Month: September 2010

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD

The dollar weakened against all of the G10 currencies as risk-seeking continued with equities up 1% and oil back above $77. Treasury yields also came down as investors digested the less stringent than expected Basel II negotiations and the decent Chinese economic data. The only data release of the day was the monthly budget statement, which showed a deficit for the 23rd consecutive month, the longest stretch on record. Retail sales data will help show how the consumer has weathered the recent soft patch in data. We are expecting a moderate rise in August, though some tepid auto sales could weigh on the headline figure.

EUR

The euro benefited from the renewed risk-seeking but the German ZEW survey data will be another important step to see if softer times are ahead for the Eurozone. Consensus estimates are for a dip in the economic sentiment reading but an increase to 50.0 for the current situation.
ECB President Trichet said what was decided on Basel III would not hamper the global recovery and said he saw no deflation risk in advanced economies for now. Trichet did not offer any comments on monetary policy.
JPY

USDJPY remained heavy ahead of the DPJ leadership election as investors put some more money to work across asset classes. Press reports suggest the race is still too close to call and given recent price action, there appears more scope for an upside USDJPY surprise should Ozawa win given that it would inject uncertainty into the future policies of the DPJ and also given his outspoken support of FX intervention. Results are expected around 0600GMT.
GBP

Investors have been concerned about elevated inflation readings but BoE MPC members believe the data should start to come back down. We should see slight easing in the y/y figures for both CPI and RPI, which could temper investor expectations for the BoE at this stage in the recovery.

TECHNICAL OUTLOOK

EURUSD BEARISH Violation of 1.2588 and 1.2434 thereafter is required for the confirmation of bearish trend. Resistance holds at 1.2919.
USDJPY BEARISH Trend is bearish; there is little support till 79.75 key level. Short-term resistance is defined at 85.23.
GBPUSD BEARISH Stalled above 1.5297; a break here would expose 1.5125/15 ahead of 1.4906. Near-term resistance lies at 1.5565 ahead of 1.5731.
USDCHF BEARISH Focus is on the downside with initial support lying at 1.0061 ahead of 0.9918. Near-term resistance comes in at 1.0278 ahead of 1.0466.
AUDUSD BULLISH Bullish pressure targets 0.9389; break of the level would favour another run towards 0.9406. Near-term support is at 0.9171 ahead of 0.9055.
USDCAD NEUTRAL 1.0673 and 1.0108 define the next bull and bear triggers respectively.
EURCHF BEARISH Sell-off from 1.3924 found support at 1.2766; break of the level would expose 1.2626 ahead of 1.2403. Resistance at 1.3163.
EURGBP NEUTRAL Model is neutral; 0.8390 and 0.8142 mark key near-term directional triggers. 0.8068 defines a key support level.
EURJPY BEARISH Focus is maintained on 105.44, next support at 100 psychological level. Resistance is at 111.19.

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

EUR/USD

Extends recovery off 1.2643 higher low, to attempt at 1.2920, the upper boundary of the recent 1.2624/1.2920 range. Break higher is required to resume the near-term recovery and focus 1.2960/1.3049, Fibonacci levels, otherwise, the recent structure remains negative for test of 1.2643/24.

Res: 1.2920, 1.2931, 1.2960, 1.3000

Sup: 1.2843, 1.2823, 1.2792, 1.2775

GBP/USD

Continues to trade within an hourly falling channel, with scope set for retest of channel support, currently near 1.5250. Multi-week structure also suggests the end of a complex corrective phase off 1.3500. Regain of 1.5486, however, would ease bear pressure.

Res: 1.5464, 1.5492, 1.5532, 1.5596

Sup: 1.5343, 1.5295, 1.5250, 1.5235

USD/JPY

Corrective phase off 83.33 stalled at 84.37 yesterday, with reversal followed. Channel loss triggered a drop to breach 83.25, trendline drawn off 83.58, 24 Aug low. This now opens 81.88, May 1995 low short-term, with initial targets at 82.98/30. Upside, 83.73/83 now caps while 84.37 becomes key near-term resistance.

