Daily Forex Snapshots

Asian Session - Usd Steady on Low Volume

April 29, 2008 10:19 AM CEST

G10 Advancers and Decliners vs USD

	JPY	0.14
	CAD	-0.05
	CHF	-0.09
	SEK	-0.10
	NOK	-0.13
	EUR	-0.17
	DKK	-0.16
	GBP	-0.21
	AUD	-0.50
	NZD	-0.74

Global Indexes

Current Level

% Change

KOSPI Index	1,811.51	- 0.64
Hang Seng Index	25,950.66	+ 1.10
Shanghai Index	3,495.22	+ 0.59
FTSE futures	6,109.00	+ 0.57
CAC futures	4,961.00	- 0.31
SMI Futures	7,539.00	+ 0.68
DJIA futures	12,860.00	- 0.14

World Markets

Current Level

% Change

Gold	890.41	- 0.31
Silver	72.66	+ 0.21
VIX	19.64	+ 0.24
Crude wti	118.23	- 0.43
USD Index	72.66	+ 0.21

Todays Calender

Estimates

Country / GMT

Consumer Credit (Mar)	+£1.1bn	+£2.4bn	UK / 9.30
BoE Mortgage Approvals (Mar)	66,000	73,000	UK / 9.30
Case-Shiller 20-City House Price Index (Feb)	-12.0%	-10.7%	US / 14.00
Conference Board Consumer Conf. Index (Apr)	61.5	64.5	US / 15.00

Currency Tech

AUDUSD
R 3: 0.9544
R 2: 0.9496
R 1: 0.9422
CURRENT: 0.9327
S 1: 0.9292
S 2: 0.9272
S 3: 0.9249

EURJPY
R 3: 166.17
R 2: 164.98
R 1: 163.88
CURRENT: 162.81
S 1: 162.67
S 2: 162.16
S 3: 160.81

USDSGD
R 3: 1.3887
R 2: 1.3746
R 1: 1.3659
CURRENT: 1.3605
S 1: 1.3571
S 2: 1.3470
S 3: 1.3318

Market Brief

Usd was range bound in Asian session as traders are looking to stay on the sidelines before the FOMC meeting Wednesday. Low volumes have been seen across all asset classes which is not surprising given the uncertainty and importance surrounding the Fed's announcement. The market is expecting a 25bp cut, however there is speculation, that the Fed will actually hold rates keeping thereby their powder dry untill they see more compelling data. UsdJpy is near a two year high and was able to rally in late Asia after an early morning sell off.

US stocks closed mixed as investors turned cautious ahead of the Federal Reserve's two-day policy meeting starting Tuesday. Many expect the meeting to wrap up with the Fed cutting rates one more time, but then putting its easing cycle on hold. Initially, US stocks rose for what looked like the fourth day of gains after Warren Buffet financed the $23bln takeover of Wrigley (+23%) and Investor Kirk Kerkorian bought a stake in Ford (9%), boosting confidence that the market will gain as earnings improve. However, in the last hour of trading stocks gave back all intraday gains to close lower as buyers failed to close the S&P above the key 1400 level. Gold and crude oil futures finished firmer.Asian markets are higher this morning with the Hang Seng up 1.1% and the MSCI A-P is up 0.8%, while the Nikkei is closed today. Pimco will be trading credit derivatives for its first Asian local-currency bond fund, as CDS prove their appeal. European Futures are trading below fair value (- 15 Bps on avg), mainly due to US stocks retracement during the last trading hour and also because Deutsche Bank (DBK) announced this morning another major loss, which led Ackermann to reduce his stake into Allianz (ALV)

A light calendar for the Continent will have markets subdued. In the US Cases-Shiller house price index and Confidence Board’s consumer confidence will provide the first real event risk. Given the market's new found optimism in the greenback, these figures could easily damper the goodwill. These are two areas that have seen significant weaknesses with little signs of stabilizing. In addition weak confidence means that US households will spend less of their tax rebate then originally anticipated, choosing to pay off debts to save or offset spiraling energy cost with only a small portion heading to discretionary spending as was hoped.

In the EMs we expect India to tighten interest rates by 25bp today, bringing key repo rate to 8.00%. We believe India, along with many of the Asian Central banks, will continue to raise interest rates as concerns over inflation stiffle those of growth.

9.45gmt - MPC’s King Testifies to Treasury Committee

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