Daily Forex Snapshots

US Session: Yen Crosses Surge on Revival in Risk Appetite

July 30, 2009 11:18 PM CEST

G10 Advancers and Decliners vs USD

	Sek	1.13
	Aud	1.00
	Gbp	0.70
	Cad	0.55
	Nok	0.42
	Eur	0.18
	Dkk	0.17
	Chf	-0.05
	Jpy	-0.60
	Nzd	-0.79

Global Indexes

Current Level

% Change

DJIA Index	9,154.46	+ 0.92
S&P 500 Index	986.75	+ 1.19
NASDAQ 100 Index	1,984.30	+ 0.84
Nikkei 225 Futures	10,280.00	+ 0.77
Hang Seng Futures	20,200.00	+ 0.00
FTSE futures	4,606.50	+ 1.94
SMI Futures	5,940.00	+ 2.66

World Markets

Current Level

% Change

Crude wti	66.55	+ 5.05
Gold	934.40	+ 0.00
Silver	13.48	+ 1.28
USD Index	79.31	- 0.26
VIX	25.40	- 0.82

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

Currency Tech

AUDUSD
R 2: 0.8520
R 1: 0.8379
CURRENT: 0.8228
S 1: 0.8090
S 2: 0.7925

USDCAD
R 2: 1.1225
R 1: 1.1010
CURRENT: 1.0865
S 1: 1.0750
S 2: 1.0545

EURJPY
R 2: 136.90
R 1: 136.10
CURRENT: 133.83
S 1: 132.10
S 2: 131.60

USDMXN
R 2: 13.645
R 1: 13.415
CURRENT: 13.222
S 1: 13.135
S 2: 13.059

Market Brief

Risk appetite returned to the market overnight following the release of positive data in Japanese manufacturing. The dollar fell against most majors as investors grew optimistic. The EurUsd gained 36pts after finding support at 1.40, while the UsdJpy gained 60pips to the upper range of 95. The GbpUsd was one of the strongest movers after .80% momentum drove the cable near 1.65 as a major point of resistance. Equity markets rose in the U.S. and Europe, with the Dow up by 1.82% or 165.38pts and the FTSE higher by 1.85% or 84.08pts. The yield curve steepened slightly with 10 and 30 year bonds positive by .039 and .020. Commodities were up across the board with oil finding support at $65bbl and gold moving above $936oz.

The risk rally returned to financial markets today as the dollar and yen saw a snap in their three day uptrend following a positive Japanese manufacturing report released overnight and better equities. Factory output in Japan rose 2.4% in June from the previous month, sending the yen up .42% to 95.46 and the dollar index to a low of 79.18. The dollar rose briefly as US jobless claims came in slightly above expectations at 584,000 versus 554,000, but then continued to fall as the Dow rallied as much as 175pts. Positive news in the Eurozone began with a rise in the executive and consumer sentiment index which reached 76, a high not seen since November of last year. The unemployment rate in Germany was .1% lower arriving at 8.3, and the change in unemployment was better-than-expected coming in at -6.0 versus 45.0 forecasted. Although investor sentiment was slightly offset by an employment drop to -36, labor force related news sent the euro up above 1.40. In the U.K., the pound rose .8% above 1.65 as home prices increased for a third month by 1.3%. With yesterday’s mortgage approvals hitting 14 months high’s, there seems to be more support behind the theory that the housing market has bottomed. The New Zealand kiwi fell the most in three weeks after the central bank decided to keep its primary interest rate unchanged at 2.5%. By contrast, the Canadian dollar rose as the TSX rallied 194pts and Canadian industrial price index rose .1% after a 1.1% drop in May and NYMEX WTI crude is trading near $67bbl with September futures up 5% at $6.50bbl.

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