Friday June 25, 2010 - 03:35:02 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 25-Jun-2010 - 0333 GMT
The worries on a double dip recession and the concerns on Euro zone's debt crisis witnessed a sharp fall in US equities in the final trading hours yesterday. The Dow (10152.80) was down 1.14% and the Nasdaq (2217.42) was down 1.63%.
Asian markets are in the red following the sharp fall in the US markets overnite. The Nikkei (9784.76) is down 1.45%, Shanghai (2562.40) is down 0.17%. The Sensex and Nifty have closed lower yesterday at 17730.24 (down 25.70 points) and 5320.60 (down 5320.60) respectively and might see further dip today following the other markets.
Crude (76.66) has bounced from yesterday's low 75.32 and is trading higher above 76. The news on the possibility of a storm developing in the Caribbean supported the price rise. While above 76 there are chances of a rise once again towards 78 in the coming days.
Gold (1245.50) is continuing to trade between 1200-50. The broader picture is bullish and every dip seen can be taken as a good opportunity to buy.
Yen has strengthed following the speculation that the G-20 meet this weekend will fail to sort out ways to handle the Euro zone's debt crisis. Dollar-Yen (89.60) is continuing to trade lower and might test the crucial Support at 88.90-70. Euro-Yen Cross (110.43), with Resistance at 111.00-50 region looks capable for further fall towards 108. The Euro (1.2326), though continuing to trade above 1.22 over the last couple of days, is not showing much strength on its upmove above 1.23 and is retaining the overall downside pressure.
The Pound (1.4940) is continuing to trade strong and might see further rise towards 1.5000-50 today. Note the 21-Week-MA is at 1.5040. Dollar-Swiss (1.1018) is continuing to trade weak and might test the crucial Support at 1.0950-30 region. Aussie (0.8648) is retaining its downside pressure and might dip further 0.8600-0.8550.
In Asia, the Korean-Won is trading weak. USD-KRW (1201.20) has risen sharply and is now trading just above 1200. USD-SGD is trading near 1.3912. Dollar-Rupee has closed at 46.48/49 yesterday and might see further rise towards 46.70-80 today.
The 3M USD LIBOR was unchanged at 0.54%. The 2Y yields was unchanged at 0.68% while the 10Y yield was up 1 bps to quote at 3.13%.
12:30 GMT US GDP Q1 '10 (Fnl)
...Expected 3.0%...Previous 3.0%
May US Durable Goods Orders
...Actual -1.1%...Previous 3.0%
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