Wednesday July 7, 2010 - 03:53:50 GMT
Share This Story
FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 07-Jul-2010 - 0351 GMT
The US Markets ended higher yesterday. The Dow (9743.62) closed up 0.59% and the S&P 500 (1028.06) closed up 0.54%. The Dow may come down to the Support region of 9550-500 in the coming days.
The Asian Equities are down today. The Nikkei (9255.94, down 0.88%) still looks week and may fall further towards 9000 in the coming days and the Shanghai (2398.95, down 0.43%) may fall towards 2300-275 in the coming weeks. In India, the Sensex (17614.48) and the Nifty (5289.05) were up about 1% yesterday. The Sensex is at an important Resistance and may fall towards 17500-450 in the next couple of days. Overall, the Sensex has been moving in the region of 17750-450 for the past few days and we need to wait and watch on which side of the range does it break in the coming weeks.
Crude (72.29) has come off sharply from yesterday's high of 73.86 giving up the gains witnessed in the US session initially following the rise in the equity markets. Failure to sustain on the upside is retaining the downside pressure and is keeping up the chances of a fall to 70.
Gold (1194.80) fell below 1200 as expected and recorded a low of 1189.50. Investors' interest to move into other riskier assets has triggered the sell off in Gold. While below 1200 we might expect further downmove towards 1275-70 in the coming days. To see the Graph click on the following link:
The bad US economic data release (Service sector growth) yesterday triggered a sharp rise in the Euro to 1.2662 yesterday. Might see further rise towards 1.2700-30 if it continues to trade above 1.26. Support is seen at 1.25. Dollar-Yen (87.49) is continuing to be ranged between 87-88 within the overall downtrend. Euro-Yen Cross failed to see a strong break above the 21-DMA (currently at 110.68) and is keeping up the overall bearish sentiment intact. The 8-Week-MA (currently at 111.10) is the next significant Resistance level to watch for above the 21-DMA Resistance.
Aussie has taken Support from the 200 MA on the 4-hourly charts and may move up towards 0.8550 in the coming sessions today. Dollar-Swiss continues to be ranged and may trade in the region of 1.0600-700 today. Cable dipped yestarday but may rise towards 1.5200-50 in the coming sessions today.
In Asia, the Korean-Won is trading near 1222 and USD-SGD is trading near 1.3896. Dollar-Rupee has closed higher yesterday at 46.89/90 and might see a rise to 47.00-20 in the coming days.
The 3M USD LIBOR was unchanged at 0.53%. The 2Y and 10Y yields were up 1 bp each to quote at 0.61% and 2.94% respectively.
The RBA kept its rates unchanged at 4.50% in its meeting yesterday.
June Australia Trade Balance
...Actual A$ 1.65 Bln...Previous A$ 1.12 Bln
00:01 GMT UK Cons Conf
...Expected 64...Previous 65
09:00 GMT EU GDP Q1 '10 2nd Quarter
...Expected 0.2%...Previous 0.2%
AUD RBA Interest Rate
...Actual 4.50%...Previous 4.50%
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."