Thursday November 12, 2009 - 03:43:58 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 12-Nov-2009 - 0340 GMT
The Dow (10291.26) and the Nasdaq (2166.90) rose 0.43% and 0.74% respectively yesterday buoyed by 16.1% jump in Chinese industrial production numbers. After the close yesterday, HP announced acquiring 3Com Corp which is a networking software and equipment maker for $2.7 bn.
The Asian indices are trading higher. The Nikkei (9915.25) and the Shanghai (3189.49) are up half a percent each. The Sensex (16849.60) rallied sharply yesterday and has already risen 4.3% this week, 6% over last two weeks and is at a striking distance to 17300 Resistance. Beyond this a rise towards 18000 looks possible by next couple of weeks.
Crude (79.39) closed slightly higher yesterday and is continuing to trade within the range 77-81 menetioned earlier. A breakout on either side of this range would determine the direction of move. The US Crude inventory data is due today.
Gold (1120.10) has broken above the Resistance at 1110 mentioned earlier and we might see a rise towards 1150-1200 over the next few days/weeks. On the downside Support is seen in the region 1110-1090.
The Euro (1.5006) is continuing to remain strong though it failed once again to see a break above the previous high of 1.5062 (26-Oct) with Support in the region 1.4950-10. Aussie (0.9353) has risen sharply after the release of the employment data which showed an addition of 24,500 jobs though the unemployment rate increased 0.1% to 5.8%. Dollar-Yen (89.82) is continuing to trade below 90.
The Pound (1.6602) has fallen sharply and is now trading near the crucial Support at 1.6600, a break below which might see further dip towards 1.6500 today. Euro-Yen (134.81) Cross might test Resistance at 136.00 today with Support in the region 134.20-00. Dollar-Swiss (1.0065) continue remain bearish as it failed to break above the Resistance at 1.0100 once again yesterday.
The Korean-Won continues to trade strong near 1152. Dollar-Ruppee has opened at 46.37/39 today.
3M USD LIBOR was unchanged at 0.27%. The yields on US Treasuries dipped between 2-3 bps for maturities over 2Y. The 2Y and 10Y benchmark yields were quoting at 0.81% and 3.45%. Sideways consolidation in US yields is what we are looking for before they surge once again.
Australia Labour Force
...Actual 24.5K...Previous 39.8K
10:00 GMT EU Oct IND Prodn (MoM)
...Expected 0.6%...Previous 0.9%
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