Daily Forex Snapshots

Asian Session: BoJ cuts rates to 0.10% and approves a $489Bn stimulus plan.

December 19, 2008 11:17 AM CET

G10 Advancers and Decliners vs USD

	JPY	0.985
	GBP	0.684
	DKK	-1.147
	SEK	-1.156
	CHF	-1.181
	EUR	-1.211
	AUD	-1.395
	NZD	-2.053
	NOK	-2.459
	CAD	-3.253

Global Indexes

Current Level

% Change

Nikkei 225 Index	8588.52	- 0.91
Hang Seng Index	15127.51	- 2.39
Shanghai Index	2018.46	+ 0.14
FTSE 100 Index	4287.88	- 0.99
DAX Index	4721.37	- 0.74
Nasdaq futures	1216.75	- 0.71
DJIA futures	8628	- 0.58

World Markets

Current Level

% Change

Gold	848.72	- 0.49
Silver	10.905	- 0.68
VIX	47.34	- 5.02
Crude wti	36.68	+ 1.27
USD Index	79.997	+ 0.67

Todays Calender

Estimates

Country / GMT

None

Currency Tech

AUDUSD
R 2: 0.7231
R 1: 0.7145
R 1: 0.6990
CURRENT: 0.6894
S 1: 0.6895
S 2: 0.6818
S 3: 0.6741

EURJPY
R 3: 129.69
R 2: 127.94
R 1: 126.01
CURRENT: 125.26
S 1: 124.45
S 2: 122.89
S 3: 122.22

USDSGD
R 3: 1.4956
R 2: 1.4675
R 1: 1.4562
CURRENT: 1.4487
S 1: 1.4274
S 2: 1.4182
S 3: 1.4084

Market Brief

The Bank of Japan cut rates today by 0.2% to 0.1% after a two day monetary policy meeting. The BoJ follows the decision made on Tuesday by the FOMC. The Yen had risen to 13 year highs against the dollar when the U.S lowered its rates below the Japanese borrowing rate for the first time in recent memory. The USDJPY gave way to the dollar during yesterday’s session, meeting a resistance at 90.01 before channeling down through the night – Yen rising further after rate cut.

The MoF’s Nakagawa said he is “keenly watching” currency markets and has “the means” to limit the Yen’s advance. This comment came before the MoF approved a further 43 Trillion Yen ($489Bn) stimulus plan to improve their major banks’ liquidity – this comes in addition to the 27 Trillion Yen plan announced in October.

The dollar renewed with its bullish ways yesterday as the FOMC’s rate cut on Tuesday, rising against the majors for most of the session. In early morning trading the dollar continued to advance as rumors that the “Big Three” automakers were closer to an eventual deal with the U.S Government – GM and Chrysler having closed many of their plants in a bid to conserve much needed cash.

Crude’s retreat to below $37bbl yesterday continues to move markets, the continued weak demand despite OPEC’s 2.2m barrel cut sends “black gold’s” price tumbling to new lows – while winter reigns in the northern hemisphere. The incredibly low interest rates that all the major world powers have in a bid to stimulate their relative economies has focused much attention on the two currencies that analysts feel will do the best in 2009 – many analysts see the Euro loosing ground to the strong dollar in the 3 months ahead – targeting a level near 1.25.

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