Tuesday February 16, 2010 - 03:35:51 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 16-Feb-2010 - 0333 GMT
The US equities were closed yesterday. The fall in equities since the beginning of this year has been pronounced largely by concerns over Greece's deficit and indebtedness. There's immediate Resistance near 10200-10300 on the Dow (10099.14) which if held could could lead to a fall towards 9800 over the next few days.
Most of the Asian markets were closed yesterday. The Shanghai, Hang Seng, Taiwan, Straits and KLSE were closed yesterday and today as well. The Nikkei (10060.34) is trading half a percent higher today. The chart of Nikkei does not look very encouraging. A break below the important Support at 9800 would be very bearish. The Sensex (16038.35) closed over half a percent lower yesterday and faces Resistance near 16250-16300.
Crude (74.19) is trading above 74. As mentioned earlier, 75.50 is a significant Resistnace seen which if holds might pull the Commodity down once again towards 72-71. To see the Resistance on the Crude graph click on the following link:
Gold (1106.30) has broken and closed above 1100 yesterday. If it continues to trade above 1100 we might see a rise towards 1120-40 in the coming days.
Muted trading action was seen all over, as the US and some of the Asian markets were closed yesterday. The Euro (1.3618) is expected to remain weak with good Resistance at 1.37. Dollar-Yen (89.97) is finding it hard to see a strong break above 90. We see strong Resistance in the broad 90-91 region for the pair which might retain the downside pressure. Euro-Yen Cross (122.54) is ranged between 122-123.
The Pound (1.5681) is retaining the range 1.55-58, the range in which it has been trading over the last several days. Aussie (0.8930) is oscillating around the immediate Resistance at 0.8930. It is expected to remain pressured on the downside as cluster of Resistances are seen in the range 0.8930-0.9000. Swiss (1.0760) is continuing to trade below 1.08. The Support in 1.07-1.0680 region might be tested today.
The Korean-Won is trading near 1145 and the Dollar-Rupee has closed at 46.32/33 yesterday.
3M USD LIBOR was unchanged at 0.25%. There hasn't been much action on the US interest rates side as the US was on a holiday yesterday. Charts suggest that the yields are now looking to move up. The 2Y and 10Y benchmarl yields were quoting at 0.83% and 3.69% respectively. To see the chart of US Treasury yields, click on the following link: http://www.kshitij.com/graphgallery/usdsin00.shtml#sin00
In Greece, the yields on bonds rose after Greek Fin Min said that his country was in a 'terrible mess' and compared fixing the nation's debt to changing 'the course of Titanic'.
09:30 GMT Jan UK CPI Y/Y
...Expected 3.6%...Previous 2.9%
14:00 GMT US Jan TICS (Net foreign purch of long-term Sec)
...Expected $ 50.3 Bln...Previous $ 126.8 Bln
JP GDP Q4'09 (Adv)
...Actual 1.1%...Previous 0.0%
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