Daily Forex Snapshots

Asian Session - G7 Hype

April 11, 2008 9:53 AM CEST

G10 Advancers and Decliners vs USD

	NOK	0.67
	SEK	0.66
	DKK	0.50
	EUR	0.45
	CHF	0.30
	CAD	0.28
	NZD	0.08
	AUD	0.04
	GBP	0.01
	JPY	-0.03

Global Indexes

Current Level

% Change

Nikkei 225 Index	12,628.00	+ 0.22
Hang Seng Index	24,576.89	+ 1.61
Shanghai Index	3,492.89	+ 0.60
FTSE futures	5,982.00	- 0.19
CAC futures	4,890.50	+ 0.60
SMI Futures	7,243.00	- 1.38
DJIA futures	12,628.00	+ 0.22

World Markets

Current Level

% Change

Gold	923.74	- 0.54
Silver	17.90	- 0.16
VIX	21.98	- 3.63
Crude wti	110.00	- 0.10
USD Index	72.00	- 0.16

Todays Calender

Estimates

Country / GMT

Import Price Index (Mar)	0.2%(+13.6	2.0%(+13.7	US / 13.30
New Housing Prices Index (Feb) m/m	0.4%	0.6%	US / 13.30
Univ. of Michigan Cons. Conf. Index (Apr Prov.)	69.0	69.5	US / 15.00

Currency Tech

AUDUSD
R 3: 0.9499
R 2: 0.9473
R 1: 0.9354
CURRENT: 0.9320
S 1: 0.9243
S 2: 0.9177
S 3: 0.9100

EURJPY
R 3: 162.28
R 2: 161.72
R 1: 161.22
CURRENT: 169.92
S 1: 160.07
S 2: 158.81
S 3: 158.55

USDSGD
R 3: 1.3940
R 2: 1.3887
R 1: 1.3792
CURRENT: 1.3581
S 1: 1.3555
S 2: 1.3500
S 3: 1.3400

Market Brief

Usd was slightly weaker in Asian session as markets put themselves ahead of the G7 meeting this weekend. EurUsd climbed back to the 1.5780 lvls after a steep correction in late NY while UsdCad continued to trade within 1.0160 – 1.0200 range despite crude steadily increasing. Just more choppy trade in an overall odd week.

REINZ house sales dropped m/m -19.3%, y/y -53.3%. The REINZ had postponed the release from yesterday, fueling significant to speculation that the numbers were so bad that re-calculation was in order. However market seem to have been prepared for the negative data and shrugged off the news on the release.

As markets had expected the ECB held rates steady at 4.00%. However the accompanying statement and press conference was slightly less hawkish then the market had anticipated causing the Eur to sell off. In addition the markets have increased their bets on a cut in September. The focus of the press conference was still entrenched on upside risks to inflation but a considerable portion was dedicated to the financial markets and the greater than estimated drag on sentiment. On the Fx front Trichet said he "deplored", again, the excessive volatility which also impeded the Eur upwards momentum. We are expecting the Eur to push higher near term.

While there is considerable hype surrounding this weekends G7 meeting we doubt there is any real event risk. We don’t expect anything major from the ministers. Three reasons for this : 1. Usd depreciation has been justified by economic fundamentals, 2. Intervention would run against calls for China to increase flexibility 3. The US economy is enjoying the timely nature of the Usd weakness. While rogue officials, from Europe or Japan, might make random comments, we doubt they will have any real or lasting impact on the market unless they are expressed in the official communiqué (to be released Saturday),

Perhaps the most interesting development this week will have been in EM especially SGD and TRY. UsdSgd fell off the map yesterday as the MAS re-centered the midpoint SGD NEER target range in order to combat inflation. And Try bucked the general trend of EM strength, and stayed week as deteriorating political and economic conditions have been weighting on the currency.

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.