Tuesday July 20, 2010 - 03:48:24 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing 20-Jul-2010
The US Equities were up on account of earning optimism of IT companies yesterday with Microsoft Corp up 1.4% ahead of its Q2 results on July 22nd. The Dow (10154.43) was up 0.56% and the S&P 500 (1071.25) was up 0.60%. The Dow has an some strong Resistance in the region of 10300-500 in the coming days.
The Asian Equities are trading higher today except Japan. The Nikkei (9295.14) is down 1.2%,led by dissappointing earnings of IBM and Texas Instruments post US market hours and stronger Yen while the Shanghai (2516.95) is up 0.67%. In India, the Sensex (17928.42) and the Nifty (5386.45) were down about 0.15% yesterday. We continue to hold our view of a Resistance in the Sensex near 18350-500 region in the next few days.
Crude (76.42) has bounced back once again above 76 following the rise in the equity markets. Resistance is seen in 76.80 a break above which might increase the chances of further rise to 78-80 in the coming days. If this Resistance at 76.80 holds we might see downmove to 74.30-00 in the coming days.
Gold (1181.50) continued its downmove and tested the Support at 1175 yesterday. As mentioned earlier 1175-70 is a very significant Support region seen which we expect to hold. However, a break below 1170 might see 1150 on the downside.
The Euro (1.2964) is ranged between 1.2900-3000. A strong break above 1.3000 might see further rise towards 1.3100-20. The 100-DMA Support is at 1.2900. Dollar-Yen (87.08) has bounced back above 87, but has good Resistance in 87.30-50 region which might retain the overall downside pressure. The Euro-Yen Cross (112.91) is ranged between 111.50-113.50 within the overall downtrend.
Dollar-Swiss is facing difficulty in rising beyond 1.0550 and may see a fall towards 1.0500-480 followed by a rally towards 1.0600-50 over today and tomorrow. Cable has come down to trade below the Resistance of 1.5300 and may fall towards 1.5200-175, while Aussie may trade in the range of 0.8800-700 today.
In Asia, the Korean-Won is trading near 1212 and USD-SGD has come off from yesterday's high of 1.3830 and is now trading near 1.3723. Dollar-Rupee has closed higher yesterday at 47.11/12 and is keeping up the overall bullish sentiment intact.
The 3M USD LIBOR was unchanged at 0.52%. The 2Y yield was unchanged at 0.58% and the 10Y yield was up 3 bps to quote at 2.95%.
12:30 GMT US June Housing Starts
...Expected 0.580 Mln...Previous 0.590 Mln
13:00 GMT BoC Meeting
...Expected 0.75%...Previous 0.50%
No major data releases yesterday
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