Res: 83.83, 84.17, 84.47, 84.62

Sup: 82.98, 82.30, 81.88, 81.50

USD/CHF

Rejection at 1.0276, near 38.2% of 1.0630/1.0060 decline, confirmed the underlying bear structure. Loss of critical support at 1.0065/60, multi year bear continuation pivot, would project a significant weakness longer-term, with 0.9916 seen first. Upside, 1.0071 caps for now.

Res: 1.0071, 1.0097, 1.0132, 1.0170

Sup: 0.9980, 0.9960, 0.9949, 0.9916

Source: ForexYard

The U.S. dollar fell to a fresh 15-year low against the Japanese yen ahead of a big leadership election in Japan. The greenback also sank against the euro during Tuesday’s trading.

Economic News

USD – Dollar Falls Ahead of Japan Leadership Vote

The U.S. currency was near a 1-month low against a basket of currencies after suffering its steepest fall against the euro in two months as rising investor risk appetite helped the European currency.

The dollar fell to a 9-month low against the Swiss franc on Tuesday as market players scaled back investments in risk currencies and poured funds into low-yielding currencies such as the yen and the franc. The dollar fell 0.2% to 1.0050 franc, its lowest since December of last year.

The greenback traded broadly flat against the euro on Tuesday, at $1.2870, after losing more than 1% against the common currency on Monday. The dollar touched 83.23 yen, the lowest level in 15 years, but later recovered slightly to 83.43, but still down from 83.66 in late trading on Monday. The move came ahead of an election to decide the leader of the Democratic Party of Japan, with the winner widely expected to serve as the nation’s prime minister. Analysts said that dollar-yen pair may firm and could strengthen toward 85 should Japan’s political situation stabilize.

EUR – Euro Gains on Risk-Asset Demand

The euro rose the most in 10 weeks against the U.S. dollar after regulators gave European banks more time than analysts expected to meet new capital requirements. The euro also strengthened after the European Commission said the region’s economy may grow almost twice as fast this year as previously forecasted. Against the Japanese yen however, the euro lost ground, hitting 107.42, down from 107.63 Monday.

The euro strengthened 1.6% against the dollar to $1.2878. It climbed earlier as much as 1.7% to $1.2893 in the biggest intraday gain since July 1. The euro rebounded 12% from a four-year low on June 7 through Aug. 6 as investors focused on worse-than-forecasted U.S. economic data as European statistics surpassed predictions. Still, the euro may be unable to sustain its gains against the dollar as renewed concern over the solvency of nations from Portugal to Ireland points to another slump for the common European currency.

JPY – Yen Extends Gains Versus Dollar Before Election

The yen rose to a 15-year high on Tuesday ahead of a decisive vote in Japan, weighing on Japanese equities and leaving traders wondering whether a rally that has lifted global stock markets to their highest levels in a month can be sustained.

The yen rallied versus the dollar on speculation Prime Minister Naoto Kan will beat his rival Ichiro Ozawa in a party vote today; reducing the likelihood the government will intervene to weaken the currency. Japan’s currency also strengthened against all the major currencies as the Japanese stocks dropped, boosting demand for safer assets.

OIL – Oil Rises on Improved Global Economic Outlook

Crude Oil closed above $77 a barrel Monday after upbeat data from China stoked optimism about the global economy, while the closure of a pipeline in the Midwest disrupted supplies to refineries in the region. Oil traders were cheered by increasing industrial production in China, which over the weekend reported manufacturing gains of nearly 14% in August from a year ago, with the data signaling the world’s second-biggest economy is growing.

Crude prices earlier reached an intraday high of $78.07 a barrel, the first time a front-month contract breached the $78 mark since Aug. 11. On Friday, Oil gained $2.20 to end at $76.45 a barrel, closing the week higher by 2.5%. A softer U.S. dollar also supported the dollar-denominated commodity by making it less costly for holders of other currencies.

