Monday August 23, 2010 - 06:02:28 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 23-Aug-2010 - 0556 GMT
The US markets closed mixed on Friday. The weak economic growth outlook is continuing to retain the downside pressure. The Dow (10213.62) was down 0.56% while the Nasdaq (2179.76) closed almost flat.
The Asian markets are trading mixed today. The Nikkei (9141.01) is down 0.42% and Shanghai (2644.83) is up 0.10%. The Indian markets closed lower Friday. The Sensex (18401.82) was down 0.29% and Nifty (5530.65) was down 0.17%.
Crude (74.11) is continuing to trade lower. The global economic growth outlook, weaker equties and strong dollar are retaining the downside pressure on the commodity. While below 75, there are good chances of further dip towards 72.25-00 in the coming days.
Gold (1228.35) is continuing to trade higher. With Support at 1220, the outlook is bullish for a rise towards 1250 in the coming days. However, a fall from current level breaking below 1220 could turn out to be bearish as there could be chances of Head and Shoulder pattern on the weekly chart. To see the Gold graph click on the following link:
Relative quiet beginning to the week within overall positive trends for the Dollar and the Yen. The Euro (1.2715) can dip to 1.2650. Dollar-Yen (85.35) is relatively quiet between 85.25 and 85.75, but seems to be preparing for the next leg down towards 84.15. Euro-Yen (108.55) looks like it can fall towards 107.30.
Dollar-Swiss (1.0335) might trade in a range of 1.0240-0430 for the initial part of the week. The Pound (1.5565) yo-yoed between 1.5460-5695 last week, but seems weak overall. A break below 200-day MA at 1.5478 might be very bearish, targeting 1.52. The Aussie (0.8905) had fallen to a low of 0.8840 after the elections threw up a hung parliament, but has recovered a bit on hope that Julia Gillard 30% mining tax would be scrapped. Important Resistance is seen at 0.8943.
Among the Asians, both the Korean Won (1181.60) and Sing Dollar (1.3555) are trading slightly weaker. Dollar-Rupee has opened near 46.65.
The 3M USD LIBOR was down 1 bps to be set at 0.33%. The 2Y yield was unchaged at 0.48% while the 10Y yield was up 2 bps to quote at 2.60%.
No major data release today
CA Core Inflation Index Y/Y
...Actual 1.6%...Previous 1.7%
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