Fed’s Dudley says need more jobs momentum
In a Q&A session Fed’s Dudley has said the following:
- There is a need for more forward momentum in jobs creation
- Economy is cycling up in a pretty significant way
- Quantitative Easing has led to more accomodative markets and it has been more helpful
USDJPY wanders toward trendline support at 83.21 area in quiet trading
The USDJPY is wandering lower in quiet NY trading. The trendline support comes in at the 83.21 level. A move below that line comes in at 82.93. The 100 hour MA comes in at the 82.87 (blue line in the chart above).
The pair has been moving higher of late. Last week, the price moved above they key 100 day MA (blue line in the chart below) and moved to trendline and 2011 high resistance against the 83.55 and 83.67 levels respectively (see daily chart). These levels will be the next key target levels to get through in order to keep the bullish trend moving. A move above will next target the 84.40-50 area.
Today Japan GDP came in better than expected. That combined with Japan exporters buying of JPY as they repatriated funds back to Japan, led to a decline in the USDJPY. The fall took the pair to support and the market reversed.
Fed’s Dudley on the Wires
Says:
- Predicts ‘substantial amount of slack in labor markets’
- New York Fed district economy paused in 4th quarter
- Sees signs of ‘pick-up’ in pace of U.S. economic growth
- U.S. housing industry ‘stuck at a very low level’
- New Jersey economy declined a bit through end of 2010
- Inflation, unemployment rates ‘unsatisfactory’
- Household deliquesces ‘begin to subside’
- Unemployment ‘remains stubbornly high’
- ‘Conditions are in place for stronger growth’
- Expects ‘continued stability in inflation expectations
- QE helping to spur U.S. economic growth
- U.S. economy ‘healthier’ but ‘not yet well’
Bobbys Corner-Open Market-Feb.14.2011
Good Morning:
The Euro had a difficult overnight session. Concerns over the fate of German bank West LB, along with the resignation of Bundesbank President Weber, added woes to Germany’s banking sector. Negotiations over the weekend produced no results on the fate of the bank-and the European Commission has set tomorrow as a deadline to revamp the troubled bank.
On another note-Mr. Weber was widely expected to be a top candidate to replace Jean Claude Trichet as president of the ECB. His resignation leaves a void in the leadership role at the central bank.
The dollar rallied overnight-and pushed the EUR/USD pair lower by 100bps from the opening in Asia.
Asian equity markets were higher-Europe is mixed-and US Futures are slightly lower at this time.
Oil:$85.57 Gold:$1357.80
No Major Data due out today.
HAVE A GREAT DAY & GOOD LUCK
Trading Course Lesson 3 Greg and Shawn Feb 15
Lesson 3 of the FXDD trading course with Greg and Shawn feb 15 – Register now
The Week Ahead from FXDD
If you would like the PDF report of “The Week Ahead” used to create this video, you can opt in to the Daily FXDD Forex commentary email distribution list by sending me an email at greg@fxdd.com
Have a great weekend,
Greg Michalowski
The Midday Forex Commentary available for viewing
Gold falls (a little) on Mubarek resignation
With Mabarek’s resignation, a reversal in Gold would be expected on the idea of less tension should lead to less demand for safe haven assets like gold.
The price has indeed fallen, but the price remains above the 100 hour MA at the 1359.50 level. As a result, the technicals are still fighting between the 100 hour MA and resistance above on the daily chart (see below) against a series of resistance levels including the 100 day MA, the 50% retracement of the move down from the January 2011 high to the 2011 low, and the underside of the trendline (see chart below).
So although the there is some minor selling, the market remains contained with neither bulls or bears taking control.
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