FXstreet.com

0

0

Asain Session: China Comments on Reserve System

Fri, Jul 10 2009, 11:25 GMT
by Peter Rosentreich

ACM - Advanced Currency Markets


Market Brief

The wave like pattern in risk appetite is a testament to the lack of constant drivers and summer trading. Yesterday saw a recovery in risky assets and today risk sentiment is on the decline. Asian equity markets closed lower and European markets are red across the board. Commodity and commodity currencies are trending lower with crude prices slipping below $60bll (first time since may) and AUDUSD trading down to 0.7765. As stated yesterday we are carefully monitoring both the EURCHF and USDJPY since both are at levels that will make there respective officials very uncomfortable. In fact, comments by SNB's Roth yesterday suggest that the central bank is still steadfast to its FX intervention strategy and the subsequent spike in EURCHF implies traders are extremely jumpy. The BoE unexpectedly kept its asset purchase program unchanged opting instead to finish current allocation while monitoring economic and credit market indicators. We believe that at the next monetary policy meeting an increase in the QE program is very likely and is setting the stage for a sterling fall. The G8 program ended today with no real fireworks. Chinese representative State Councelor Dai Bingguo provided the only noteworthy comment saying "we should have a better system for reserve currency issuance and regulation so that we can maintain relative stability of major reserve currencies." However these words were caution since it failed to mention the USD by name and failed to register a response in the markets. We expect the USD to continue to rally and with a light calendar and thin trading volumes will keep overall FX trading choppy.

Snap Shot

Global Indexes Current Level % Change
Nikkei 225 Index9,287.28-0.04
Hang Seng Index17,706.44-0.47
Shanghai Index3,113.93-0.29
FTSE 100 Index4,136.78-0.52
DAX Index4,611.62-0.39
SMI Index5,279.84-0.48
DJIA futures8,101.00-0.4

World Markets Current Level % Change
Gold910.88-0.16
Silver12.84-0.23
VIX29.78-4.85
Crude wti59.73-1.12
USD Index80.330.54

Todays Calender Estimates Previous Country / GMT
Global: G8 meeting to be held in Italy (final day)------
Producer input prices, % m/m (y/y) Jun0.8, -12.30.4 ,-9.4GBP / 08.30
Producer core output prices, % m/m (y/y) Jun0.2 (1.1)0.2 (1.2)GBP / 08.30
Producer output prices, % m/m (y/y) Jun0.3 (-0.7)0.4 (-0.3)GBP / 08.30
Trade balance, $ bn May-30-29.2USD / 12.30
Import prices, % m/m (y/y) Jun2.2 ,-18.31.3,-17.6USD / 12.30
Non-petroleum import prices, % m/m (y/y) Jun--0.2 (-5.8)USD / 12.30
Michigan consumer sentiment Jul-P7170.8USD / 13.55


Currency Tech

AUDUSD
R 2: 0.8155
R 1: 0.8039
CURRENT: 0.7762
S 1: 0.7725
S 2: 0.7630

EURJPY
R 2: 134.80
R 1: 132.80
CURRENT: 128.99
S 1: 126.98
S 2: 124.40

USDCAD
R 2: 1.1815
R 1: 1.1725
CURRENT: 1.1640
S 1: 1.1545
S 2: 1.1420

  • S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot


Archive

Advanced Currency Markets, S.A.  | 50 Rue du Rhone CH-1204 Geneva
http://www.ac-markets.com | support@ac-markets.com

Legal disclaimer and risk disclosure

This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Related reports

Interest Rate Monitor - Bonds fail to make headway on latest banking crisis by Interactive Brokers LLC
Tue, Nov 24 2009, 14:36 GMT

Market Thoughts - 24/11/2009 - The Current Market Sentiment 2 by FX Recommends
Tue, Nov 24 2009, 13:51 GMT

London Gold Market Report by BullionVault.com
Tue, Nov 24 2009, 13:32 GMT

FX View - Risk aversion takes a back seat by Interactive Brokers LLC
Tue, Nov 24 2009, 13:15 GMT

Technical Major Currencies Report - Technical Major Currencies MiddayReport by ecPulse.com
Tue, Nov 24 2009, 13:15 GMT

audusd, usd, china, g8, boe, usdcad, eurchf

View All

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
City Credit Capital (UK) Limited
Contact the broker/FDM
Open a demo account
Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
Alpari (US), LLC
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.