Technical News

EUR/USD

The pair has been rising constantly since the beginning of the week and is currently trading around the 1.2870 level. As the MACD on the 4-hour chart continues to point up, the pair could rise further, with potential to reach the 1.2950 level.

GBP/USD

The pair failed to breach the 1.5500 level yesterday, and as a result saw a sharp fall which took it as low as the 1.5365 level. The bearish move might continue today, with a key-target level of 1.5300.

USD/JPY

The bearish trend continues with full steam as the USD/JPY has reached a 15-year low on yesterday’s trading. The RSI on the weekly chart remains within the over-sold section, suggesting that the pair might drop even further. Going short might be preferable today.

USD/CHF

Ever since peaking at the 1.275 level, the pair is dropping with no apparent stops. The MACD and the RSI on the 4-hour chart continue to point down, indicating that the bearish move has more room to go. Going short might be a good strategy today.

The Wild Card

Oil

A swift rise in the price of spot crude oil by $5 may have left the commodity oversold. A bearish cross has formed on the daily chart’s Slow Stochastic oscillator, indicating that the price may fall in the near term. Another sign supporting an end to the price rally is the doji candlestick from yesterday’s trading. The price climbed to a high of $77, a previous resistance level from early February. CFD traders may want to liquidate any long positions they may have in spot crude oil. Support is found at $75.60.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By Rita Ruvinski – The day ahead is busy with data releases, and many of them of high importance to markets. Foremost will be U.S. retail sales and the ZEW sentiment, but also of interest will be the British CPI and U.S. Business Inventories.

8:30 GMT: GBP- CPI

Contrary to the U.S. and Europe, Britain saw the annual rate of inflation rise above the 3% target. CPI dropped gradually to 3.1% and is now expected dip to an annual rate of 2.9%. This is expected to weaken the Pound.

9:00 GMT: EUR – German ZEW Economic Sentiment

The important German ZEW Economic Sentiment is the highlight among market events that will shape the EUR/USD trading this week. This survey of 350 analysts and investors always rocks the euro. In the past 4 months, it has shown significant drops, short of expectations, reaching 14 points last month, still in positive territory, meaning small economic optimism. Another drop is expected now which means the pair has the potential of falling below $1.2660.

12:30 GMT: USD – Core Retail Sales/ Retail Sales

The retail trade report for August could be slightly stronger than expected. This major consumer gauge recovered last month after terrible falls beforehand. Retail sales are predicted to rise by 0.4%, exactly like last month, and core retail sales will probably rise by 0.3%, slightly better than last month’s 0.2% rise. Any result will rock the markets.

14:00 GMT: USD – Business Inventories

Data on business inventories for July will add the retail component to those already known for wholesale and factory inventories. A better than expected data will rock the greenback.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By Russell Glaser – News released from Europe today showing increased economic forecasts for European growth will have a positive impact on the Scandinavian economies and in turn help to strengthen the Swedish krona.

Today the European Commission increased its estimate for gross domestic product in the European Union. The commission believes that Europe’s economy will grow by 1.8% as opposed to the commission’s previous estimate of 0.9%. The upgrade comes despite a warning of potential slowing growth in the EU economy during the second half of 2010. The slowdown and any additional weakening in European GDP may be caused by deteriorating fiscal conditions and the ending of government stimulus programs.

The European economy will be powered by export growth in Germany. The German economy may benefit as well from the weakened euro as a weak euro can make German imports more competitive abroad. Countries that use the euro are expected to expand economic activity by 1.7%.

The implications for the Swedish Krona should be a positive. The European Union contains 7 of the 9 largest trade partners for Sweden. Any increase in European growth should directly affect growth in the Swedish economy.

