Daily Forex Snapshots

US Session: US Equities Settle Above the 9000 Level UK GDP Drop Hurts Sterling

July 24, 2009 11:27 PM CEST

G10 Advancers and Decliners vs USD

	Nok	0.90
	Aud	0.62
	Sek	0.60
	Dkk	0.51
	Eur	0.51
	Cad	0.47
	Chf	0.35
	Nzd	0.31
	Jpy	0.21
	Gbp	-0.22

Global Indexes

Current Level

% Change

DJIA Index	9,093.24	+ 0.26
S&P 500 Index	979.26	+ 0.30
NASDAQ 100 Index	1,965.96	- 0.39
FTSE futures	4,571.00	+ 0.87
SMI Futures	5,754.00	+ 0.07

World Markets

Current Level

% Change

Crude wti	68.02	+ 1.28
Gold	951.60	+ 0.26
Silver	13.90	+ 1.24
USD Index	78.75	- 0.32

Todays Calender

Estimates

Country / GMT

Currency Tech

AUDUSD
R 2: 0.8265
R 1: 0.8235
CURRENT: 0.8197
S 1: 0.8090
S 2: 0.7927

EURJPY
R 2: 136.90
R 1: 134.80
CURRENT: 134.31
S 1: 132.10
S 2: 131.60

USDCAD
R 2: 1.1350
R 1: 1.1225
CURRENT: 1.0999
S 1: 1.0930
S 2: 1.0785

USDMXN
R 2: 13.645
R 1: 13.415
CURRENT: 13.206
S 1: 13.185
S 2: 13.060

Market Brief

The dollar tumbled against most majors with the exception of the pound as the UK economy contracted, spurring risk aversion and profit-taking in the cable. The EurUsd rose 54pips or 0.38% to 1.42 in light of expectation-beating IFO numbers from Europe, and an improvement in manufacturing and services. The GbpUsd slid 64pips or 0.38% to 1.64 due to the GDP surprise. The UsdJpy fell 31pips or 0.33% to 94.7 amid broad dollar weakness in the market. Equity markets were a fraction higher but remained largely steady after previous session’s rally, with the Dow up 25pts or 0.2% and the FTSE edging up 66pts or 1.47%. 10yr yield dropped 0.04 to 3.66%. Commodity prices were mixed, with oil up $0.77 or 1.15% to $67bbl and gold down $3.2 or 0.34% to $951oz.

After an astonishing rally beyond 9,000 yesterday, the dow jones opened lower on poor earnings reports from American Express and Microsoft. Later in the session equities turned higher as Black & Decker and Helthways released better-than-expected Q2 earnings. Further support came from Federal Reserve Chairman Ben Bernanke’s comments to the house financial services committee that the central bank would begin winding down its QE measures in light of the improving economy. Before the market close, equities and the dollar fell flat as tech shares in the S&P declined -1% and the July consumer sentiment index, although in line with expectations, was the lowest in five months at 66. Positive news in the euro zone sent the 16 nation currency rising .6% to 1.422 after Markit Economics reported the composite index of manufacturing and services industries rose to 46.8 in July versus 45.3 expected. In Germany, the Ifo institute’s business climate index increased to 87.3 versus an 86.5 expected. Contrastingly, terrible news in the U.K. drove the sterling down against a basket of currencies as GDP in the distressed region was reported to have contracted .8% versus .3% expected. Prime Minister Gordon Brown is preparing a report to examine what monetary and fiscal policy actions can be taken to spur economic growth and mend currency reserve imbalances. The Canadian dollar rose to C$1.0792, the highest level since June. The rise in equities sent WTI crude prices over $68bbl.

Risk Disclaimer:

Although every investment involves some degree of risk, the risk of loss in trading off‐exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make an informed decision prior to investing. The material presented here is not to be construed as trading advice or strategy. ACMNY makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change.

US Session: Positive Housing and Earnings Data Boosts Investor Confidence

July 24, 2009 12:09 AM CEST

G10 Advancers and Decliners vs USD

	Aud	0.15
	Nzd	0.08
	Dkk	0.07
	Eur	0.07
	Gbp	0.05
	Nok	0.05
	Sek	0.04
	Chf	0.02
	Jpy	-0.03
	Cad	-0.11

Global Indexes

Current Level

% Change

DJIA Index	9,069.29	+ 2.12
S&P 500 Index	976.29	+ 2.33
NASDAQ 100 Index	1,973.60	+ 2.45
Nikkei 225 Futures	9,810.00	+ 0.31
Hang Seng Futures	19,799.00	+ 0.00
FTSE futures	4,531.50	+ 1.66
SMI Futures	5,750.00	+ 2.26

World Markets

Current Level

% Change

Crude wti	67.16	+ 2.69
Gold	948.15	- 0.11
Silver	13.73	+ 0.00
USD Index	79.01	+ 0.32
VIX	23.43	- 0.17

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

Currency Tech

Market Brief

Risk appetite gained a boost from better-than-expected home sales and a BoC’s report that the recession was over in Canada, spurring a rally in the equity markets as the Dow rose above the 9000 level. The EurUsd traded sideways and finished 11pips lower to 1.41. The GbpUsd rose steadily in light of the better retail sales number, which rose 1.2% vs 0.4% forecasted, sending the pound 30pips higher to 1.64. The UsdJpy climbed 144pips to 95.0, continuing a two-day winning streak for the dollar. Yields steepened across the curve as resurgence in risk appetite prompted traders to steer away from treasuries; the 10yr yield rose 0.137 to 3.68%. Commodity prices were mixed, with oil rising $1.78 or 2.7% to $67bbl and gold edging down $3 or 0.3% to $950oz

The early session saw a rise in equity futures as the dollar came under pressure in anticipation of jobless claims which came out higher at 554k. Despite investor optimism, the dollar index briefly turned positive as bellwether McDonalds reported poor earnings. Midday, the dollar fell to $1.4291 against the euro as equities turned higher on a report showing June home sales rose more than expected to $4.89mln, lifting hope that the housing sector and consequently the economy may be on the road to recovery. Earnings reports from eBay, Ford, and 3M were all upbeat; combined with housing data, the dow jones industrial average rose above 9000 points for the first time in six months. The yen saw an .8% decline against the euro to 134.27 after Japanese Finance Minister reported that exports had slowed to 35.7% in June from 40% in May. Dissimilarly, the Eurozone deficit narrowed to -1.2bln in May from -6.1bln in April. In the U.K, despite a rising current account deficit, sterling traded near one month highs as retail sales rose 1.2% m/m last month versus .3% expected. The British Bankers Association announced a 4,073 increase in June monthly mortgage approvals. In Canada, the loonie appreciated 1.4% to C$1.0841 as a BoC report forecasted a 1.3% increase in annual output and suggested the recession would end this quarter. The central bank has revised its forecast for economic contraction in 2009 to 2.3% from 3% in April. Despite low demand, NYMEX September crude futures rose $1.61bbl to surpass $67bbl as investor confidence was supported by positive equities and economic data.

Risk Disclaimer:

Although every investment involves some degree of risk, the risk of loss in trading off‐exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make an informed decision prior to investing. The material presented here is not to be construed as trading advice or strategy. ACMNY makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change.

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.