Daily Forex Snapshots

US Session: Dollar Mixed Against Majors, while Commodities Pick Up Light Gains in Year End

December 31, 2008 11:02 PM CET

G10 Advancers and Decliners vs USD

	Aud	1.66
	Gbp	1.39
	Nok	0.75
	Nzd	0.21
	Cad	-0.35
	Jpy	-0.36
	Dkk	-0.46
	Eur	-0.59
	Sek	-0.85
	Chf	-0.20

Global Indexes

Current Level

% Change

DJIA futures	8,727.00	+ 1.01
S&P future	900.10	+ 1.34
Nasdaq futures	1,212.50	+ 0.54
FTSE futures	4,390.00	+ 0.39
CAC futures	3,221.00	+ 0.09
DAX futures	4,834.50	+ 2.52
SMI Futures	5,451.00	+ 0.98

World Markets

Current Level

% Change

Crude wti	42.69	+ 9.38
Gold	881.70	+ 0.90
Silver	11.38	+ 3.83
USD Index	81.31	+ 0.51
VIX	40.00	- 3.92

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

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

The dollar displayed a bit of strength recovering from losses in yesterday’s session. The EurUsd fell 85pips through 1.40, while the UsdJpy rose 41pips to the high range of 90. The GbpUsd posted significant gains up 185pips seeing resistance at 1.46, the pair also saw an increase in volatility. Equity markets were positive in the US and Europe, with the Dow up over 100pts or 1.25% ending the year on an optimistic note. Bond yields rose across the curve, with largest gainers being the 10yr and 30yr both of which jumped more than 10bps, but remain at historical lows. Commodities were fairly active as heavy short covering ensued and gave oil a light bounce to the upside breaking previous resistance of $40bbl closing at $42bbl. Gold prices were subject to heavy volatility trading lower in the early part of the trading session, but have since rose a little less than 1% to $879oz.

There was limited data on the economic front being that we are at year‐end. In the US, jobless claims came in at 492k vs. the projected figure of 575k. This was received positively by the market, but most Investors and Traders have already closed their books awaiting the New Year. On the housing front, home prices accounted for through the Case and Schiller index dropped more than expected by 18%. We think an aggressive move to the downside in home prices is essential to the recent market correction which has already taken place in equities and commodities. Once home prices return to normal levels a larger scale recovery should take place, leading to a deleveraging in treasuries and reversal of dollar strength.

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