Thursday October 7, 2010 - 03:49:58 GMT
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FX Thoughts for the Day - www.fxthoughts.com
Morning Briefing : 07-Oct-2010 - 0339 GMT
The US Equities were mixed in a relatively calm session yesterday. The markets were cautious after disappointing report on the jobs market and renewed concern about the economy. The markets will be closely watching the crucial NFP data due tomorrow. The Dow (10967.65) was up 0.21% and the S&P 500 (1159.97) was flat. We continue to hold our view of an immediate Resistance in the 11000-500 region, a break above which may take the Dow towards 11250 in the coming weeks.
The Asian are mixed today. The Nikkei (9702.76, up 0.12%) is trading silent following a relatively quiet session on the Wall Street and stronger Yen. In Australia, the All Oridnaries (4744.90, up 0.15%) is trading higher following favourable job report in Australia. The Shanghai (2655.66) is closed till today and will open tomorrw after a week long holiday on account of National Day. In India, the Sensex (20543.08, up 0.66%) and the Nifty (6186.45, up 0.66%) closed higher yesterday. The markets may see some strong upmove towards 21500-22000 in the coming weeks.
Crude (83.30) is continuing to trade higher and has risen above 83. The weaker dollar, strike in France's oil port and unexpected drop in the US gasoline and distillate inventories supported the price rise. As mentioned earlier, the weekly candles are looking strong and there are good chances of Crude revisiting 100 in the coming weeks/months.
Gold (1345.30) is retaining its upside momentum and is keeping up its overall bullish sentiment intact. It might target 1370-1400 in the coming days.
Dollar is retaining its weakness. The Euro (1.3914) has risen further and is trading in its Resistance region 1.3875-3915. With lack of downside momentum a further rise towards 1.4000 is looking likely today. Dollar-Yen (82.92) is retaining its downtrend and is now trading below 83. A further dip towards 81.50-00 might be seen in the coming days. The Euro-Yen (82.91) Cross is continuing to trade higher but with less upside momentum. It has significant Resistance at 115.78 a strong break above which might take it further up towards 118-120.
Dollar-Swiss (0.9620) touched a low of 0.9599. The pair may be raged in the region of 0.9600-50 followed by another dip towards 0.9550-00. Aussie (0.9838) is trading above the Resistance at 0.9750 and may see some Resistance at 0.9850-75 region today. Cable (1.5863) has been facing Resistance near 1.5950-75 reigon which may not be broken today.
The Asian currencies are retaining their strength. The Korean-Won is trading near 1117 and the USD-SGD is trading near 1.3079. Dollar-Rupee has closed at 44.49/50. The Support at 44.20 is holding.
The 3M USD LIBOR was unchanged at 0.29%. The 2Y yields and 10Y yields were down 3 bps and 7 bps to quote at 0.38% and 2.40% respectively.
01:30 GMT Sep Australia Labour Force
...Expected 20.3K...Previous 30.9K
11:00 GMT BOE Mtg
...Expected 0.50%...Previous 0.50%
11:45 GMT E-15 ECB Announcement
...Expected 1.00%...Previous 1.00
EU GDP Q2 '10 2nd
...Actual 1.0%...Actual 1.0%
US ADP Emp
...Actual -39K...Actual -10K
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