Boehner’s ‘Plan B’ dead on arrival
News has just hit the newswires that there will be no vote on ‘Plan B’ this evening due to lack of Republican support. Speaker John Boehner has pulled his own bill, and his office has just released a statement that says, in part: “The House did not take up the tax measure today because it did not have sufficient support from our members to pass. Now it is up to the President to work with Senator Reid [(D)] on legislation to avert the fiscal cliff.” This is significant because the Speaker could not persuade his own Republican members to back his plan against President Obama’s offers and proposals on the matter. The US dollar is well bid across the board on this news, as market participants flee to safety.
The UK government’s monthly budget update for November is on offer in the European session ahead, expected to show a deficit of £14.1B on-month, which would widen the annual deficit to £76.0B. “If realized, this is a bit larger than the annual deficit for the year ending June of -£74.2B and highlight the ongoing challenge confronting the UK government in reducing its deficit,” says Rabobank International.
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Forex Economic Calendar
2012-12-21 09:30 GMT | United Kingdom. Gross Domestic Product (YoY) (Q3)
2012-12-21 13:30 GMT | Canada. Gross Domestic Product (YoY) (Oct)
2012-12-21 13:30 GMT | United States. Durable Goods Orders (Nov)
2012-12-21 14:55 GMT | United States. Reuters/Michigan Consumer Sentiment Index (Dec)
Forex News
2012-12-21 05:40 GMT | GBP/USD support at 1.6230 next level to watch – V.Bednarik
2012-12-21 03:32 GMT | EUR/JPY stalls the decline at fresh session lows 111.62
2012-12-21 03:21 GMT | USD/JPY threatening to break below 83.80
2012-12-21 01:45 GMT | AUD/USD breaks below 1.0450 to fresh weekly lows
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EURUSD :
HIGH 1.32522 LOW 1.31799 BID 1.32123 ASK 1.32127 CHANGE -0.24% TIME 08 : 20:45
OUTLOOK SUMMARY : Up
TREND CONDITION : Downward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Medium
MARKET ANALYSIS - Intraday Analysis
Upwards scenario: Further price appreciation might face next resistance level at 1.3227 (R1), break here is required to open way towards to targets at 1.3247 (R2) and 1.3267 (R3). Medium-term bias is still positive. Downwards scenario: Fresh low at 1.3180 (S1) acts now as important psychological support level. Decrease below it might enable bearish forces, targeting 1.3160 (S2) and 1.3141 (S3) in potential.
Resistance Levels: 1.3227, 1.3247, 1.3267
Support Levels: 1.3180, 1.3160, 1.3141
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GBPUSD :
HIGH 1.62831 LOW 1.62407 BID 1.62539 ASK 1.62549 CHANGE -0.14% TIME 08 : 20:46
OUTLOOK SUMMARY : Up
TREND CONDITION : Downward penetration
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium
Upwards scenario: Technically, market sentiment remains bullish and we expect further instrument appreciation on the medium-term perspective. Pair is moving towards to our next resistance level at 1.6265 (R1). Clearance here would suggest next targets at 1.6279 (R2) and 1.6292 (R3). Downwards scenario: Possibility of further correction ahead is high on the shorter-term perspective. Below the support level at 1.6240 (S1) locates initial retracement targets at 1.6226 (S2) and 1.6214 (S3).
Resistance Levels: 1.6265, 1.6279, 1.6292
Support Levels: 1.6240, 1.6226, 1.6214
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USDJPY :
HIGH 84.443 LOW 83.858 BID 84.119 ASK 84.123 CHANGE -0.31% TIME 08 : 20:47
OUTLOOK SUMMARY : Neutral
TREND CONDITION : Sideway
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Medium
Upwards scenario: USDJPY did not find priority in direction yet. Climb above the next resistance level at 84.23 (R1) might provide market with sufficient bullish power and attack next targets at 84.35 (R2) and 84.47 (R3) later on today. Downwards scenario: Next attractive level for the downside development locates at 83.83 (S1). Loss here might take the pair towards to eventual targets at 83.72 (S2) and 83.59 (S3).
Resistance Levels: 84.23, 84.35, 84.47
Support Levels: 83.83, 83.72, 83.59
Source: FX Central Clearing Ltd, (http://www.fxcc.com)