Market Brief
The Usd was stronger in the Asian Session, as investors retreated from risky assets. The EurUsd traded down to 1.3793 from 1.3940, while the UsdJpy from 97.05 to 95.50. However, FX took a back seat to the rather large selloff in the Treasury market. Investors retreated as Treasury yields pushed higher (US 10 year yield is now close to 3.70%, 50bp higher than a week ago), despite the fact that second Treasury auction this week was well-received with a bid/cover ratio of 2.32 vs. 2.16 prior. Perhaps the lone risk trigger was the report from the FDIC is that bank credit problems still persist. In Australia. Q1's Capex dropped by 8.9% on the quarter, slightly weaker than the expectations of a 7.0% decline. While UK CBI distributive trades survey reported sales, US durable goods, initial claims, US new homes sales will provide the market with plently of talking points. However in our book the most important event will be the Treasury auction of $25bn of 7yr debt and movement in the fixed income market.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,451.39 | 0.13 |
| Hang Seng Index | 17,885.27 | 5.26 |
| Shanghai Index | 2,632.93 | 1.71 |
| FTSE 100 Index | 4,374.33 | -0.94 |
| DAX Index | 4,953.06 | -0.95 |
| SMI Index | 5,368.03 | -0.94 |
| DJIA futures | 8,331.00 | 0.41 |
| World Markets | Current Level | % Change |
| Gold | 949.6 | -0.03 |
| Silver | 14.83 | 0.5 |
| VIX | 32.36 | 5.68 |
| Crude wti | 63.39 | -0.09 |
| USD Index | 80.8 | 0.04 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Consumer confidence, index May | -30 | -31 | EUR / 09.00 |
| Industrial confidence, index May | -33 | -35 | EUR / 09.00 |
| CBI distributive trades, reported sales May | -11 | 3 | GBP / 10.00 |
| Durable goods new orders, % m/m (y/y) Apr | 0.5,-24.4 | -0.8,-25.6 | USD / 12.30 |
| Initial jobless claims, thous (4wk mvg avg) 23-May | 635 | 631 (629) | USD / 12.30 |
| New home sales, thous. saar Apr | 363 | 356 | USD / 14.00 |
| Bundesbank President Weber speaks at a seminar on | -- | -- | EUR / 14.15 |
| BoE Deputy Governor Paul Tucker speaks at Bank of | -- | -- | GBP / 14.25 |
| GfK consumer confidence survey, bal May | -25 | -27 | GBP / 23.01 |
| Unemployment rate, % Apr | 5 | 4.8 | JPY / 23.30 |
| Job application ratio (x) Apr | 0.49 | 0.52 | JPY / 23.30 |
| Household consumption, % y/y Apr | -0.7 | -0.4 | JPY / 23.30 |
| Tokyo core CPI, % y/y May | -0.6 | 0 | JPY / 23.30 |
| Nationwide core CPI, % y/y Apr | -0.1 | -0.1 | JPY / 23.30 |
| Industrial production, % m/m Apr | 3.3 | 1.6 | JPY / 23.30 |
Currency Tech
AUDUSD
R 3: 0.8150
R 2: 0.8097
R 1: 0.7929
CURRENT: 0.7832
S 1: 0.7703
S 2: 0.7630
S 3: 0.7450
EURJPY
R 3: 135.57
R 2: 134.80
R 1: 133.60
CURRENT: 134.52
S 1: 131.50
S 2: 130.73
S 3: 129.73
USDSGD
R 3: 1.4803
R 2: 1.4748
R 1: 1.4665
CURRENT: 1.4535
S 1: 1.4320
S 2: 1.4270
S 3: 1.4165
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
