Daily Forex Snapshots

Asian Session: Tokyo ends 2008 on a high, but books worst year in its history, rest of Asia also trading up.

December 30, 2008 11:12 AM CET

G10 Advancers and Decliners vs USD

	NOK	0.836
	SEK	0.738
	EUR	-0.084
	JPY	-0.117
	AUD	-0.129
	DKK	-0.132
	NZD	-0.298
	GBP	-0.447
	CAD	-0.867
	CHF	-0.938

Global Indexes

Current Level

% Change

Nikkei 225 Index	8859.56	+ 1.29
Hang Seng Index	14235.5	- 0.65
Shanghai Index	1832.91	- 0.95
FTSE 100 Index	4357.28	+ 0.88
DAX Index	4784.18	+ 1.69
DJIA futures	8550	+ 0.73
Nasdaq futures	1189	+ 1.15

World Markets

Current Level

% Change

Gold	869.8	- 1.19
Silver	10.78	- 1.10
VIX	43.9	+ 1.20
Crude wti	39.43	- 1.47
USD Index	557.47	+ 1.07

Todays Calender

Estimates

Country / GMT

USD Chicago Purchasing Manager	33	33.8	US / 14:45
USD Consumer Confidence	45.5	44.9	US / 15:00

Currency Tech

AUDUSD
R 2: 0.7231
R 1: 0.7145
R 1: 0.6990
CURRENT: 0.6924
S 1: 0.6855
S 2: 0.6818
S 3: 0.6741

EURJPY
R 3: 129.69
R 2: 128.37
R 1: 127.95
CURRENT: 127.81
S 1: 127.42
S 2: 126.71
S 3: 126.01

USDSGD
R 3: 1.4956
R 2: 1.4675
R 1: 1.4562
CURRENT: 1.4434
S 1: 1.4274
S 2: 1.4182
S 3: 1.4084

Market Brief

Here we are, in the final moments of a year one struggles to find adequate words to describe. It would have been a year that redefines many economic and financial practices, a very real and painful paradigm shift. As we take stock of the year behind us we can’t but anticipate what 2009 has in store for us, have the protagonists in this whole affair – those that are left that is – learnt from the errors of their ways? 2009 will be a year of reconciliation, further government intervention and consolidation.

The EURUSD traded higher this morning as the dollar gave back yesterdays gains. The pair rose from 1.3920 levels, traded sideways around 1.4120 for most of the Asian Session then retracing to 1.40 before rising again near the European open to 1.4140 where it is trading now. USDJPY had a more subdued session, dropping 40 pips in Asian trading as Tokyo ends 2008 on a half day of trading.

The Nikkei 225 booked a 1.3% gain on exceptionally high volumes today as investors made their last trades for the year. There was no real catalyst for the move except for the usual end of year activity – Portfolio squaring, covering and window-dressing. Despite the Japanese markets’ last hurrah for ’08 the Nikkei ends 2008 on a 42.1% decline – the largest 1 year drop in it’s 58 year history as Japan and all the other large economies fall into recession. Various news wires overnight reported that the BoJ and the Japanese government may launch a new scheme to buy up to 10Tln worth of bad loans and financial assets with public funds.

In other Asian developments the Australian stocks rose by 0.9% as firmer copper prices helped boost firms such as BHP Billiton but remain on course for a catastrophic year. 3 large Chinese steel works announced a merger to create the largest listed steel maker. The stocks have been suspended for the past 6 months pending the merger and dropped when trading resumed today.

Crude continues to trade higher today, up above $40 for a moment in Asian trading. Gold traded lower after a high of $884/oz late yesterday.

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