Daily Forex Snapshots

Dollar Falls yet Again Amidst Growing Gloom

March 07, 2008 11:18 AM CET

G10 Advancers and Decliners vs USD

	JPY	.82
	CHF	.55
	GBP	.25
	EUR	.19
	CAD	.21
	DKK	.14
	AUD	.08
	SEK	.06
	NOK	.00
	NZD	-.38

Global Indexes

Current Level

% Change

Nikkei 225 Index	12,782.80	- 3.74
Hang Seng Index	22,501.33	- 3.61
Shanghai Index	4,300.52	- 1.39
FTSE 100 Index	5,687.20	- 1.37
CAC 40 Index	4,606.14	- 1.47
SMI Index	7,126.23	- 1.98
DJIA futures	12,019.00	- 0.42

World Markets

Current Level

% Change

Gold	980.00	+ 0.10
Silver	20.14	+ 0.49
VIX	27.55	+ 11.99
Crude wti	105.02	- 0.43
USD Index	72.80	- 0.27

Todays Calender

Estimates

Country / GMT

Change in Non Farm-Payrolls (Feb)	-	-17,000	US/13:30
Unemployement rate (Feb)	5.1 %	4.9 %	US/13:30
change in Consumer Credit (Jan)	+$5.0bn	+4.5bn	US/20:00

Currency Tech

AUDUSD
R 3: 0.9555
R 2: 0.9500
R 1: 0.9420
CURRENT: 0.9347
S 1: 0.9220
S 2: 0.9122
S 3: 0.9006

EURJPY
R 3: 161.05
R 2: 160.20
R 1: 159.22
CURRENT: 158.65
S 1: 155.95
S 2: 154.87
S 3: 154.07

USDSGD
R 3: 1.4220
R 2: 1.4151
R 1: 1.4063
CURRENT: 1.3872
S 1: 1.3882
S 2: 1.3865
S 3: 1.3800

Market Brief

The US unemployment figures will be the dominante trading theme today. This in the heels of further decline of the greenback to new record lows against a basket of major currencies. The dollar's lacklustre performance was largely the result of ECB decison yesterday to keep interest rates unchanged at 4 %. Markets sentiment is that the ECB will in all probabilty refrain from cutting rates till the inflationary pressure and fears will have subsided. Nonetheless markets are still anticipating a rate cut of 25 basis pointin June with a caveat that this decision would be postponed to september in the light of increasing commodity prices. Following the the ECB rate decision came the Bank of England's stance to keep her rates steady at 5.25 per cent. If inflationary pressures in England decline over this year there could then be some room for manoeuvre in rate policy. As of yet the general status quo in Europe withre regard to rate policy is driving the dollar down.

The decline in the Dollar contrast sharply with the price of Gold whixh continues to defy gravity. Precious metals in general have reached new highs. We are now just whiskers away from breaking through the $1,000 the ounce for gold. As for silver, the price hit a 27 year high.

this trend looks like it will continue driving even Asian stocks and currencies higher. The only curreny at the moment to be feel the downside is the New Zealand dollar. it fell by .2 per cent after the Reserve Bank of New Zealand left its official cash rate unchanged at 8.25 percent. New Zealand's economy seems to more affected by the global slowdown spurned by the recessionary fever in the US. Investors have started to measure the trade off between inflation and the gorwth for this economy driving the kiwi slightly lower. The sentiment could srpead elsewhere. For now all eyes are rivited on the dollar and its future prospects.

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