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eToro Weekly Market Review, Oct 10, 2010

eToro Weekly Market Review, Oct 10, 2010

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Published by chlsc
eToro Weekly Market Review, Oct 10, 2010
eToro Weekly Market Review, Oct 10, 2010

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Published by: chlsc on Oct 11, 2010
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Weekly Market Review

October 10, 2010

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The equity markets had one large surge mid-week, and consolidated during the balance of the week, as market participants waited for the US unemployment report. The number was worse than expected as government jobs declined by more than double expectations to show a loss for the month of September of 95 thousand jobs. The private employment figure increased by 64 thousand jobs which was in line with expectations, which allowed market participants some form of sigh of relief. For the week the S&P 500 Index increased by 19 to close at 1165.

EXCHANGE RATES
Instrument EUR/USD GBP/USD EUR/GBP USD/CHF USD/JPY USD/CAD EUR/JPY Oil Gold Silver Trend Support II 1.2550 1.5318 0.8110 0.9509 80.21 .9953 107.70 72.20 1160 17.36 Support I 1.2950 1.5450 0.8150 0.9600 81.53 1.0020 109.85 78.10 1280 19.88 Spot 1.3907 1.5957 0.8715 0.9617 82.08 1.0124 114.16 82.67 1349 23.13 Resistance I 1.4155 1.611 0.9146 1.0640 87.20 1.0680 1.1569 83.30 1366 23.53 Resistance II 1.4605 1.6310 0.9402 1.0990 93.10 1.0740 1.1845 87.06 1399 24.83

THIS WEEK’S EVENTS
    Japanese Consumer Confidence is expected to remain stable UK CPI will be watched closely by the BOE UK Claimant Count will give a gauge of the UK employment situation US Retail Sales will reflect the state of the consumer in the US

For more market analysis and news visit www.eToro.net Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.

Weekly Market Review
October 10, 2010

THIS WEEK’S VIEW & TRADING IDEAS
EUR/USD The Euro broke 1.39 continuing the run that began in early September. The move in the EUR/USD is more a function of the dollar weakness then euro strength. The spread between German 2 year yields and US 2 year yields have widened out to 47 basis points which makes holding dollars expensive. Despite effort from the BOJ in the form of intervention and easing of interest rate policy, the Yen continued to strengthen this week. The USD/JPY broke through the 83-82 level, and continues to test the resolve of the BOJ. Japan will need to find a solution to the strengthening Yen beyond unilateral intervention. The issue is that every government seems to want a weaker currency. A better than expected employment report in Australia, pushed the AUD/USD currency pair to an all time intra-day high. The currency pair is close to par, and with the likelihood of the RBA raising rates to 4.75 percent in November, the 1-1 relationship will likely move in favor of the AUD. Gold Prices moved to an all time intra-day high of 1366, and closed at 1347 higher on the week. Gold prices continue to show strength and rebounded after the disappointing US employment report, as a QE 2 by the FOMC is likely pushing gold prices even higher.

USD/JPY

AUD/USD

Gold

FINANCIAL CALENDAR
Currency GBP AUD JPY GBP GBP USD CHF GBP EMU USD AUD EUR USD USD Time (GMT) M 23:01 T 0:30 T 5:00 T 8:30 T 8:30 T 18:00 W 7:15 W 8:30 W 9:00 W 12:30 T 1:30 T 8:00 T 12:30 T 12:30 Release BRC Retail Sales Monitor NAB Australia business confidence Consumer Confidence UK consumer prices UK Trade Balance FOMC Minutes Swiss Producer Prices UK Claimant Count EMU Industrial Production US Import Prices Australia Consumer Inflation Expectations ECB monthly report US Jobless Claims US Producer Prices Oct Sept 0.1% 445K 0.1% Sept Sept Aug Sept Oct 0.5% 0.5% 2.3K 0% 4.1% 3.1% Month Sept Sept Sept Sept Aug -4.7b 5 42 Consensus Prior 1% 5 43.5 .5% -4.8b

For more market analysis and news visit www.eToro.net Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.

Weekly Market Review
October 10, 2010

Currency JPY EUR EUR USD USD USD

Time (GMT) F 4:30 F 9:00 F 9:00 F 12:30 F 12:30 F 13:55

Release Japan Industrial Production EMU CPI EMU Trade Balance US CPI US Retail sales US consumer confidence

Month Aug Sept Aug Sept Sept Oct

Consensus

Prior 0.2% 0.2% 6.7B 0 0.3% 68.2

For more market analysis and news visit www.eToro.net Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.

Weekly Market Review
October 10, 2010

TECHNICAL OPPORTUNITIES OF THE WEEK
EUR/USD

General Overview The Euro pushed higher moving above 1.39 as a decline in US yields and a potential QE2 pushed the dollar lower The Euro is likely to continue to grind higher, as its seems the US central bank in interested in a weak dollar.

For more market analysis and news visit www.eToro.net Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.

Weekly Market Review
October 10, 2010

AUD/USD

General Overview The Australian dollar moved higher, on the back of a better than expected Australian employment report. Given the RBA kept rates unchanged, the market will likely price in that the RBA is behind the curve.

Weekly Market Review

For more market analysis and news visit www.eToro.net October 10, 2010 Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.

GOLD

General Overview Gold prices surged to a new all time high touching 1366, before settling at 1348. Gold prices are being pushed along by a weaker dollar. Friday’s US employment number helped continue the trend, as traders believe that the FOMC will be forced into a second QE.

For more market analysis and news visit www.eToro.net Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.

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