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Financial Markets Recover on Plans From the Fed
September 19, 2008 11:35 PM CEST
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G10 Advancers and Decliners vs USD |
| | Aud | 3.17 |  | | | Nok | 1.71 | | | | Nzd | 1.58 | | | | Cad | 1.16 | | | | Sek | 1.03 | | | | Gbp | 1.00 | | | | Dkk | 0.88 | | | | Eur | 0.86 | | | | Chf | 0.23 | |  | Jpy | -1.47 | |
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Global Indexes |
Current Level |
% Change |
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| DJIA Index | 11,350.26 | + 3.00 | | S&P 500 Index | 1,248.71 | + 3.50 | | NASDAQ 100 Index | 2,251.20 | + 2.37 | | FTSE futures | 5,266.50 | + 7.78 | | CAC futures | 4,255.00 | + 7.50 | | DAX futures | 6,141.50 | + 5.07 | | SMI Futures | 7,023.00 | + 5.42 |
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World Markets |
Current Level |
% Change |
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| Crude wti | 103.51 | + 5.75 | | Gold | 870.33 | + 2.29 | | Silver | 12.52 | + 4.61 | | USD Index | 77.67 | - 0.45 | | VIX | 31.88 | - 3.69 |
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Todays Calender |
Estimates |
Previous |
Country / GMT |
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| No Major Events Scheduled | | | |
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Currency Tech |
AUDUSD
R 3: 0.8402
R 2: 0.8243
R 1: 0.8076
CURRENT: 0.8030
S 1: 0.7803
S 2: 0.7675
S 3: 0.7616
EURJPY
R 3: 157.01
R 2: 152.92
R 1: 151.57
CURRENT: 151.15
S 1: 149.01
S 2: 147.52
S 3: 147.07
USDSGD
R 3: 1.4542
R 2: 1.4478
R 1: 1.4394
CURRENT: 1.4327
S 1: 1.4234
S 2: 1.4142
S 3: 1.4116
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Market Brief |
The Usd experienced further losses after a volatile day of trading. The EurUsd rose over 100 pips following yesterday's close to 1.4466, additionally the UsdJpy picked up major gains to the mid 107 level. the GbpUsd traded higher to 1.8318 based on further developments regarding the Fed's bailout plan. Commodities were higher across the board with oil at 104 up nearly 6%, and gold followed suit upward at 873. Treasury yields were substantially wider, with the 2yr up 47 bps and the 10yr higher by 27 bps, these moves were largely due to the decreased risk aversion in the markets.
German PPI decreased to -0.6% vs. -0.5% expected, which is in sync with the theory that price pressures are easing based on lower demand. This may give the ECB further leverage to maintain rates in the near-term, considering growth does not make any significant moves to the downside before year-end. There was limited data out of the UK, home price info is scheduled to be released next monday, which is likely to be negative.
The central story in the financial markets revolved mostly around the Fed's plan to rescue banks. Apparently the Fed will establish an $800bln fund for illiquid assets, and $200bln to insure money market funds. The market reacted very strongly on the equity side with the Dow up over 300 pts, but commodities seem to remain a safe haven for assets. With oil above $100, it will be difficult for the Usd to really pick any meaningful momentum in the near-term.
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Volatility Continues to be a Key Driver in the Market
September 19, 2008 12:38 AM CEST
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G10 Advancers and Decliners vs USD |
| | Cad | 0.23 | | | Sek | -0.8 | | | Aud | -0.13 | | | Dkk | -0.15 | | | Eur | -0.15 | | | Gbp | -0.17 | | | Jpy | -0.17 | | | Chf | -0.21 | | | Nok | -0.23 | | | Nzd | -0.29 | |
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Global Indexes |
Current Level |
% Change |
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| DJIA Index | 10,977.00 | - 0.07 | | S&P 500 Index | 1,205.10 | + 0.16 | | NASDAQ 100 Index | 1,706.25 | - 0.13 | | DAX futures | 4,886.50 | - 0.48 | | CAC futures | 3,958.00 | - 1.01 | | DAX Index | 5,845.00 | + 0.31 | | SMI Futures | 6,625.00 | - 0.38 |
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World Markets |
Current Level |
% Change |
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| Crude wti | 97.88 | + 0.74 | | Gold | 852.25 | + 0.17 | | Silver | 11.92 | - 0.45 | | USD Index | 78.02 | - 0.10 | | VIX | 33.10 | - 8.61 |
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Todays Calender |
Estimates |
Previous |
Country / GMT |
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| No Major Events Scheduled | | | |
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Currency Tech |
AUDUSD
R 3: 0.8402
R 2: 0.8243
R 1: 0.8076
CURRENT: 0.8030
S 1: 0.7803
S 2: 0.7675
S 3: 0.7616
EURJPY
R 3: 157.01
R 2: 152.92
R 1: 151.57
CURRENT: 151.15
S 1: 149.01
S 2: 147.52
S 3: 147.07
USDSGD
R 3: 1.4542
R 2: 1.4478
R 1: 1.4394
CURRENT: 1.4327
S 1: 1.4234
S 2: 1.4142
S 3: 1.4116
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Market Brief |
The Usd slid against most of the G10 based on another volatile day in the financial markets. The EurUsd rose 22 pips to the mid 1.43 level, while the UsdJpy gained a bit over 70 pips trading at the low 105 price area. The GbpUsd toggled back and forth but settled out slightly above yesterday’s approaching 1.82. Equity markets continued were embattled with extreme bouts of volatility in the trading session, with the Dow down as much as 200 pts at one point in the day to finish higher by 410 pts. Bond yields widened across the curve, with the 10 and 30 yr seeing the largest moves easing the squeeze on US treasuries. Commodities continued to climb, with gold trading above 900 but settling at 852 and oil moving higher to 100 but retracing back to 97.
The key story in the marketplace revolved around the US financial sector, as ailing banks are looking for partners to save their businesses. There was light data out of the Eurozone with the exception of the coordinated capital injection by the global central banks of roughly $150bln. The EurUsd is trading more based on trends in the overall market environment as opposed to fundamental economic data. UK retail sales rose 1.2% vs. the 0.5% decline expected, which was relieving to the BoE. This confirms the theory that tight growth will support lower inflation in the long term, which may enable them to hold rates at current levels.
The VIX traded at its highest levels since 2002, based on heightened volatility across asset classes. The dollar weakened based on pessimism regarding the outcome of the US financial sector. We will have to see a stabilization in risk aversion before the dollar picks up momentum again. We are looking for the EurUsd to stay rangebound between 1.46-1.42 in the near-term.
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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.
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