Daily Forex Snapshots

US Session: Equities Close Flat While Commodities Charge Forward on Weaker Dollar

August 24, 2009 11:33 PM CEST

G10 Advancers and Decliners vs USD

	Nzd	0.50
	Aud	0.48
	Cad	0.44
	Dkk	-0.21
	Eur	-0.22
	Jpy	-0.23
	Nok	-0.36
	Chf	-0.38
	Sek	-0.39
	Gbp	-0.52

Global Indexes

Current Level

% Change

DJIA Index	9,494.32	- 0.12
S&P 500 Index	1,023.53	- 0.25
NASDAQ 100 Index	2,013.43	- 0.37
Nikkei 225 Futures	10,570.00	+ 0.18
Hang Seng Futures	20,542.00	+ 1.96
FTSE futures	4,858.50	+ 0.37
SMI Futures	6,192.00	+ 0.83

World Markets

Current Level

% Change

Crude wti	74.31	+ 0.57
Gold	942.38	- 1.20
Silver	14.16	- 0.16
USD Index	78.26	+ 0.28
VIX	25.30	+ 1.16

Todays Calender

Estimates

Country / GMT

No Major Events Scheduled

Currency Tech

EURUSD
R 2: 1.4380
R 1: 1.4338
CURRENT: 1.4307
S 1: 1.4240
S 2: 1.4180

GBPUSD
R 1: 1.6620
R 1: 1.6550
CURRENT: 1.6458
S 1: 1.6435
S 2: 1.6380

USDJPY
R 2: 96.60
R 1: 95.40
CURRENT: 94.80
S 1: 93.85
S 2: 93.00

USDCHF
R 2: 1.0692
R 1: 1.0632
CURRENT: 1.0622
S 1: 1.0556
S 2: 1.0452

Market Brief

The dollar was mixed against the majors as price action earlier in the session was suppressed on light volume and lack of direction regarding the global economy. The EurUsd was weaker by 24pips finding support at 1.43, while the GbpUsd fell 92pips to the low range of 1.64. Yen crosses were more consistent with the rally in commodities and reflect the slightly improved bias regarding oil and base metals. Gold decreased 1.29% to $941oz, a significant move considering the long-term level of support at $950oz for Traders looking for bullish signals to stay long the precious metal. Equity markets in the US ended the mostly unchanged from the previous session, with the Dow slightly above 9500 an additional sign that investors hold reservations regarding current market conditions. Bond prices rallied with strong buying across the curve compressing yields of 2’s and 10’s to 1.01% and 3.47% respectively.

The aftermath of the global economic stimulus efforts may become an obstacle for bullish investors. Fed Chairman Bernanke stated that we are “beginning to emerge” from the recession, but once quantitative easing ends and monetary policy mechanisms are tightened the lack of excess liquidity may result in a backstop for growth in broader markets. Tightening in monetary policy would prove positive for a currency, but the challenge is determining which regions will be able to recover at a more timely pace. The Eurozone has shown anecdotes of positivity with German and French GDP figures improving, and aggressive statements from ECB members declaring that the recession is ending. Currencies like the Yen who are known for their sustained low interest rate environment will be likely to suffer when central banks tighten rates, and reemergence in the carry trade is likely to occur.

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.

European Session: Growth-Side Improves throughout Eurozone Supporting Broadbased Recovery Theme

August 24, 2009 7:59 PM CEST

G10 Advancers and Decliners vs USD

	Aud	0.84
	Nzd	0.61
	Cad	0.58
	Gbp	0.07
	Nok	0.06
	Eur	0.01
	Dkk	0.01
	Sek	-0.14
	Chf	-0.19
	Jpy	-0.42

Global Indexes

Current Level

% Change

DJIA futures	9511.00	+ 0.23
S&P future	1028.00	+ 0.27
Nasdaq futures	1637.75	+ 0.14
FTSE futures	4869.00	+ 0.59
CAC futures	3631.00	+ 0.60
DAX futures	5496.00	+ 0.87
SMI Futures	6159.00	+ 0.29

World Markets

Current Level

% Change

Crude wti	74.07	+ 0.24
Gold	953.71	- 0.02
Silver	14.44	+ 1.80
USD Index	78.10	+ 0.07
VIX	25.01	- 0.32

Todays Calender

Estimates

Country / GMT

Currency Tech

Market Brief

Financial Markets have begun the week on a positive note with continuing last week’s rally in global equity indexes, the euphoria may be short-lived as Traders and Investors remain sensitive to event risk. The dollar is slightly lower versus the majors with the commodity based currencies being the primary beneficiaries. The Aud is higher by 79pips to .8426, while the Cad rallied 76pips to 1.0731, which is consistent the bullish bias towards oil and base metals. Crude oil rose nearly 1.00% to $74bbl, while gold is mostly unchanged at $955oz. US equity futures are pointing to a higher open with the September futures contract for the Dow higher by 36pts at 9526. European stock indexes are stronger across the board with the DAX and FTSE leading the way posting gains of 1% and 0.7% respectively. On the fixed income side, the yield curve remains mostly unchanged with the 2yr off 1bp to 1.082% and the 10yr rate up 3bps to 3.593%.

The Eurozone reported an increase in industrial new orders, which grew by 3.1% surpassing expectations of 1.8%.k There were small revisions of the prior reading, but the general trend is proving positive on a month over month basis. The core components of the increase in new orders were in capital goods and consumer goods, which support inflationary data and point to further progress towards a recover, at least in GDP growth. FX Traders will look for the German Ifo survey to follow the recent pattern of stronger economic fundamentals, but a deviation from this trend may prove detrimental for a rally in the Euro hence the sideways price action.

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.