Market Brief
The Usd was stronger across the board in the Asian Session, as US congressional leaders reached an agreement over the weekend. The EurUsd fell from 1.4636 to 1.4396 (through the 1.4505 directional trigger), while the UsdJpy trader higher to 106.96 from 105.68 session's lows. The GbpUsd slipped to 1.8181 from 1.8440 and Jpy fueled carry trades came under selling pressure, with the AudJpy dropping to 87.35. Despite the positive development in the financial markets, Asian equity indexes are trading lower, with the Hang Seng leading losers -2.66%. European stock markets are poised to follow Asia lower. Crude prices are stable around the $105.00bll level and Gold at $874.00. VIX is still well elevated at 34, reflecting the nervousness in the markets.
Reports are that a deal has been reached and suggest the House of Representatives will votes as early as today, which will send the bill to the Senate by Wednesday. The details of the bill, which have been released, differ from the original Paulson Plan, with the greatest variation in the inclusion of congressional oversight. The plan in breaks up the authorized $700bn, with $250bn to be issued immediately when legislation is passed, $100bn on presidential review and $350bn subjected to congressional review. In addition, the proposal states that firms that seek help will limit executive pay and stock warrants will be issued to taxpayers from institutions participating. As predicted, the greenback gained on the positive developments and we expect the currency to continue climbing, especially considering the negative news in both the financial sector and fundamentals in Europe . First, yesterday, the governments of Luxembourg , Holland and Belgium have announced they will inject capital into Fortis (Nationalized) and rumors of additional institutions (European & UK) in trouble are still hitting the wires. The highlight of the week will be the ECB rate decision and while we expect Trichet to hold at 4.25%, both market and economic conditions have weakened considerable
| Global indexes | Current level | % Change |
| Nikkei 225 Index | 11,743.61 | -1.25 |
| Hang Seng Index | 18,118.25 | -3.02 |
| Shanghai Index | 2,293.78 | -0.16 |
| FTSE 100 Index | 5,047.16 | -0.81 |
| CAC 40 Index | 4,133.44 | -0.71 |
| SMI Index | 6,782.78 | -0.48 |
| DJIA futures | 11,013.00 | -1.2 |
| World markets | Current level | % Change |
| Gold | 871.1 | -0.87 |
| Silver | 13.01 | -2.19 |
| VIX | 34.74 | 5.85 |
| Crude wti | 103.7 | -2.98 |
| USD Index | 78.14 | 1.54 |
| Todays calender | Estimates | Previous | Country / GMT |
| EC Economic Sentiment (Sep) | 87.3 | 88.8 | EZ / 9.00 |
| Consumer Confidence (Sep) | -19 | -19 | EZ / 9.00 |
| Personal Income (Aug) | 0.20% | -0.70% | US / 12.30 |
| Personal Spending (Aug) | 0.20% | 0.20% | US / 12.30 |
| PCE Deflator (Aug) | 4.50% | 4.50% | US / 12.30 |
| Core PCE Deflator (Aug) | 0.2%,+2.4% | 0.3%,+2.4% | US / 12.30 |
Currency Tech
AUDUSD
R 3: 0.8520
R 2: 0.8470
R 1: 0.8380
CURRENT: 0.8184
S 1: 0.8240
S 2: 0.8010
S 3: 0.7802
EURJPY
R 3: 156.99
R 2: 156.85
R 1: 155.80
CURRENT: 152.52
S 1: 153.50
S 2: 153.10
S 3. 150.78
USDSGD
R 3: 1.4479
R 2: 1.4375
R 1: 1.4310
CURRENT: 1.4347
S 1: 1.4185
S 2: 1.4055
S 3. 1.4031
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
