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Asian Session - Rhetoric Increases in Japan
December 11, 2008 9:08 AM CET
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G10 Advancers and Decliners vs USD |
| | EUR | 0.98 |  | | | NOK | 0.97 | | | | DKK | 0.92 | | | | GBP | 0.90 | | | | SEK | 0.85 | | | | CAD | 0.59 | | | | NZD | 0.57 | | | | CHF | 0.43 | | | | JPY | 0.37 | | | | AUD | 0.30 | |
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Global Indexes |
Current Level |
% Change |
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| Nikkei 225 Index | 8,720.55 | + 0.69 | | Hang Seng Index | 15,543.75 | - 0.21 | | Shanghai Index | 2,029.51 | - 2.38 | | FTSE futures | 4,366.50 | - 0.46 | | DAX futures | 4,809.50 | + 0.55 | | SMI Futures | 5,753.00 | - 1.32 | | DJIA futures | 8,719.00 | + 0.04 |
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World Markets |
Current Level |
% Change |
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| Gold | 815.38 | + 0.59 | | Silver | 10.28 | + 0.39 | | VIX | 55.73 | - 5.39 | | Crude wti | 44.41 | + 2.04 | | USD Index | 84.68 | - 0.94 |
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Todays Calender |
Estimates |
Previous |
Country / GMT |
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| ECB’s Trichet Speaks on European Financial Integra | -- | -- | EZ / 7.05 | | SNB Interest Rate Announcement | 0.50% | 1.00% | SZ / 7.30 | | ECB Monthly Bulletin (Dec) | -- | -- | EZ / 8.00 | | BoE/NOP Inflation Attitudes Survey (Nov) | -- | 4.4% | UK / 8.30 | | CBI Monthly Industrial Trends Survey (Dec) | -4.9%,-2.0 | -4.7%,+6.7 | US / 12.30 | | Initial Jobless Claims (Dec 6th) | 525K | 509K | US / 12.30 | | Trade Balance (Oct) | -$53.5bn | -$56.5bn | US / 12.30 |
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Currency Tech |
AUDUSD
R 3: 0.6984
R 2: 0.6758
R 1: 0.6696
CURRENT: 0.6620
S 1: 0.6522
S 2: 0.6453
S 3: 0.6294
EURJPY
R 3: 124.61
R 2: 122.27
R 1: 121.48
CURRENT: 121.46
S 1: 119.01
S 2: 118.41
S 3: 117.88
USDSGD
R 3: 1.5265
R 2: 1.5114
R 1: 1.5073
CURRENT: 1.4902
S 1: 1.4875
S 2: 1.4772
S 3: 1.4682
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Market Brief |
The Usd fell sharply in the Asian session. The EurUsd was range bound for most of the session, but jumped from 1.3050 to 1.3150 as the session came to close. The UsdJpy continued to slide from yesterday's 93.03 highs to 92.27. Market sentiment was unchanged amid signs that the automaker bailout is now in the hand of the Senate. The media has been suggesting that the current proposal could fail in the Senate, as there are both Republicans & Democrats that object to the bailout plan in its current form. Asian regional indexes are slightly lower and European stock futures are pointing to a mixed open. Commodities have gained, as risky assets have rebounded recently with crude trading at $44.41bll and gold at $815.38oz.
The Japanese authorities could be ready to intervene in the foreign exchange market to halt Jpy appreciation for the first time in more than four years. Economic conditions have eroded sharply since late October (G7 meeting), when Finance Ministers and central bank Governors expressed anxiety “about the recent excessive volatility in the exchange rate of the Yen” and gave Japan a green light to intervene at their discretion. Recently, Governor Shirakawa said that the weakness in Japanese domestic economy is escalating and that the effect of FX pricing was being carefully watched.
In Europe, the market will be watching the Swiss National Bank's interest rate decision. After cutting 100bp in a surprise move last month, we expect the SNB to hold and evaluate the situation. However, SNB’s Roth has made it clear that the bank would reach deep into their bag of tricks to stop the financial turmoil from hurting the Swiss economy.
