Tuesday October 13, 2009 - 03:40:29 GMT
Share This Story
FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 13-Oct-2009 - 0335 GMT
The Dow (9885.80) and the Nasdaq (2139.14) traded cautiously higher and later shed off most of the early gains to end flat yesterday. The markets might be cautious ahead of the earnings season. Earnings numbers and a host of economic data realeases scheduled this week are likely to set the trend for the rest of the month. It faces Resistance near 10100 for the week and may rise during the week after some correction towards 9700.
The Asian indices are trading higher led by rise in commodities and expectations of better corporate earnings ahead. The Nikkei (10055.15) is up 0.39%. Shanghai (2929.38) and Hang Seng (21580.06) are up over a percent each. The Sensex (17026.67) had surged 2.31% yesterday to close above the 17000 mark once again. For this week, it seems to have found Support near 16600 and till this Support holds, expect it to surge higher towards 17400 over the course of the week. Sensex is closed today on account of Maharastra Assembly polls.
The weaker dollar and the increase in fuel demand in US due to cold weather helped Crude (72.93) to break above the Resistance at 72.50 mentioned earlier and is now trading just below 73. If the current strength on the upmove continues, we might see a rise towards 75-76 in the coming days. On the downside Support is seen at 72.50 (Resistance-turned-Support).
Gold (1054.20) has risen and tested the Resistance at 1060 yesterday. As mentioned earlier a strong break above the Resistance at 1060 might see a rise towards 1150-1200 in the coming days/weeks. Immediate Support is seen at 1040.
The Euro (1.4780) has risen from yesterdays' low of 1.4677 and is trading higher now, thereby keeping up the overall bullish sentiment intact. Dollar-Yen (89.82) continues to remain bearish. It has fallen after testing the Resistance at 90.50 as expected yesterday. Euro-Yen (132.74) Cross might test the Resistance at 133.50 today.
The Pound (1.5774) is trading lower and might see further dip over the next few days as it continues to remain bearish. Swiss (1.0266) has fallen sharply and is trading lower now. Aussie (0.9071) is conitnuing to remain strong with good Support at 0.9000.
The Korean-Won (1170) is remaining strong with good Resistance at current levels. Dollar-Rupee has closed yesterday at 46.48/50 and the market is closed today on account of Maharastra Assembly elections.
3M USD LIBOR was unchanged at 0.28% and seems to have found a floor for itself. The US Treasuries have dipped slightly on expectations of slower recovery owing to consensus over not so promising retail sales numbers due on 14th. The Trendline Support on the 30Y bond yield at 4.00% had held and the yields have risen from there. While simltaneously, the danger of double bottom on the 10Y yields is not completely erased. To see the chart of US yields, click on: http://www.kshitij.com/graphgallery/usdsin00.shtml#sin00
08:30 GMT Apr UK CPI Y/Y
...Expected 1.3%...Previous 1.6%
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."