Daily FX Commentary, January 23, 2012
Monday, January 23, 2012 at 5:02PM Expected Range USD/CAD: 1.0065 – 1.0150
Gold: $1670.5
Oil: $99.20
A relatively quiet start to the week as markets prepare for a week full of meetings, economic data, earnings and headlines. Risk continues to be on even if mildly so. EUR/USD is trading either side of 1.30 this morning, the first time we have seen this key technical level since the start of the year. Some might chalk this up to a market short squeeze. The Australian dollar has also risen to its highest levels breaching 1.05 against the USD for the first time since Halloween of last year. Rumor has it that Greek bondholders have given their maximum haircut level and are awaiting a response from EU leaders as they meet today to discuss. The EU has also finalized its oil embargo against Iran over the weekend.
The earnings reporting in the US will continue this week with names including such American bellwethers as Halliburton, McDonald’s and Boeing. The US Republican Primaries continue with Newt Gingrich winning the last one in South Carolina, showing the battle for the party’s leadership continues to show no clear leader at the moment.
This week’s FOMC meeting looks to be the focus of the week ahead as this meeting marks the first time they will release a forecast on interest rates, as they see it. Historically the FOMC has never given forecasts; this is part of Mr. Bernanke’s push for more transparency at the Federal Reserve. This week will also finish with the infamous Davos conference, where the headlines will vary from what Ms. Lagarde’s warnings on the global economy and requests for more monies from world leaders, to what they will be serving with afternoon tea.
“A public-opinion poll is no substitute for thought.”
-Warren Buffett
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