Daily Forex Snapshots

US Session: Bets are on that the Cable will Slide and Dollar Strengh Returns

January 22, 2009 3:21 PM CET

G10 Advancers and Decliners vs USD

	Jpy	1.45
	Chf	-0.31
	Eur	-0.69
	Dkk	-0.69
	Nzd	-1.02
	Cad	-1.28
	Aud	-1.32
	Nok	-1.37
	Sek	-1.37
	Gbp	-1.37

Global Indexes

Current Level

% Change

DJIA futures	8,005.00	+ 0.76
S&P future	814.30	+ 1.03
Nasdaq futures	1,154.75	+ 0.63
FTSE futures	4,042.00	+ 0.25
CAC futures	2,920.00	- 0.21
DAX futures	4,291.00	+ 1.19
SMI Futures	5,265.00	+ 0.36

World Markets

Current Level

% Change

Crude wti	42.41	+ 3.82
Gold	853.19	- 0.47
Silver	11.31	+ 1.16
USD Index	86.18	- 0.04
VIX	50.57	- 10.73

Todays Calender

Estimates

Country / GMT

01/22 House Price Index

-1.2%

-1.1%

US/23:00

Currency Tech

AUDUSD
R 3: 0.7048
R 2: 0.6841
R 1: 0.6684
CURRENT: 0.6527
S 1: 0.6457
S 2: 0.6294
S 3: 0.6077

EURJPY
R 3: 125.28
R 2: 122.17
R 1: 118.82
CURRENT: 116.41
S 1: 115.30
S 2: 114.41
S 3: 113.64

USDSGD
R 3: 1.5339
R 2: 1.5265
R 1: 1.5120
CURRENT: 1.5041
S 1. 1.4956
S 2: 1.4805
S 3: 1.4759

Market Brief

The dollar strength resumed pressuring major currency pairs with the exception of the Yen. The EurUsd dropped roughly 80pips to the mid range of 1.29, while the UsdJpy declined over 100pips to the low 88 price area. The GbpUsd has been a centerpiece in FX trading this week being the largest mover this week, it is down 150pips testing 1.38 as a level of support. Equity markets are pointing to a lower open in the US after strong rally last night of 279pts, while European stock indexes are mostly flat. Commodities are weaker across the board in energy and metals sectors, oil is currently at $43bbl and gold stands at $849oz. Bond yields retracted, with the 2yr rate seeing the most action lower by 6bps at .712%.

Rumors are swirling regarding the possible downgrade of UK credit, and is a major contributor to the pattern of extreme risk aversion in the marketplace. The cable started to recover last night, but has since dropped back to levels below 1.40. The Sterling has garnered strong attention fro the public, France's Finance Minister suggested that the BoE should do more in regards to the currency. In the Eurozone, industrial orders failed to meet expectations coming at -26.2% vs. the consensus figure of -20%. This is more evidence of the worsening economic environment which will most likely be reflected in the currency price.

US economic data continued its trend of weakness, with retail sales down 2.4% vs. 2.0% expected. Housing starts were also lower at 550k vs. the estimate of 605k, clearly the new adminstration has serious issues to address in the housing sector and specifically with the consumer. Initial Jobless claims nearing 600k, does not paint an optimistic picture for the US economy and a resolution to the employment situation will be a critical piece to recovery.

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