Daily Forex Snapshots

Asian Session - Equities Retreat

April 22, 2008 9:58 AM CEST

G10 Advancers and Decliners vs USD

	JPY	0.14
	NOK	-0.06
	AUD	-0.06
	CHF	-0.07
	NZD	-0.15
	EUR	-0.18
	DKK	-0.22
	GBP	-0.24
	SEK	-0.25
	CAD	-0.29

Global Indexes

Current Level

% Change

Nikkei 225 Index	13,547.82	- 1.08
Hang Seng Index	24,614.12	- 0.43
Shanghai Index	3,147.79	+ 0.98
FTSE futures	6,058.50	- 0.15
CAC futures	4,842.00	- 0.43
SMI Futures	7,381.00	+ 0.13
DJIA futures	12,772.00	- 0.21

World Markets

Current Level

% Change

Gold	914.08	- 0.29
Silver	17.39	- 0.40
VIX	20.50	+ 1.83
Crude wti	117.08	- 0.34
USD Index	71.78	+ 0.18

Todays Calender

Estimates

Country / GMT

BoC Rate Announcement	3.00%	3.50%	CA / 14.00
Existing Home Sales (Mar)	4,900,000	5,030,000	US / 15.00
OFHEO House Price Index (Purchase Only)	-1.5%	-1.1%	US / 15.00
Richmond Fed (april)	1	6	US / 15.00
Retail Sales (feb)	4.0%	3.9%	MX / 20.30

Currency Tech

AUDUSD
R 3: 0.9499
R 2: 0.9473
R 1: 0.9445
CURRENT: 0.9407
S 1: 0.9272
S 2: 0.9250
S 3: 0.9206

EURJPY
R 3: 166.69
R 2: 166.17
R 1: 164.86
CURRENT: 163.56
S 1: 162.68
S 2: 162.16
S 3: 160.44

USDSGD
R 3: 1.3887
R 2: 1.3792
R 1: 1.3626
CURRENT: 1.3521
S 1: 1.3499
S 2: 1.3318
S 3: 1.3138

Market Brief

Usd was slightly stronger in Asian session and as traders retreated from yesterday strong rally. UsdJpy fell to a session low of 102.80 as the Nikkei failed to follow the US and fell over -1.08%. Crude price firmed around the $117bll as OPEC and trouble in Nigeria kept the commodity under pressure.

EurUsd saw a sharp sell off just before the European open. While the exact reason are somewhat unclear there is growing speculation that the move by Germany BdB banking associations to take control of property lender Duesseldorf Hypothekenbank (lender ran into problems created to the credit crisis) scared the market.

The Gbp continued to slide as disappointment around the BoE mortgage rescue plan which failed to meet the markets expectations grows. Under the scheme the BoE will swap UK Gov bonds for select commercial mortgage securities. The idea, similar to the Feds, is aimed at easing liquidity issues and lifting slumping confidence. While too early to gauge success or failure, creating higher barriers and additional costs should be a means by which to filter out those that don’t have true funding issues which will be a positive. However we are still bearish on the Gbp as broad deterioration in fundamentals outside of the housing sector and spillover into consumer spending will pressure growth.

We are expecting the BoC to cut rates by 50bp to 3.00% exp in line with market expectations. Currently the market is pricing in 48bp of easing and comments from central banks have led us to believe that the are looking to follow the Fed's aggressive easing cycle downwards. Cad is beginning to be pulled by two forces: the higher commodity prices and exposure to the US and slowdown in domestic growth. Both these forces should keep UsdCad in a 1.000 - 1.0330 range near term.

12.00gmt - MPC’s Besley Speaks on Inflation & the Global Economy

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