Friday July 16, 2010 - 03:59:36 GMT
Share This Story
FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing - 16-Jul-2010
The US equity markets bounced back in the final trading hours of the day and have closed slightly lower yesterday. The Dow (10359.31) was down 0.07% and Nasdaq (2249.08) was down 0.03%.
The Asian markets are in the red. Nikkei (9530.49) is down 1.60% and Shanghai (2398.71) is down 1.06%. In India the Sensex and the Nifty has closed slightly lower yesterday at 17909.46 (down 28.70 points) and 5378.75 (down 7.40 points). It might see further dip today following the other Asian markets.
Crude (76.95) has come off from yesterday's high of 77.66 following the weak US economic data release and slow down in China's economic growth. A strong break above 78 will have to be seen for the Commodity to see 80 on the upside once again, failure of which might see a break below 75 and pull it down towards 72.
Gold (1209.70) is continuing to trade sideways and is trading silent in between 1200-20 over the last few days. The sideways move is expected to continue and a breakout on either side of the range (1185-1220) would determine the further direction of move. The broader picture remain bullish.
Spain's successfull 3 billion euro bond sale has strengthened the Euro further. The Euro (1.2913) has risen sharply above 1.29. However, the 21-Week-MA (1.2953) Resistance is holding as of now and a break below 1.29 might see 1.2800-2780 today. Dollar-Yen (87.21) fell breaking below 88 as expected. Very important Support is seen at 87, a strong break below which might trigger further downmove. Euro-Yen Cross (112.67) has been ranged between 112-113.50 over the last couple of days within the overall downtrend.
The Pound (1.5426) is retaing its strength and looks bullish for further rise towards 1.5550-5600. Dollar-Swiss (1.0425) is continuing to trade weak. The immediate Support at 1.0400 is holding as of now and if it continues to hold we might see a bounce back towards 1.0500. On the downside Support is seen at 1.0350. Aussie (0.8784) has come off from yesterday's high of 0.8849 and might dip to 0.8700 today.
In Asia, the Korean-Won is trading near 1200 and USD-SGD is trading near 1.3751. Dollar-Rupee has closed lower yesterday at 46.59/60. Chances of testing the Support at 46.40 today given the overall weakness in the dollar.
The 3M USD LIBOR was down 1 bps to be set at 0.52%. The 2Y yield was flat at 0.60% while the 10Y yiled was down 5 bps to quote at 2.99%.
09:00 GMT EU Trade Bal
...Expected 1.4 Bln...Previous 1.6 Bln
12:30 GMT US June Core CPI (MoM)
...Expected 0.1%...Previous 0.1%
13:00 GMT US June TICS (Net foreign purch of long-term Sec)
...Expected $ 73.7 Bln...Previous $ 83.0 Bln
...Actual 0.10%...Previous 0.10%
US June Industrial Production
...Actual 0.1%...Previous 1.3%
US June Capacity Utilization
...Actual 74.1%...Previous 74.1%
June US Philifed Index
...Actual 5.1...Previous 8.0
US June Core PPI (MoM)
...Actual 0.1%...Previous 0.2%
US June Core PPI (YoY)
...Actual 1.1%...Previous 1.3%
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."