 0.9906-11 levels

Bobbys Corner-Open Market-Jan.18.2011

Good Morning:

Risk took center stage in overnight trading after comments from Russian Deputy Prime Minister Zhukov that Russia may be interested in investing in Spanish debt.   Both Russia and China do not want to see the Euro lose it’s position as a potential reserve currency-so today’s comments show a clear sign that the troubled EU economies will most probably receive economic support from outside the region.
The EUR/USD pair jumped over 1.3425-with better than expected ZEW reading from the EU and strong Spanish T-Bill auction.  GBP/USD takes out the 1.6050 level on good CPI data.

Asian equity markets were nmixed and European equity markets  are higher. US Futures are also higher at this time.

Oil:$91.25                                                                Gold:$1375.40

HAVE A GREAT DAY & GOOD LUCK

Bank of Canada decision. What are the key levels to watch

EU pledges tougher stress tests

The test will take into consideration sovereign debt risk and liquidity. The tests are expected to start as soon as February.

US Empire State index up but weaker than expected

Index comes in at 11.92 vs 12.50 expectations but up from a revised 9.89. The gain was helped by exports and business equipment demand. The components all showed good gains.

New orders 12.4 vs 2.0 last month
Shipments 25.4 vs 7.2 last month
Employment 8.4 vs -3.4 last month