Looking at the technicals for the USD/SEK, the pair continues to trend lower. An intermediate trend line begins at the highs in early June. The trend line has two points of contact in late August. The downward trend is confirmed by the 20-day simple moving average that is sloping sharply lower.

The previous target remains the same at 7.0400 (S1). Resistance comes in at the pullback beginning at 7.1950 (R1), followed by the completion of the bullish correction at 7.3350 (R2).

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

AUDUSD’s upward movement from 0.8771 extended to as high as 0.9361. Support is at 0.9260, as long as this level holds, uptrend is expected to continue, and next target would be at 0.9400 area. On the downside, the pair is now facing 0.9381 (Apr 12 high), minor consolidation would more likely be seen before breaking above this level, a break below 0.9260 support will indicate that minor consolidation of uptrend is underway, then pullback to 0.9200 could be seen.

Daily Forex Forecast

By CountingPips.com

The latest Commitments of Traders (COT) report, released on Friday showed that futures speculators trimmed their euro short positions by close to 2,000 contracts, according to data by the Chicago Mercantile Exchange. Non-commercial futures positions, those taken by hedge funds and large speculators, were net short the euro against the U.S. dollar by -23,699 contracts as of September 7th. This is a decrease of 1,870 short contracts after speculators were net short the euro by -25,569 contracts on August 31st. The September 7th data reverses three straight weeks of increased short positions.

The COT report is published every Friday by the Chicago Mercantile Exchange (CME) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. Open interest is the number of open contracts that have not been closed by a transaction or by delivery.

The euro and the British pound sterling were the only major currencies on the short side against the dollar last week in the CME futures market while the Australian dollar, New Zealand dollar, Japanese yen, Swiss franc, Mexican peso and the Canadian dollar had a net long amount of contracts. Canadian dollar positions increased last week to have a total net long position after decreasing the previous week to level onto the short side.

The British pound sterling short positions rose to -16,068 as of September 7th after being short on August 31st by -15,266 positions. Pound sterling short positions have now increased for two straight weeks.

The Canadian dollar positions rose after declining for three consecutive weeks. Canadian dollar large speculators positions increased to 452 long contracts as of September 7th from a total of -4,764 positions the week prior.

The Japanese yen net long contracts edged higher last week to 52,183 from 49,904 net long contracts reported on August 31st. Yen positions have continued to stay around the +50,000 level for the past six weeks.

Swiss franc long positions increased for a fourth straight week to 16,627 long contracts as of September 7th after rising to 14,281 long contracts the week prior.

The Australian dollar futures positions increased to a net amount of 56,966 long contracts as of September 7th from 43,808 long contracts on August 31st. The gain in Aussie long speculative positions reverses a decline of two consecutive weeks.

New Zealand dollar futures positions also increased with 9,377 long contracts after a total of 6,957 long contracts as of August 31st. Kiwi positions had declined lower for four straight weeks before the September 7th data.

Mexican peso long contracts, meanwhile, dipped for a fourth consecutive week to 14,064 total long positions from 21,004 longs the week prior on August 31st.

COT Data Summary as of September 7th, 2010

Large Speculators Net Positions vs. the US Dollar

Euro: -23,699 short contracts from -25,569 shorts on August 31th
British pound sterling: -16,068 short contracts from -15,266 shorts
Australian dollar: 56,966 long contracts from 43,808 longs
Canadian dollar: 452 long contracts from -4,764 shorts
Japanese yen: 52,183 long contracts from 49,904 longs
Mexican peso: 14,064 long contracts from 21,004 longs
New Zealand dollar: 9,373 long contracts from 6,957 longs
Swiss franc: 16,627 long contracts from 14,281 longs

Other COT Resources:

Forecast The FX Market With The COT Report

The Only Indicator You Will Ever Need

By GCI Forex Research

Fundamental Outlook at 1400 GMT (EDT + 0400)

