The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Singapore tightens monetary policy in an effort to curb inflationary pressure.
  • EUR shrugs off debt concerns as the market considers that the EU will be able to manage the issues internally.
  • Gold breaks new highs as metals march higher on inflation concerns.
  • Oil advances on reports that Saudi Arabia cut back production this month
  • Equity markets closed recovered from a soft start to close with Dow up 0.1% and S&P500 closing where we started as did the Nasdaq showing gains of 0.05%
  • Chinese data release & US CPI results tonight have traders eagerly awaiting the results

AUD/USD
AUD traded the upward trend channel quite well over the past couple of days and continued to last night. We are however approaching not only the top of the channel, but also the previous post-float highs of 1.0580/90 where the sellers emerged last time. Traders are content to be short here but leaving a tight stop loss with everyone else above 1.0600/10

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XAU/USD
Gold traded the range initially but savagely broke higher as concerns surrounding worldwide inflation continue to gather pace. All metals markets were higher last night with Silver up over 5% and gold breaking record levels. In these kinds of markets traders are successful going with the moves rather than against them but traders are concerned of a reversal.
EUR/USD
EUR was initially sold from the highs as the sellers emerged at resistance and European equity markets were sold overnight. The bounce was savage as reports emerged that Europe should now be able to internally cover any issues in the restructuring of sovereign debt.

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GBP/USD
UK consumer confidence grew last month putting credence behind a consumer driven recovery that could see interest rates rising in the short term. This saw GBP bought during the European session but we seem to be running out of steam at short term resistance around 1.6380. Traders content to sell rallies around that level looking for a retracement back towards 1.6300

USD/JPY
USD/JPY lower yesterday as we broke through the 83.50 support level. The bounce from 83.00 support was very strong though and traders are cautiously bearish at current levels, but aware that a break back through 84.00 could be seen as a quite bullish signal. However they seem content to be short looking for a drift lower back towards support at 83.00/10 initially

AUD/JPY
After initially being sold lower AUDJPY found a base around the 87.00 support mentioned in yesterday’s report. We now start the Asian session at resistance and traders seem content to be short around current levels looking for it to drift back lower towards 87.00 support playing the range from the short side.

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OIL
Oil found a base yet again around the 105.50/106.00 region as a report out last night noted that Saudi Arabia had cut back it’s production over the past month. We quickly broke up through the previous resistance of 108.00 but the market didn’t really go on with it so traders are now looking for consolidation before going with the next move

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