|
|
US Session: Dollar Closing the Week Stronger Across the G10
December 20, 2008 12:56 AM CET
|
|
G10 Advancers and Decliners vs USD |
| | Dkk | 2.37 |  | | | Nok | 2.12 | | | | Chf | 1.82 | | | | Nzd | 1.53 | | | | Cad | 1.19 | | | | Aud | 1.00 | | | | Sek | 0.68 | |  | Jpy | -0.10 | | | Gbp | -0.63 | | | Eur | -2.30 | |
|
|
Global Indexes |
Current Level |
% Change |
|
| DJIA futures | 8,649.00 | - 1.00 | | S&P future | 881.30 | - 1.26 | | Nasdaq futures | 1,211.00 | - 1.18 | | FTSE futures | 4,234.00 | - 2.12 | | CAC futures | 3,217.50 | - 0.47 | | DAX Index | 4,670.00 | - 1.79 | | SMI Futures | 5,439.00 | - 1.57 |
|
|
World Markets |
Current Level |
% Change |
|
| Crude wti | 33.87 | - 6.49 | | Gold | 838.28 | - 1.72 | | Silver | 10.89 | - 0.87 | | USD Index | 81.30 | + 2.30 | | VIX | 44.93 | - 5.09 |
|
|
Todays Calender |
Estimates |
Previous |
Country / GMT |
|
| No major events scheduled | | | |
|
|
|
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 dollar gained substantially against most of the majors recovering most of this week’s losses. The EurUsd sunk over 360 pips to the high range of 1.38, while the UsdJpy was mostly flat up only 7pips to mid 89 price area. The GbpUsd dropped an additional 160 to the mid 1.48 level, due to several factors including weak economic conditions. Equity markets have traded traded closely to yesterday’s levels with the Dow and SPX virtually unchanged. Bond have given up light ground with 2yr and 10 yr yields higher by 5bps, but remain considerably lower from average levels. The commodities sector was the most active with oil down 8.25% at $33bbl, and gold off 1.61% at $839oz.
We are seeing an unwinding in risk throughout the marketplace, hence the revival dollar strength. In addition, some macro‐themes are having a strong influence on trading the key factor being interest rate expectations for both the UK and the Eurozone. The ECB is using alternative mechanisms to generate liquidity in money‐markets, raising the emergency lending rate and lowering the overnight deposit rate. These changes do not have a direct effect to the credit sector until January. We still may see a rate cut in Q1 2009, but the ECB is certainly reassessing the pace by which they ease monetary policy. In the UK, Gfk Consumer confidence was better than expected ‐33 vs. ‐39, which is still a negative reading. The Sterling continues to correct, and the selling pressure will probably settle in the beginning of next year.
US financials cannot get a break, as S&P downgraded 11 major financial institutions including the once AAA rated Wells Fargo bank on the basis of a negative outlook for the sector. US GDP, Existing home sales, and University of Mich. confidence is scheduled to be released next week on the Dec 23rd. The data is not likely to be positive as surrounding factors in housing and consumer credit are restricting spending, as well as limiting growth. The dollar is likely to thrive in this environment, as the treasury bubble persist with such heavy demand for US bonds, once this rally ends we will see strong move to the downside for the greenback.
Risk Disclaimer:
Although every investment involves some degree of risk, the risk of loss in trading off‐exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make an informed decision prior to investing. The material presented here is not to be construed as trading advice or strategy. ACMUSA makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change.
|
|
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.
|
| |
|
|
| |
| |
|