Market Brief
The Yen weakened in yesterday’s trading, the USDJPY pair trading up from 89.30 levels as high as 92.25 – a 3.28% rise and the weakest since Jan 8th. Efforts by the BoJ to stabilize its economy and reports that it would buy financial stocks through 2010 have renewed short-term risk seeking, triggering stops. Japan’s economy which relies predominantly on exports has been struggling with its strong currency. Some observers predict the U.S and other economies may make an issue of Japan’s intervention like actions of late with regards to their monetary and fiscal policy.
Asian stocks are on the rise as sentiment improves - despite Toyota announcing a first ever loss, The U.S Treasury department announces a comprehensive financial-recovery plan will be announced. The U.S continues to mull the HIA (Homeland Investment Act) which would bolster the greenback for some months to come. The dollar gave way to 8 of 10 currencies we monitor yesterday as initial jobless claims came out at -626K (the lowest level since 1982 recession) and factory orders were also down -3.9%. All eyes are riveted on the NFP’s today that are expected to decline by -540K (prev. -524K).
Despite the substantial moves on the part of the Yen yesterday, the markets gave it all back this morning – testament to the frailty of sentiment induced moves. The technicals show that despite yesterdays bounce on the part of the dollar with regards to the Yen, the pair continues to trade in a broad downward channel, 1 year ago the pair was in the 106 – 108 range. Eye on NFP’s today – despite expected large decline in Public sector jobs a number in line could be met with clemency and bolster the Dollar as we ride a wave of positive sentiment.
| Global indexes | Current level | % Change |
| Nikkei 225 Index | 8076.62 | + 1.60 |
| Hang Seng Index | 13429 | + 1.90 |
| Shanghai Index | 2181.2 | + 3.96 |
| FTSE 100 Index | 4228.93 | + 0.01 |
| DAX Index | 4510.5 | + 0.39 |
| DJIA futures | 7978 | - 0.20 |
| Nasdaq futures | 1233.5 | - 0.08 |
| World markets | Current level | % Change | |
| Gold | 916.2 | + 0.18 | |
| Silver | 12.91 | + 0.39 | |
| VIX | 43.73 | - 0.27 | |
| Crude wti | 40.93 | - 0.58 | |
| USD Index | 86.18 | + 0.15 |
| Todays calender | Estimates | Previous | Country / GMT |
| GBP PPI (MoM) Input | 0.5% | -2.0% | GBP / 09:30 |
| GBP PPI (YoY) Iput | 2.0% | 4.3% | GBP / 09:30 |
| PPI (MoM) Output | -0.1% | 0.0% | GBP / 09:30 |
| PPI (YoY) Output | 3.4% | 4.7% | GBP / 09:30 |
| CAD Change in Employment (JAN) | -40K | -20.4K | CAD / 12:00 |
| CAD Unemployment Rate (JAN) | 6.8% | 6.6% | CAD / 12:00 |
| USD Change in Non-Farm Payrolls (JAN) | -540K | -524K | USD / 13:30 |
| USD Unemployment Rate | 7.5% | 7.2% | USD / 13:30 |
Currency Tech
AUDUSD
R 3: 0.6844
R 2: 0.6732
R 1: 0.6609
CURRENT: 0.6593
S 1: 0.6546
S 2: 0.6077
S 3: 0.6011
EURJPY
R 3: 122.17
R 2: 119.56
R 1: 117.25
CURRENT: 116.94
S 1: 115.70
S 2: 113.15
S 3: 112.12
USDSGD
R 3: 1.5312
R 2: 1.5249
R 1: 1.5178
CURRENT: 1.5042
S 1: 1.5014
S 2: 1.4924
S 3: 1.4809
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
