Daily Forex Snapshots

Dollar Picks Up as House and Senate Support Fed Bailout

September 25, 2008 8:09 PM CEST

G10 Advancers and Decliners vs USD

	Cad	0.43
	Sek	0.38
	Chf	0.20
	Aud	0.19
	Eur	0.15
	Dkk	0.14
	Nzd	0.07
	Nok	0.01
	Jpy	-0.42
	Gbp	-0.54

Global Indexes

Current Level

% Change

DJIA Index	11,074.63	+ 2.31
S&P 500 Index	1,214.69	+ 2.43
NASDAQ 100 Index	2,200.73	+ 2.09
FTSE futures	5,230.50	+ 1.83
CAC futures	4,230.50	+ 2.47
DAX futures	6,230.00	+ 1.97
SMI Futures	6,975.00	+ 2.20

World Markets

Current Level

% Change

Crude wti	106.68	+ 0.90
Gold	873.90	- 0.99
Silver	13.21	- 0.38
USD Index	76.96	+ 0.22
VIX	33.10	- 5.94

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

Currency Tech

AUDUSD
R 3: 0.8534
R 2: 0.8519
R 1: 0.8469
CURRENT: 0.8361
S 1: 0.8279
S 2: 0.8011
S 3: 0.7802

EURJPY
R 3: 157.76
R 2: 156.99
R 1: 156.84
CURRENT: 155.86
S 1: 153.82
S 2: 150.79
S 3: 149.04

USDSGD
R 3: 1.4478
R 2: 1.4373
R 1: 1.4182
CURRENT: 1.4167
S 1: 1.4054
S 2: 1.3835
S 3: 1.3785

Market Brief

The Usd traded slightly higher against most of the G10 on less volatile prices. The EurUsd is mostly flat off just a couple pips from yesterday's close at the low range of 1.46, while the UsdJpy rose 64 pips to the high 106 price. The GbpUsd reversed recent gains falling over 120 pips to the mid 1.83 level. Equity markets reacted positively to news that legislators may be near the end of approving the Fed's $700bln plan. The Dow is trading higher by over 200pts, with the FTSE following the upward trend in Europe gaining 100pts. Commodities rallied with oil trading higher with a 108 handle, while gold gave up a little ground priced at 876. Bond yields increased substantially with the 2yr up 18bps, and the 10yr up 7bps as investors ease back into risks following the plan. MPC member Sentance

The Gfk consumer confidence survey was slightly higher than expected at 1.8 vs. the estimate of 1.5. This still an exceptionally weak reading, further solidifying the negative outlook on the Eurozone economy. Once the FX market comes back into line with fundamentals the EurUsd should shift to a trading range of 1.43-1.46 with a bias to the downside. MPC member Sentance admitted the UK was in a mild technical recession, but followed up his statement by saying this recession was nothing like the 3 previous ones. This is a major affirmation, as the MPC finally recognizes the current state of the UK economy. The cable is likely to stay weak in the near-term moving to a trading range between 1.81-1.84.

US Economic data was weak with Durable goods orders down 4.5% vs. -1.9% exp. This is a severely negative data point which implies the US will now have to revert back recovering in core growth sectors. Jobless Claims came in at -3.0% vs. -0.5% exp, which will be an obstacle before we see the dollar continue the patter of a longer term rally.

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