Thursday February 18, 2010 - 03:43:40 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 18-Feb-2010 - 0340 GMT
The US equities have traded higher yesterday on upbeat corporate earnings and better numbers from the real estate side which is now stabilising. The Dow (10309.24) rose 0.39% and the Nasdaq (2226.29) rose 0.55%. There's Resistance on Dow between 10300-10350.
The Asian indices are trading mixed today. The Nikkei (10321.92) is up 0.15% whereas the Hang Seng (20515.78) is down 0.09%. The Chinese and Taiwanes markets are closed today as well on account of the new year. The Sensex (16428.91) rose 1.25% yesterday and could range sideways ahead of the annual budget next week.
Crude (76.98) has fallen slightly and is now trading just below 77. The stronger dollar restricted the Commodity to continue with Tuesday's strong upside momentum thereby honouring the Resistance at 77.50 mentioned earlier. A break above 77.50 might increase the chances of a rise once again towards 80. Support is seen at 75.50. The US Crude inventory data is due today. To see the Crude graph click on the following link:
Gold (1102.10) has fallen sharply and is now trading near 1100. The stronger dollar is retaining the downside pressure. Support is seen at 1100-1090 region a break below which might revisit 1080-60 levels once again. On the upside Resistance is seen in 1120-40 region.
The strong economic data release reversed Tuesday's sharp rise and witnessed Dollar strengthening against most of the currencies. The Euro (1.3572) has fallen sharply and is looking weak which might see further dip towards 1.3430-00 in the coming sessions/days. Dollar-Yen (90.98) has broken above the 55-DMA Resistance (90.65) mentioned earlier and has a good chance of revisiting the 200-DMA (92.27) if it continues to trade higher. Euro-Yen Cross (123.54) has fallen following the fall in Euro and is continuing to remain bearish in the broader picture.
The Pound (1.5662) is retaining the range 1.55-58. Aussie (0.8966) has come off after testing the significant 21-Week-MA (0.9030) Support-turned-Resistance. Swiss (1.0794) has risen sharply and is now trading near the significant Resistance in 1.0800-20 region a break above which might see 1.0880-1.09 today.
Dollar-Ruppee has closed yesterday at 46.10/11 and has opened higher today at 46.22/23.
3M USD LIBOR was unchanged at 0.25%. The yields on US Treasuries rose yesterday. The 2Y and 10Y yields rose 3 and 7 bps to quote at 0.83% and 3.72% respectively.
The BoJ has kept the interest rates unchanged at 0.1% today. Japanese bond yields are near the lowest level in 3 weeks on growing concerns over fighting deflation. To see the chart of Japanese bond yields, click on: http://www.kshitij.com/graphgallery/jpysin00.shtml#sin00
...Actual 0.10%...Previous 0.10%
15:00 GMT Jan US Philifed Index
...Expected 17.2...Previous 15.2
13:30 GMT US Jan Core PPI (MoM)
...Expected 0.2%...Previous 0.0%
13:30 GMT US Jan Core PPI (YoY)
12:00 GMT CA Core Inflation Index Y/Y
UK BOE Minutes
...Actual 0-0-9 hold...Previous 0-0-9 hold
...Actual 7.8%...Previous 7.8%
EU Trade Bal
...Actual 7.0 Bln...Previous 5.3 Bln
US Jan Housing Starts
...Actual 0.59 Mln...Previous 0.58 Mln
US Jan Industrial Production
...Actual 0.9%...Previous 0.7%
US Jan Capacity Utilization
...Actual 72.6%...Previous 71.9%
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