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US session: Risk Aversion Trade continues to Drive FX Prices
December 11, 2008 1:41 AM CET
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G10 Advancers and Decliners vs USD |
| | Jpy | 0.17 | | | | Aud | 0.17 | | | | Gbp | 0.13 | | | | Nzd | 0.12 | | | | Chf | 0.08 | | | | Dkk | 0.02 | |  | Eur | -0.09 | | | Cad | -0.15 | | | Sek | -0.15 | | | Nok | -0.17 | |
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Global Indexes |
Current Level |
% Change |
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| DJIA futures | 8,688.00 | - 0.31 | | S&P future | 891.30 | - 0.50 | | Nasdaq futures | 1,213.00 | - 0.33 | | FTSE futures | 4,366.50 | - 0.47 | | CAC futures | 3,316.50 | + 0.64 | | DAX futures | 4,809.50 | + 0.55 | | SMI Futures | 5,753.00 | - 1.32 |
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World Markets |
Current Level |
% Change |
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| Crude wti | 43.89 | + 0.85 | | Gold | 804.80 | - 0.72 | | Silver | 10.19 | - 0.54 | | USD Index | 85.48 | - 0.41 | | VIX | 55.73 | - 5.40 |
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Todays Calender |
Estimates |
Previous |
Country / GMT |
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| No Major Events Scheduled | | | |
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Currency Tech |
AUDUSD
R 3: 0.6984
R 2: 0.6758
R 1: 0.6696
CURRENT: 0.6526
S 1: 0.6453
S 2: 0.6294
S 3: 0.6232
EURJPY
R 3: 124.61
R 2: 121.48
R 1: 120.98
CURRENT: 118.74
S 1: 117.88
S 2: 115.88
S 3: 113.64
USDSGD
R 3: 1.5436
R 2: 1.5345
R 1: 1.5265
CURRENT: 1.5073
S 1: 1.4994
S 2: 1.4875
S 3: 1.4772
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Market Brief |
The trend of risk aversion persists with the dollar weaker against most of the majors. The EurUsd gained a little over 100pips to the low 1.30 price area, while the UsdJpy increased nearly 50 pips to the mid range of 92. The GbpUsd increased nearly 60pips trading through the previous resistance of 1.48. Equities are trading higher in the US, which was consistent with the positive move in European stock indexes. Bond yields are still compressed below normal levels, with the 2yr at .85% and the 10yr at 2.6%. Commodities rallied across the board seeing strong gains in energy and precious metals. Crude rose 3.9% to %43bbl, and gold strengthened 4.1% to $809bbl.
Economic data was weak out of Europe with French industrial production drastically lower than expected at ‐2.7% vs. 0.5%. In addition, Italian GDP was announced in line with projections at ‐0.5%. The current environment is not conducive to economic growth which is being reflected in the weak price levels. There was limited data out of the UK, and the sterling continued to trade in tandem with overall risk appetite. The sterling and euro should probably hold its tight correlation with equities and commodities into Q2 2009. Once the Obama administration comes into office and reformation programs are launched, it should cause a breakage in the pessimistic sentiment overwhelming financial markets.
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ACM Advanced Currency Markets SA (hereinafter referred as ACM) is a professional financial intermediary, directly regulated by the Swiss Federal Department of Finance, Anti Money Laundering Control Authority. As forex specialist, ACM provides only currency trading via highly professional forex trading software. All customers are aware that this information or any part thereof has been prepared without taking account of your objectives, financial situation and/or needs. This information is not intended as personalized investment advice and does not constitute a recommendation. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. The analysis is based on the information which ACM finds reliable and accurate, but ACM does not assume any responsibility for any material nor for the transactions made on the basis of the information or the estimates of the analysis. ACM cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct, indirect and/or consequential loss arising from any use of this information, document or its content. All opinions and estimates constitute ACM analysis as of the data and are subject to change without notice. ACM does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions. Past performance is not a reliable indicator of future performance.
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