Daily Forex Snapshots

Dollar Climbs on Continued Oil Weakness

September 03, 2008 11:50 PM CEST

G10 Advancers and Decliners vs USD

	Cad	0.51
	Jpy	0.35
	Chf	0.12
	Dkk	-0.14
	Eur	-0.14
	Aud	-0.32
	Nok	-0.32
	Gbp	-0.37
	Sek	-0.44
	Nzd	-0.50

Global Indexes

Current Level

% Change

DJIA Index	11,505.28	- 0.10
S&P 500 Index	1,275.75	- 0.14
NASDAQ 100 Index	2,348.95	- 0.01
FTSE futures	5,562.50	- 1.20
CAC futures	4,489.00	- 1.17
DAX futures	6,526.50	+ 0.10
SMI Futures	7,294.00	- 0.10

World Markets

Current Level

% Change

Crude wti	108.36	- 1.23
Gold	800.80	- 0.57
Silver	12.87	- 1.53
VIX	21.76	- 1.05
USD Index	78.28	+ 0.28

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

Currency Tech

AUDUSD
R 3: 0.8694
R 2: 0.8586
R 1: 0.8535
CURRENT: 0.8291
S 1: 0.8271
S 2: 0.8173
S 3: 0.8108

GBPJPY
R 3: 200.36
R 2: 198.29
R 1: 194.79
CURRENT: 193.15
S 1: 192.65
S 2: 191.67
S 3: 190.52

USDSGD
R 3: 1.4643
R 2: 1.4542
R 1: 1.4353
CURRENT: 1.4374
S 1: 1.4116
S 2: 1.4078
S 3: 1.4016

Market Brief

The Usd held its positive momentum in today’s trading session based on lower oil prices. The EurUsd declined 40 pips to the high 1.44 level, while the UsdJpy also experienced losses falling to the low 108 price area. The GbpUsd dropped 70 pips, trading with a 1.77 handle as the currency reflects the deteriorating economic condition of the region. Equity markets traded lower throughout Europe, and mostly flat in the US. Commodity stocks suffered the brunt of today’s losses as price expectations on raw materials declined with recent activity in the market. Oil traded slightly lower at 109, with gold and silver falling as well at 801 and 12.91 respectively. Bond yields retracted, driving prices higher lending to the notion of a “flight to quality” assets among large investors.

Some of the major macro-movements in the markets are becoming increasingly more evident in the currency markets. Our strategy desk holds a bullish view on the Usd based on the weakening economic environment in Europe and Asia. We are looking for levels near 1.43 in the near-term for EurUsd trading based primarily on the -0.2% GDP figure reported earlier today, which confirms the notion of declining growth in the region. Consumer confidence in the UK came in slightly better than expected, but the reading was not strong enough to lift the cable from recent levels. The GbpUsd is likely to remain within a range of 1.81-1.78, with a trend to the downside due to our projections for further turmoil in the UK economy.

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Asian Session - Australian consumers cut back on continued recession fears

September 03, 2008 9:19 AM CEST

G10 Advancers and Decliners vs USD

	JPY	-0.13
	CAD	-0.25
	CHF	-0.4
	DKK	-0.56
	EUR	-0.56
	GBP	-0.58
	NOK	-0.59
	SEK	-0.62
	AUD	-1.33
	NZD	-1.75

Global Indexes

Current Level

% Change

Nikkei 225 Index	12689	+ 0.64
Hang Seng Index	20657	- 1.83
Shanghai Index	2278	- 1.13
DAX futures	6591	+ 1.39
CAC futures	4555	+ 1.50
Nasdaq futures	1859	- 1.24
DJIA futures	11492	- 0.16

World Markets

Current Level

% Change

Gold	799.41	- 0.78
Silver	12.95	- 0.92
VIX	21.99	+ 6.49
Crude wti	109.24	- 0.43
USD Index	78.48	+ 0.54

Todays Calender

Estimates

Country / GMT

Euro Zone GDP	-0.2%	-0.2%	EUR / 09:00
Euro Zone Retail Sales	-0.1%	-0.6%	EUR / 09:00
Bank of Canada Rate decision	3.00%	3.00%	CAD / 13:00

Currency Tech

Market Brief

EURUSD traded into sub 1.45 territory in yesterday's session as the dollar index rose on the back of easing commodity demand. Traders unwound their hedged positions after Hurricane Gustav fears faded. In Asian trading EURUSD initially dropped to 1.4414, before regaining to 1.4450 in staircase fashion.

The USDJPY steadily rose from Asian opening to near 109.00 levels. Japanese currency holding it's ground in relatively bearish market sentiment as Prime Minister Fukuda resigns and economy continues to be under-pressure. Nikkei ended last trading session 1.8% lower, despite an initial rise as investors considered the possibility that his successor might be able to push through some much needed changes.

Asian markets in general are under pressure as global sentiment remains pessimistic. Despite this Korean Development bank proposed to buy a 25% stake in Lehman brothers and another Chinese bank has shown interest. European Central Bank and Bank of England decide on rates tomorrow, investors cut back on positions before policy decisions. European equities trading higher yesterday as lower Euro helping exports, this bearish trend helped by European spending report expected to show continued consumer pessimism.

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