Monday October 4, 2010 - 03:57:27 GMT
Share This Story
FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 04-Oct-2010 - 0355 GMT
The US Equities were marginally down on profit booking last week. The Dow (10829.68) was down 0.28% and the S&P 500 (1146.24) was down 0.21%. The Dow closed just above the important Resistace (on the monthly charts) at 10770 and while above 10550-600 we may see the markets move up towards 11000 in the coming weeks.
The Asians are trading higher today. The Nikkei (9486.07, up 0.87%) is trading higher on hopes that the BOJ will ease policy to stimulate economic growth. The Shanghai (2655.66) is closed on account of National Day till Thursday, 7-Oct-10. In India, the Sensex (20445.04) and the Nifty (6143.40) closed up about 2% on account of strong capital flows last week. The markets may move up towards 21000 in a couple of weeks.
Crude (81.59) is continuing with its upmove and is now trading strong above 80. The weaker dollar is supporting the price rise. With Resistance-turned-Support at 80, a further rise towards 85-90 is looking likely.
Gold (1316.60) is retaining its upside momentum and is keeping up the overall bullish sentiment intact for a rise towards 1325-50 in the coming days.
Dollar is retaining its weakness. The Euro (1.3767) is retaining its upside momentum and might rise further towards 1.3900-20. Support is seen in 1.3620-00 region. Dollar-Yen (83.68) has risen sharply on intervention speculation as the BOJ's two day meeting starts today. The Euro-Yen Cross (115.20) has risen further and is retaining its current uptrend intact and might further rise towards 116-117.
Dollar-Swiss (0.9777) is retaining its range of 0.9700-850 and may move up towards 0.9825-50 followed by a dip. Aussie (0.9697) may again come down towards 0.9650 today. Cable (1.5797) may see some dip towards 1.5650-00 today.
The Asian currencies are continuing to trade strong. The Korean-Won is trading near 1123 and the Sing dollar is trading near 1.3130. Dollar-Rupee has closed lower at 44.47/48 on Friday and might see further downmove towards 44.25-20 given the overall weakness in the dollar.
The 3M USD LIBOR was unchanged at 0.29%. The 2Y yields were down 1 bps and the 10Y yields were down 2 bps to quote at 0.41% and 2.49% respectively.
The 2-day BOJ policy meet starts today.
No major data release today
...Actual 5.1%...Previous 5.2%
...Actual 10.1%...Previous 10.0%
Aug US Manufacturing ISM
...Actual 54.4...Previous 56.3
US Aug Personal Income
...Actual 0.5%...Previous 0.2%
US Aug PCE Price Index M/M
...Actual 0.4%...Previous 0.4%
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."