Daily Fundamentals - 10.07.11

Having trouble viewing this email? Click here

*    Dollar Breaks Critical Support, Focus Returns to Risk Ahead of NFPs *    Euro: An ECB Hold on Rates Won't Provide Lift for Long Against Financial Crunch *    British Pound Tumbles Despite Market's Expectations for BoE Bond Purchases *    Canadian Dollar Trades Prepare for Employment Data-based Volatility *    Japanese Yen: Main Opposition Party Calls for More Active Yen Intervention *    Swiss Franc: Record SNB Holdings a Sign of an Effective Floor? *    Gold Manages a Slow Advance between Stimulus and Crisis Measures Written by: John Kicklighter, Senior Currency Strategist Dollar Breaks Critical Support, Focus Returns to Risk Ahead of NFPs The standard-bearers for sentiment improved through Thursday's close despite a notable deterioration in the European financial situation. Regardless, an advance from both our favored gauge for risk appetite (S&P 500) and the greenback's primary counterpart (the Euro); there was enough pressure on the extreme safe haven to push it back below the same key support that had stood as resistance through the final weeks of September. If we were to look at EURUSD, that technical boundary would be the 1.3400 level; and for the Dow Jones FXCM Dollar Index (ticker = USDollar), the support was in the big 10,000 figure. From a purely technical approach; this reads like a false breakout that is transitioning into a reversal. Having forged an impressive rally against its fundamentally-troubled counterparts (like the euro) and more risk-attuned alternatives (like the Australian and New Zealand dollars); a correction seems logical. Yet, fundamentals are critical to this equation...    Download the Full Article Best regards, DailyFX Research Team research@dailyfx.com DailyFX Home | research@dailyfx.com | Contact US ©2009 DailyFX. All Rights Reserved. Forex Capital Markets, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. Forex Capital Markets, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Forex Capital Markets, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.

Forward email This email was sent to autoforextradingpro@gmail.com by jkicklighter@dailyfx.com |   Instant removal with SafeUnsubscribe™ | Privacy Policy. Forex Capital Markets | Financial Square 32 Old Slip | New York | NY | 10005