Wednesday July 21, 2010 - 04:10:58 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing - 21-Jul-10
The US Equities reversed early losses after Apple posted strong numbers yesterday followed by hopes that the Fed Chairman Ben Bernanke would ease worries about the US economy in his semi-annual testimony to the Congress this week. The Dow (10229.96) was up 0.74% and the S&P 500 (1083.48) was up 1.14%. The Dow has an some strong Resistance in the region of 10300-500 in the coming days.
The Asian Equities are trading higher following the US markets. The Nikkei (9321.65, up 0.23%) may see some fall towards 9250 in the coming days. The Shanghai (2546.28, up 0.69%) has broken above some important Resistances and may rise towards 2650 in the coming weeks. To see the Shanghai charts, please click on the following links:
In India, the Markets lost early gains led by banking stocks to end in Red yesterday. the Sensex (17878.14) was down 0.28% and the Nifty (5368.00) was down 0.34%. The Sensex is trading in the range of 17800-18000 from the past few sessions and we see it going up towards 18350-500 in the coming days, followed by a dip towards 17000-16800 in the coming weeks.
Crude (77.56) bounced back sharply yesterday breaking above the Resistance at 76.80 mentioned earlier and is now trading higher above 77. The bounce back in the US equity markets and the expectations that the US Crude inventory will show a drop for the fourth consecutive week supported the price rise. While above 77, there are good chances of further rise towards 80.
Gold (191.70) though has bounced back from the Support at 1175, is continuing to trade below 1200 and is retaining the downside pressure. As mentioned earlier, 1175 is a very crucial Support level to watch for which we expect to hold. However, a break below 1175 might see further downmove to 1150 in the coming days.
The Euro (1.2895) has come off sharply from yesterday's high of 1.3028 and is now trading below 1.29. Further dip to 1.2820-00 can be seen today. Resistance is seen at 1.30. Dollar-Yen (87.22) is trading above 87. The Resistance in 87.30-50 region is holding as of now. A strong break above 87.50 might see further rise towards 87.80-88 today. Euro-Yen Cross (112.47) is retaining the range 11.50-113.50.
In Asia, the Korean-Won is trading near 1202 and USD-SGD is trading near 1.3716.Dollar-Rupee has closed higher at 47.34/35 yesterday and is keeping up the overall bullish sentiment intact. 47.45 and 47.70 are the next significant Resistance levels to watch for.
The 3M USD LIBOR was down 1 bps to be set at 0.51%. The 2Y yield was unchanged at 0.58% and the 10Y yield was up 1 bps to quote at 2.96%.
08:30 GMT UK BOE Minutes
...Expected 1-0-7...Previous 1-0-7
US June Housing Starts
...Actual 0.550 Mln...Previous 0.590 Mln
...Actual 0.75%...Previous 0.50%
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