Market Brief

The Usd was weaker in the Asian session as risk appetite continues to improve. The EurUsd gapped higher at the open, trading to 1.3581 while the UsdJpy pushed higher from 99.87 to 101.50. Carry trades and EM currencies also benefited from the growing sentiment that we have reached a turning point for the financial crisis and global economy. The NzdJpy traded up to 60.29, while the UsdSgd traded down to 1.4987 (markets are anticipating that the MAS will widen the Sgd trading band this week). Crude is holding above the $50bll handle, while Gold continued to decline. Equity markets are setting up for a solid day following Asia lead (Hang Seng up 2.19%). Last week, the markets received some positive news in the G20’s $1.1trn commitment and revision in mark-to-market accounting guidelines. However, what can't get lost in the media hype is the massive decline in NFP which highlights the true risk to the US / global economy. In addition we suspect that much of March’s historic rally was based on short covering and doesn’t represent investor’s search of value. We expect the Usd and Jpy to come under pressure this week as there is little economic data which could fully erode the growing optimism.

Snap Shot

Global Indexes Current Level % Change
Nikkei 225 Index8,857.93+ 1.23
Hang Seng Index14,865.54+ 2.19
Shanghai Index2,419.78- 0.22
FTSE 100 Index4,075.70+ 1.14
DAX Index4,437.32+ 1.19
SMI Index5,095.01+ 1.03
DJIA futures8,016.00+ 0.41

World Markets Current Level % Change
Gold878.00- 1.67
Silver12.45- 2.50
VIX39.70- 5.56
Crude wti53.38+ 1.67
USD Index84.00- 0.20

Todays Calender Estimates Previous Country / GMT
PPI, % m/m (y/y)-0.5 ,-1.5-0.8 ,-0.5EZ / 8.00
Retail sales, % m/m (y/y)-0.40.1 (-2.0)EZ / 8.00


Currency Tech

AUDUSD
R 3. 0.7738
R 2: 0.7355
R 1: 0.7268
CURRENT: 0.7168
S 1: 0.6976
S 2: 0.6857
S 3: 0.6771

EURJPY
R 3: 141.74
R 2: 139.35
R 1: 138.57
CURRENT: 136.89
S 1: 133.18
S 2: 129.87
S 3: 128.24

USDSGD
R 3: 1.5361
R 2: 1.5258
R 1: 1.5202
CURRENT: 1.5000
S 1: 1.4973
S 2: 1.4904
S 3: 1.4805

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