Thursday September 30, 2010 - 03:39:42 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 30-Sep-2010 - 0336 GMT
The US Equities were down yesterday. The investors were worried as fresh protests threatened to derail the austerity measures and worsen the economic crises in Europe. The Dow (10835.28) was down 0.21% and the S&P 500 (1144.73) was down 0.26%. Today is the last trading day of the month and we need to see if the markets close above or below the important region of 10770 today.
The Asians are mixed today. The Nikkei (9494.67, down 0.68%) is trading lower following a 0.3% decline in industrial output for the month of August, coupled with stronger Yen. The Shanghai (2638.98) is up 1.08% on hopes that the current property tightening may end soon. The Nikkei may fall towards 9300 while the Shnaghai may continue to be ranged in the coming days. In India, the The Sensex (19956.34) and the Nifty (5991.30) closed down about 0.70% yesterday. The markets may move in the region of 19900-20200 before we see any significant move on the upside.
Crude (77.76) has risen sharply yesterday following the EIA's data release that showed a drop in US Crude inventories. Important Resistance is seen in 79-80 region which is expected to be tested in the coming days. Support is seen in 75-74 region.
Gold (1306.60) is retaining its strength and is continuing to trade above 1300. The overall bullish sentiment is intact for a rise towards 1320-50 in the coming days.
Dollar is continuing to trade weak. Euro (1.3606) is continuing to trade higher and while above 1.3500 we might see further rise towards 1.3800. Dollar-Yen (83.57) is retaining its downtrend and see a dip towards 83 once again. Whether the BOJ will intervene once again at these levels remains a big question. The Euro-Yen (113.74) Cross is retaining its strength and is inching up slowly. A strong break above 114 might see 115-116 on the upside.
Dollar-Swiss (0.9774) has been ranged from the past few sessions and we may see it move sideways followed bya some upmove towards 0.9800-50 in the coming sessions today. Aussie (0.9676) may see some fall towards 0.9550 today. Cable (1.5838) may see some sideways movement followed by a dip in the coming sessions today.
The Asian currencies are continuing to trade strong. The Korean-Won is trading near 1140 and the USD-SGD is trading near 1.3161. Dollar-Rupee is retaining its current downtrend and has closed lower yesterday at 44.93/94. The market is closed today on account of Half Yearly Bank Closing.
The 3M USD LIBOR was unchanged at 0.29%. The 2Y yields were unchanged at 0.43% while the 10Y yields were up 1 bps to quote at 2.48%.
12:30 GMT US GDP Q2 '10 (Fnl)
...Expected 1.6%...Previous 1.6%
12:30 GMT CA GDP
...Expected -0.1%...Previous 0.2%
JP Tankan Large Manufacturers Index
...Actual 8...Previous 1
EU Biz Climate
Actual 103.2 ...Previous 102.3
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