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Currency Tech |
AUDUSD
R 3: 0.8583
R 2: 0.8520
R 1: 0.8378
CURRENT: 0.8169
S 1: 0.7900
S 2: 0.7800
S 3: 0.7703
EURJPY
R 3: 139.75
R 2: 138.57
R 1: 137.40
CURRENT: 136.35
S 1: 133.90
S 2: 131.50
S 3: 130.73
USDSGD
R 3: 1.4748
R 2: 1.4665
R 1: 1.4580
CURRENT: 1.4395
S 1: 1.4320
S 2: 1.4270
S 3: 1.4165
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Market Brief |
The dollar fell against the euro as the ECB shed a more positive light on the euro zone’s economy for the second half of the year. The EurUsd crept higher at $1.4160 after seeing a 100pt-swing in early session. The GbpUsd continued to edge down with the British pound dropped to $1.6118, compared with $1.6297 on Wednesday. Equity markets in U.S. and Europe remained flat, with the Dow and the FTSE up by 23pts and 0.37pts, or 0.28% and 0.02% respectively. The 10-year Treasury climbed for a second day to 3.64% as weak economic data casted doubts over a recovery. Commodities rebounded from yesterday’s decline, with Gold advanced by $12 to $976oz, while oil rose to $68, paring loss from last session’s dip.
The BOE kept its key rate at 0.5% and planed to continue the expected 125 billion pound QE. Stimulating monetary policy combined with rumors that Brown has resigned has caused the GBP to drop sharply. However, the sterling is quite likely to regain its shine from the UK’s better-than-expected economic data, mainly from the services sector. The ECB has kept its key rate at record low of 1%, causing the euro to drop against the dollar, but only to rebound later due to inflation projection and chairman Trichet’s consistent predictions on the bloc’s economy. The BOC decided to keep its interest rate at .25%. Comments by the BOC on its currency’s rally being a “threat to the economy” offset previous rally in commodity prices and investor confidence, causing the CAD to drop by 1%. The dollar rallied slightly following central banks’ decisions. The Dollar Indexed climbed more than 1% today. US job data will be announced tomorrow which was projected at 9.2%, highest level in decades. Fitch ratings reaffirmed US debt’s AAA level; combined with weak economic data and confidence from Asian countries will keep dollar away from its year low in short term. In longer term, however, a weakening dollar is still the general consensus.
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