Daily Forex Snapshots

US Session - Mixed Economic Data Has Little Effect on Dollar

June 19, 2008 4:51 PM CEST

G10 Advancers and Decliners vs USD

	NZD	0.72
	GBP	0.61
	CAD	0.48
	AUD	0.43
	JPY	-0.01
	DKK	-0.17
	EUR	-0.19
	NOK	-0.27
	SEK	-0.32
	CHF	-0.62

Global Indexes

Current Level

% Change

Nikkei 225 Index	14,130.17	- 2.23
FTSE 100 Index	5,731.90	- 0.43
CAC 40 Index	4,609.92	- 0.91
DAX Index	6,735.21	+ 0.09
DJIA Index	12,012.77	- 0.13
S&P 500 Index	1,335.92	- 0.14
NASDAQ 100 Index	2,428.85	- 0.30

World Markets

Current Level

% Change

Gold	905.67	+ 1.26
Silver	17.55	+ 0.97
VIX	22.26	+ 0.09
Crude wti	134.88	- 1.37
USD Index	73.51	+ 0.09

Todays Calender

Estimates

Country / GMT

No additional Releases

Currency Tech

AUDUSD
R 3: 0.9648
R 2: 0.7527
R 1: 0.9490
CURRENT: 0.9487
S 1: 0.9405
S 2: 0.9305
S 3: 0.9290

EURJPY
R 3: 170.05
R 2: 169.10
R 1: 168.05
CURRENT: 167.12
S 1: 166.75
S 2: 165.53
S 3. 164.97

USDMXN
R 3: 10.4700
R 2: 10.4690
R 1: 10.3880
CURRENT: 10.3138
S 1: 10.2755
S 2: 10.2500
S 3: 10.2000

Market Brief

The dollar showed limited price movement in the European session based on mixed data out of both Europe and the US. Equity indices opened up slightly higher in the US after triple digit losses yesterday, while the European equity markets traded flat across the board. The EurUsd traded continues to trade within the 1.55-1.54 range, while the UsdJpy remains at the 108 level. The GbpUsd rose to 1.97 overnight, as UK retail sales came in stronger than expected. Gold is trading higher at 902 and silver is up slightly at 17.52, as inflation hedgers pick up precious metals to manage energy prices. Bonds fell slightly, but will likely snap back with the after the fall in the manufacturing data from Philadelphia. The US market will be listening intently to commentary from both FOMC Member Kohn and Treasury Secretary Henry Paulson.

UK retail sales unexpectedly rose 3.5% vs. -0.3% projected, while this is a volatile number it pushed the cable up against Usd. This stronger retail sales number allows the BoE to hold off from a rate cut, and focus more on inflationary pressure. Mervyn King stated that “the BoE will have no problem taking whatever action is needed to return inflation to its target level of 2%.” Light news out of the Eurozone with the exception of a rise in the Italian Unemployment rate from 6.0% to 6.5%. The Eur showed little movement as traders await action from the ECB in the next monetary policy meeting.

In the US, jobless claims fell to 381k vs. 370k exp. The Leading Economic indicators rose at the same 0.1% rate as last month, while the Philadelphia Fed Index fell sharply by 17.1% compared to 10% consensus figure. The dollar remains resilient at the high 1.54 level, as Traders are still looking for aggressive price targets on the Usd for year end. Investors are looking to lock in positions at these lower levels and hold in anticipation of a extended dollar rally. The US will need to see some serious improvement in economic conditions before we can accurately gauge the beginning of a tightening cycle.

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