Daily Forex Snapshots

Late US Session-Dollar Bulls Sustain Positive Momentum

August 16, 2008 12:28 AM CEST

G10 Advancers and Decliners vs USD

	Dkk	0.93
	Sek	0.85
	Jpy	0.70
	Aud	0.69
	Nok	0.62
	Chf	0.37
	Gbp	-0.20
	Cad	-0.42
	Nzd	-0.88
	Eur	-0.93

Global Indexes

Current Level

% Change

DJIA Index	11,663.00	+ 0.39
S&P 500 Index	1,299.70	+ 0.46
NASDAQ 100 Index	1,965.50	- 0.01
FTSE 100 Index	5,449.00	- 0.99
CAC 40 Index	4,453.50	+ 0.74
DAX Index	6,476.50	+ 0.05
SMI Index	7,239.00	+ 0.29

World Markets

Current Level

% Change

Crude wti	113.77	- 1.08
Gold	787.70	- 2.35
Silver	12.75	- 10.05
USD Index	77.18	+ 0.67
VIX	19.58	- 3.74

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

Currency Tech

AUDUSD
R 3: 0.8952
R 2: 0.8846
R 1: 0.8797
CURRENT: 0.8629
S 1: 0.8625
S 2: 0.8593
S 3: 0.8513

EURJPY
R 3: 165.59
R 2: 164.41
R 1: 163.88
CURRENT: 162.56
S 1: 162.01
S 2: 161.39
S 3: 160.14

USDSGD
R 3: 1.4265
R 2: 1.4219
R 1: 1.4159
CURRENT: 1.4164
S 1: 1.4025
S 2: 1.3891
S 3: 1.3819

Market Brief

The Usd carried its recent rally into today’s trading with stable movement to the upside in the early session. The EurUsd fell over 150 pips to 1.46, while the UsdJpy rose substantially trading through previous resistance to 110. The GbpUsd experienced losses, trading down over 70 pips to 1.86, based primarily on the bearish sentiment regarding the UK economy. Equity markets closed marginally higher in the US, and mostly flat in Europe. Traders remained neutral in anticipation of further clarity regarding the outlook of the global economic situation. The yield curve is normal with long term rates higher then short term rates, thus implying higher inflation but a positive sentiment regarding the health of financial markets. Commodity prices slid, with oil in particular falling to 112 and gold at 787. Currency markets remain volatile, which is the central reason for the recent price swings we’ve seen across the majors.

The Empire Manufacturing data came in surprisingly better than expected at 2.8 vs. -4.0, in addition industrial production rose 0.2% vs. 0.0% exp. Michigan Consumer Confidence came in slightly lower than the consensus figure of 62, but higher than the previous reading at 61.7. The recent economic data is representative of a slow shift in the trend of economic news out of the US. Traders have already begun to position themselves as 1 month implied volatility rose to 10.93 on the EurUsd, which has experienced several trading sessions of price movements in excess of 100 pips. We are likely to see a similar level of volatility in coming weeks as the market determines the true price of oil, as well as, the likelihood the Fed will raise rates. We remain bullish on the Usd going into the end of the year, with the possibility of a slight retraction based on speculation of what direction monetary policy in the next quarter.

Risk Disclaimer:
Although every investment involves some degree of risk, the risk of loss in trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make an informed decision prior to investing. The material presented here is not to be construed as trading advice or strategy. ACMUSA makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change.

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.