Tuesday September 28, 2010 - 03:26:16 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 28-Sep-2010 - 0324 GMT
The US equities fell yesterday following concerns over the overall financial sector and the European debt crises may be far from over. The Dow (10812.04) was down 0.44% and the S&P 500 (1142.16) was down 0.57% yesterday. The Dow may move up towards 11000-100 this week.
Asians are mostly trading lower over renewed concerns over the European debt crises and fresh measures from China to rein in property prices today. The Nikkei (9527.65, down 0.79%) is near an important Resistance at current levels and strong break may take it up towards 9850. The Shanghai (2619.35, up 0.33%) is trading weak and may not see any significant upmove in the next few days. In India, the Sensex (20117.38, up 0.36%) and the Nifty (6035.65, up 0.29%) went up yesterday. The Sensex may rise towards 21000 in a couple of weeks.
Crude (76.24) is continuing to trade higher. The weaker dollar is keeping the price higher. As mentioned earlier, while above 76 there are good chances of further rise towards 78-79 in the coming days.
Gold (1293.00) is continuing to trade higher and is retaining its strength. The broader bullish sentiment remains intact and a strong break above the psychological Resistance at 1300 might take it further up towards 1320-50 in the coming days/weeks. Support is seen in 1280-75 region.
A silent start for the week and the Dollar is trading weak. The Euro (1.3466) is ranged between 1.3400-3500 within tis overall uptrend and might see 1.3600 on the upside on a break above the Resistance at 1.3510. Dollar-Yen (84.24) is retaining its downside pressure and break below 84.00 might trigger some fresh downmove. Euro-Yen (113.44) is continuing to trade above 113 and might rise to 115 while above the Support at 112.50.
Dollar-Swiss (0.9846) is retaining its downside pressure and might see some fresh downmove in the coming days. The Pound (1.5829) is retaining its strength and has good chance of a rise towards 1.6000. Aussie (0.9603) has very important Resistance at 0.9633 and a strong above it might take it further up towards 0.9750-9800.
The Asian currencies are retaining their strength. The Korean-Won is trading near 1149 and USD-SGD is trading near 1.3218. Dollar-Rupee has closed lower yesterday at 45.01/02 and might dip further towards 44.85-75.
The 3M USD LIBOR was unchanged at 0.29%. The 2Y yields were up 2 bps to quote at 0.44% and the 10Y yields were down 7 bps to quote at quoted at 2.53%.
13:00 GMT US Case Schiller
...Expected 3.1%...Previous 4.2%
14:00 GMT US Cons Conf
...Expected 52.5...Previous 53.5
No major data release yesterday
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