Daily Forex Snapshots

Asian Session – US Initiative Fails to Invigorate

February 11, 2009 10:32 AM CET

G10 Advancers and Decliners vs USD

	JPY	0.92
	CHF	0.23
	DKK	-0.01
	EUR	-0.02
	NOK	-0.16
	AUD	-0.68
	CAD	-0.70
	NZD	-1.36
	GBP	-1.38
	SEK	-1.46

Global Indexes

Current Level

% Change

Nikkei 225 Index	7,945.94	- 0.29
Hang Seng Index	13,539.21	- 2.46
Shanghai Index	2,260.82	- 0.19
FTSE 100 Index	4,207.14	- 0.14
DAX Index	4,500.16	- 0.11
SMI Index	5,106.06	- 0.75
DJIA futures	7,900.00	+ 0.27

World Markets

Current Level

% Change

Gold	917.50	+ 0.26
Silver	13.30	+ 1.10
VIX	46.67	+ 6.93
Crude wti	38.12	+ 1.51
USD Index	85.43	- 0.44

Todays Calender

Estimates

Country / GMT

Sweden: Riksbank: Interest rate announcement, % Fe	1.25%	2.00%	SZ / 8.30
BoE Inflation report published	--	--	UK / 9.30
Claimant count unemployment, change K Jan	85.0	77.9	UK / 9.30
Average earnings, % 3m/y Dec	3.0	3.1	UK / 9.30
Core average earnings, % 3m/y Dec	3.5	3.6	UK / 9.30
Int'l Merchandise Trade, C$bn Dec	0.8	1.3	CA / 13.30
Trade balance, $ bn Dec	-37.0	-40.4	US / 13.30
FRB of Chicago President Evans (FOMC voter) speaks	--	--	US / 18.00
Executive Board member Tupel Gugerell-speaks at an	--	--	EZ / 18.00
Budget balance, $ bn Jan	-75.0	17.8	US / 19.00
ECB Vice-President Papademos speaks at the Annual	--	--	EZ / 21.30

Currency Tech

AUDUSD
R 3: 0.7003
R 2: 0.6849
R 1: 0.6799
CURRENT: 0.6533
S 1: 0.6476
S 2: 0.6355
S 3: 0.6249

EURJPY
R 3: 122.17
R 2: 121.57
R 1: 120.01
CURRENT: 116.51
S 1: 115.71
S 2: 114.22
S 3: 113.15

USDSGD
R 3: 1.5338
R 2: 1.5258
R 1: 1.5178
CURRENT: 1.5056
S 1: 1.4935
S 2: 1.4904
S 3: 1.4805

Market Brief

Risk appetite dropped sharply due primarily to the lack of specifics in the US Treasury's bank bailout package, now titled "The Financial Stability Plan" and provided no real positive surprises. Usd & Jpy outperformed the rest of the G10 currencies, with the hardest hit being the Sterling. In addition to the sell off of banking shares in light of the US plan discussed above, Treasury select committee hearings cast further bad light on the UK banking system.

Markets responded gloomily to Treasury Secretary Geithner's new Financial Stability Plan, with stock market broadly lower (S&P down 4.95%) while risky currencies were sold off. Interestingly, the financial and energy sectors were the two hardest hit, as a pure reflections of investors concern surrounding the global economic slowdown and the financial crisis. The Financial Stability Plan combines the Treasury, the Fed and the FDIC to "attack the credit crisis on all fronts." But, while sounding proactive and aggressive, the lack of specifics leaves us feeling unconvinced.

Yesterday, ECB member Axel Weber seemed to shift his rhetoric sharply stating the ECB should begin cutting rates aggressively in order to stave off a further economic deterioration. And we are beginning to hear other ECB members starting to sing the same tune. ECB member Quaden stated the ECB was ready to ease rates in March and a majority of the members had no objections to further loosing of monetary policy. While the market shrugged off these important remarks, should the noise increase we should see a real effect on Euro pricing.

Sweden’s Riksbank cut 100bp (vs 75bp exp) to 2.00%
Australia’s Westpac feb. Consumer confidence fell -4.6% vs -2.2% exp. Home loans dec. rose 6.4% vs. 1.3% exp.
German Consumer Price Index janF m/m was inline at -0.5% vs. -0.5% exp, y/y 0.9% vs. 0.9% exp

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.