€

The euro appreciated sharply vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2845 level and was supported around the $1.2700 figure.  The common currency rocketed higher during the Australasian and European sessions on account of two main catalysts. First, it was reported that banks would have as many as eight years to comply with new capital requirement rules that were announced over the weekend in Basel.  The new “Basel III” accord is designed to strengthen banks’ balance sheets and avert another financial meltdown.  The gradual implementation of the accord, however, may leave the global banking system at greater risk.  Second, Chinese economic data released overnight were stronger-than-expected and these data partially altered the view that China’s economic recovery was decelerating.  There were no major economic data released in the U.S. today and August retail sales data will be released tomorrow with many forecasts calling for gains around +0.3%.  U.S. bond giant PIMCO is now forecasting a 10-year U.S. Treasury note yield around 1.75% in Q1 2011, compared with its current level of 2.78%.  In eurozone news, Q2 eurozone labour costs will be released tomorrow along with the September ZEW survey and July industrial production.  German August wholesale prices data will be released tomorrow along with the September ZEW survey and French data released today saw the July current account deficit narrow to -€2.2 billion.  Germany’s Bundesbank reiterated it sees a “significant” capital need for German banks.  ECB President Trichet reported he sees “meager” growth in advanced economies.  The European Union now expects the eurozone economy will have grown about 1.7% in 2010.  ECB member Wellink reported European banks will require hundreds of billions of euro in new capital to comply with the new Basel capital adequacy requirements.  Euro offers are cited around the US$ 1.3240 level.

¥/ CNY

The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥83.85 level and was capped around the ¥84.35 level.  The pair moved to intraday lows during the European session and North American dealers challenged this area despite the yen’s decline elsewhere.  Stronger-than-expected Chinese economic data kept the greenback on the defensive today.  Bank of Japan Governor Shirakawa was appointed chairman of the Bank for International Settlements Asian Consultative Council.  Institutional investors are said to have asked the Japanese government to maintain the size of its Japanese government bond buyback program.  All eyes are on the Democratic Party of Japan leadership election battle tomorrow between Prime Minister Kan and Ichiro Ozawa.  Many dealers believe Kan will win the battle but a victory by either party is not likely to have a material impact on Japanese economic or financial policy.  The government will likely keep pressure on the central bank to ease policy further.  Data to be released in Japan overnight include August Tokyo-area condominium sales, July industrial production, and July capacity utilization.  The Nikkei 225 stock index climbed 0.89% to close at ¥9,321.82.  U.S. dollar bids are cited around the ¥84.60 level.   The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥107.90 level and was supported around the ¥106.95 level.  The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥130.10 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥83.00 figure. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.7618 in the over-the-counter market, down from CNY 6.7696.  Economic data released in China overnight was stronger-than-expected and Prime Premier Wen indicated China’s economy is “in good shape.”  Industrial production was up 13.9% y/y and both retail sales and lending data exceeded forecasts.  Data also revealed inflation printed at 3.5%, 1.25% above the benchmark one-year deposit rate.  Some traders believe People’s Bank of China will be forced to raise rates on account of this imbalance while other economists believe these inflation data will cool.  Today’s intraday high for the yuan represented a record high following the end of the dollar peg in July 2005.  The U.S. House Ways and Means Committee will discuss China’s currency policy on 15-16 September.

£

The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5485 level and was supported around the US$ 1.5350 level.  Data to be released in the U.K. overnight include August RICS house prices, August Nationwide consumer confidence, July DCLG house prices, August consumer price inflation, and August retail prices.  Bank of England Governor King will give a speech this week that will be closely watched given his support for Prime Minister Cameron’s spending cuts.  Cable bids are cited around the US$ 1.5115 level.  The euro appreciated vis-à-vis the British pound as the single currency tested offers around the £0.8335 level and was supported around the £0.8265 level.

