Daily Forex Snapshots

US Session: Fundamentals Still Displaced From FX Markets as Dollar Flat Despite Non Farm Payroll Data

November 08, 2008 12:52 AM CET

G10 Advancers and Decliners vs USD

	Jpy	0.49
	Gbp	0.10
	Chf	0.06
	Nok	0.03
	Eur	0.02
	Dkk	0.01
	Sek	-0.02
	Cad	-0.72
	Nzd	-1.03
	Aud	-1.28

Global Indexes

Current Level

% Change

DJIA Index	8,943.81	+ 2.85
S&P 500 Index	930.99	+ 2.89
NASDAQ 100 Index	1,647.40	+ 2.41
FTSE 100 Index	4,364.96	+ 2.17
CAC 40 Index	3,469.12	+ 2.42
DAX Index	4,938.46	+ 2.60
SMI Index	6,008.16	+ 1.41

World Markets

Current Level

% Change

Crude wti	61.04	+ 0.44
Gold	736.65	+ 0.52
Silver	10.06	+ 0.71
USD Index	85.91	+ 0.02
VIX	56.10	- 11.90

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

Currency Tech

AUDUSD
R 3: 0.7357
R 2: 0.7240
R 1: 0.7065
CURRENT: 65.09
S 1: 0.6550
S 2: 0.6339
S 3: 0.6011

EURJPY
R 3: 131.50
R 2: 131.05
R 1: 127.07
CURRENT: 124.73
S 1: 122.25
S 2: 121.40
S 3: 113.65

USDSGD
R 3: 1.5160
R 2: 1.5147
R 1: 1.5079
CURRENT1.4936
S 1: 1.4645
S 2: 1.4585
S 3: 1.4555

Market Brief

The dollar ended mostly flat against the majors based on a degree of uncertainty within the marketplace. The EurUsd closed marginally higher at the low 1.27 price area, while UsdJpy rose nearly 50 pips to low range of 98. The GbpUsd was mostly flat only up 15 pips to mid range of 1.56. The equity markets recovered some of yesterday’s losses with the Dow higher by 2.85% or 248pts, and the DAX in Europe up 2.42% or 124pts. Bond yields remain compressed with the 2yr at 1.32%, an exceptionally low level for short duration govt. securities. Commodities were fairly neutral with oil trading at $61bbl, and gold at $736oz.

The Eurozone economy was dealt another blow with the weak German industrial production data released today. The reading came in at -3.6% vs. -1.7% exp, this is evidentiary to the steep decline in growth. The ECB rate cut of 50bps will most likely be the beginning of a series of reductions to stimulate the financial markets. In the UK there was limited economic news, but the Sterling has retraced back to levels we’ve seen in 2002. Our outlook is bearish for both the Euro and Cable based on worsening global economic conditions. Despite rising unemployment and a worst than estimated Non-Farm Payrolls figure at 240k, the dollar remained resilient as Investors and Traders alike find security in Usd denominated assets.

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