Daily Forex Snapshots

Asian Session - Paulson in China

April 03, 2008 9:47 AM CEST

G10 Advancers and Decliners vs USD

	CAD	0.53
	AUD	0.44
	NOK	0.35
	GBP	0.07
	NZD	0.04
	SEK	0.01
	DKK	-0.04
	EUR	-0.06
	CHF	-0.13
	JPY	-0.24

Global Indexes

Current Level

% Change

Nikkei 225 Index	13,389.90	+ 1.52
Hang Seng Index	24,282.57	+ 1.71
Shanghai Index	3,446.24	+ 2.93
FTSE futures	5,932.50	+ 0.05
CAC futures	4,906.50	- 0.16
SMI Futures	7,469.00	- 0.61
DJIA futures	12,628.00	+ 0.07

World Markets

Current Level

% Change

Gold	901.76	- 0.28
Silver	17.27	+ 0.19
VIX	23.43	+ 3.30
Crude wti	104.43	- 0.34
USD Index	72.40	+ 0.19

Todays Calender

Estimates

Country / GMT

CIPS/RBS Report on Services (Mar)	53.3	54.0	UK / 9.30
Retail Sales (Feb)	0.2%(0.0%)	0.4%(-0.1%	EZ / 10.00
Initial Jobless Claims (Mar 29th)	366k	366k	US / 13.30
ISM Non-Manufacturing Index (Mar)	48.5	49.3	US / 15.00

Currency Tech

AUDUSD
R 3: 0.9290
R 2: 0.9254
R 1: 0.9158
CURRENT: 0.9172
S 1: 0.9024
S 2: 0.8979
S 3: 0.8953

EURJPY
R 3: 162.28
R 2: 161.41
R 1: 160.75
CURRENT: 160.81
S 1: 158.55
S 2: 156.34
S 3: 155.90

USDSGD
R 3: 1.4136
R 2: 1.4046
R 1: 1.3940
CURRENT: 1.3830
S 1: 1.3741
S 2: 1.3696
S 3:1.3500

Market Brief

Usd continued its choppy trading pattern in Asian session regaining some of it loses to the Eur. Aud, Nzd and Cad performed well in line with stronger commodity prices and weaker Usd. Recently the greenback has been hightly reactive to the price of crude as well as shifting interest rate expectations. Currently the market is split between 25bp & 50bp cut. Whether this will represent the final cut to a dramatic easing cycle is still a moot question. We are currently leaning to a 50bp cut but could easily shift with the release of ISM – non manufacturing data and payrolls figures.

Yesterday Bernanke testified to the Joint Economic Committee. He acknowledged that the economy “will not grow much, if at all, over the first half of 2008 and could even contract slightly” but steered well clear of the "R" word (as to be expected). On the inflation front his comments were slightly less hawkish then the Fed’s last accompanying statement.

In China U.S. Treasury Secretary Paulson issued a dire warning that "it is dangerous if you don't have a renminbi that reflects underlying fundamentals." In addition he stated that “appreciation has been good.” So far Paulson’s two day tour of Beijing has been uneventful but we weren’t expecting much.

Today’s ISM non manufacturing survey will hold the markets interest for a moment but will be overshadowed by Bernakes testimony and Friday's payroll (especially after yesterday unexpected 8k ADP survey).

11.00gmt - ECB’s Trichet speaks
15.00gmt - Fed’s Bernanke Testifies to Sen. Banking Comm.

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