CHF

The Swiss franc appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0100 figure and was capped around the CHF 1.0205 level.   Data released in Switzerland today saw August producer and import prices climb 0.1% m/m and 0.5% y/y, exceeding forecasts.  The September Credit Suisse ZEW survey will be released on Wednesday.  Swiss National Bank Chairman Hildebrand spoke today and was supportive of the new Basel III capital revisions.  Hildebrand also reported UBS and Credit Suisse maintain “many capital options.” SNB is expected to keep monetary policy unchanged this week when its interest rate announcement is released.  U.S. dollar offers are cited around the CHF 1.0290 level.  The euro appreciated vis-à-vis the Swiss franc as the single currency tested offers around the CHF 1.3035 level while the British pound moved lower vis-à-vis the Swiss franc and tested bids around the CHF 1.5545 level.

Technical Outlook at 1230 GMT (EDT + 0400)

(Bid Price) (Today’s Intraday Range)

EUR/ USD      1.2830                1.2844, 1.2702
USD/ JPY         83.98                  84.35,   83.83
GBP/ USD      1.5398                1.5487, 1.5351
USD/ CHF      1.0124                1.0206, 1.0114
AUD/USD       0.9333                0.9338, 0.9286
USD/CAD       1.0291                1.0344, 1.0281
NZD/USD       0.7317                0.7340, 0.7282
EUR/ JPY       107.68                107.92, 106.94
EUR/ GBP      0.8325                0.8333, 0.8269
GBP/ JPY       129.30                130.09, 129.21
CHF/ JPY         82.86                  82.97,   82.53

Support                       Resistance                  Support                    Resistance

EUR/ USD                                                           USD/ JPY

L1.       1.2575                         1.2870                            81.80                          87.15

L2.       1.2440                         1.3045                            80.80                          88.25
L3.       1.2220                         1.3290                            77.20                          89.45

GBP/ USD                                                        USD/ CHF

L1.       1.5230                         1.5810                         1.0215                         1.0600

L2.       1.5010                         1.6040                         1.0095                         1.0820

L3.       1.4860                         1.6210                         0.9925                         1.1040

AUD/ USD                                                        USD/ CAD

L1.       0.8645                         0.8965                         1.0450                         1.0860

L2.       0.8510                         0.9065                         1.0240                         1.1060

L3.       0.8345                         0.9220                         1.0005                         1.1490

NZD/ USD                                                        EUR/ JPY

L1.       0.6910                         0.7220                         103.40                         108.90

L2.       0.6590                         0.7445                         101.15                         113.25

L3.       0.6265                         0.7585                           99.90                         118.05

EUR/ GBP                                                       EUR/ CHF

L1.       0.7870                         0.8320                         1.2845                         1.3330

L2.       0.7785                         0.8535                         1.2650                         1.3615

L3.       0.7415                         0.8745                         1.2430                         1.3985

GBP/ JPY                                                         CHF/ JPY

L1.       126.70                         135.35                           78.35                          82.65

L2.       123.30                         138.40                           76.45                          85.80

L3.       118.85                         140.70                           75.05                          87.15

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Good day stock traders! For those who are not aware, the shares of Oracle Corporation soared by about 9.3% last week. As you can see from its daily chart, the bullish gods must be behind the company when its stocks gapped up after dangerously falling below both the 50-day and 200-day moving averages. In the process, the shares of Oracle went back  above the mentioned averages and the resistance just above 24.50. Now, it could use these two averages including the 24.50 marker as supports in case Oracle weakens due to profit taking. Anyhow, Oracle could still rise until it encounters some resistance at its former peaks at 25.50 and at 26.50. A move above these levels could send it on track to another bullish run.

Last week’s jump was due when Mark Hurd, the former president of Hewlett Packard (HP) was hired by Oracle corporation as a co-president, director and board member. Mark Hurd was one of the better CEO’s that brought HP back to its former fame. In fact, he was named as a “TopGun CEO” by Brendan Wood International in 2009. He, however, resigned when he found himself in the middle of a sexual harassment case. Nonetheless, his hiring as the new president of Oracle sent the company’s stocks soaring.

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