Monday February 15, 2010 - 03:41:01 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 15-Feb-2010 - 0338 GMT
China's move to increase the bank reserve requirements is keeping the equity markets all over pressured on the downside. Most of the markets are closed today.
The Dow (10099.14) closed 0.4% lower and Nasdaq (2183.53) closed 0.28% higher on Friday. The US markets are closed today on account of President's Day holiday.
In Asia, Nikkei (10051.46) is down by 0.40% with the better than expected GDP data release unable to overcome China's measures. Japan's GDP grew 1.1% against the expected 0.9%. The Shanghai is closed today for Lunar New Year. The Indian markets are also expected to trade lower following the Global market.
Crude (74.12) fell sharply on Friday following the EIA's data release that showed an increase in Crude inventories by 2.4 million barrels against the expected 1.5 million barrels. China's move to increase the bank reserve requirements also added to the downside pressure. As mentioned earlier Resistance is seen in 75.50-70 region, which if continues to hold might pull the Commodity down once again towards 72-71.
Gold (1094.50) is continuing to trade in the Resistance region 1080-1100. While below 1100 the donwside pressure is expected to continue. A strong break above 1100 might see 1120-40 on the upside.
Not much action on the currency side today. Most of the currencies are ranged. The Euro (1.3617) fell below 1.36 last week and is trading just above this level. Further fall may be seen this week on a break below 1.35. Dollar-Yen (90.16) has traded sideways last week and may see some fresh fall this week.
The Cable, too, has traded sideways last week and has been able to hold on to the Support at 1.55. Till this Support holds, the pair may see some more upside this week. Dollar-Swiss (1.0774) has Resistance at 1.0830 and may come down a bit over the course of the week. Aussie (0.8879) has immediate strong Resistance at 0.89 which could keep the pair sideways ranged for today.
Dollar-Rupee has opened at 46.40/42 today.
3M USD LIBOR was unchanged at 0.25%. The 2Y and 10Y benchmark yields has fallen 3 bps and 2 bps are quoted at 0.83% and 3.69% respectively.
23:50 GMT JP GDP Q4'09 (Adv)
...Actual 1.1%...Previous 0.0%
EU GDP Q4 '09 (Adv)
...Actual 0.1%...Previous 0.4%
EU Dec IND Prodn (MoM)
...Actual -1.7%...Previous 1.0%
US Jan Retail Sales
...Actual 0.5%...Previous -0.1%
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