Market Brief
The US Dollar continued its fall backed by rising equity markets as Chinese equities started its rebound after the 4% decline on Wednesday. AIG said that it plans to repay the money borrowed from the US government which also helped push the equity markets higher. Leading indicators posted a reading of a rise of 0.6% backed by improvements in job sector and positive equity markets while the Philadelphia Fed manufacturing activity showed a positive reading at 4.2 against an expectation of -2.0 and better than the previous reading of -7.5 as new orders received increased. This data shows that the manufacturing sector has gained the most majorly boosted by the auto sector where the cash-for-clunkers program has helped the most.
Also released was the Initial Jobless claims reading which showed that the new claims rose 15,000 unexpectedly to 576,000 while the total claims till date rose 2,000 to 6.241 million. The mortgage delinquencies rose 9.24% up from 9.12%, the highest in till date.
The Pound fell yesterday being the weakest among the majors after the UK government posted a deficit of 8 Billion pounds, the highest till date to lows of 1.6451 after positive retail sales boosted the Pound to 1.6606 as the retail sales rose by 0.4% while the annual rate rose to a 14 month high of 3.3%.
Upcoming releases for today, we have the PMI Manufacturing and Services data from the Germany and the Euro Zone while the US will release the Existing Home Sales data at 1400 GMT. The Home sales data could be a factor in determinign the breakout levels for the major pairs as continued weakness in the housing market is dominant as unemployment rate still holds the key to economic growth.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 10,238.20 | -1.39 |
| Hang Seng Index | 20,199.02 | -0.63 |
| Shanghai Index | 2,960.77 | 1.68 |
| FTSE 100 Index | 4,767.68 | 0.23 |
| DAX Index | 5,322.54 | 0.21 |
| SMI Index | 6,073.11 | 0.68 |
| DJIA futures | 9,314.00 | -0.06 |
| World Markets | Current Level | % Change |
| Gold | 940.75 | 0.01 |
| Silver | 13.88 | -0.39 |
| VIX | 25.09 | -4.45 |
| Crude wti | 72.79 | -0.16 |
| USD Index | 78.23 | -0.22 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Flash manufacturing PMI, index Aug | 47.5 | 46 | EUR / 7.58 |
| Flash services PMI, index Aug | 46.3 | 45.7 | EUR / 7.58 |
| Flash composite PMI, index Aug | 47.8 | 47 | EUR / 7.58 |
| Fed Chairman Bernanke speaks on "Reflections on a | -- | -- | USD / 14.00 |
| Existing home sales, mn Jul | 4.97 | 4.89 | USD / 14.00 |
Currency Tech
AUDUSD
R 2: 0.8520
R 1: 0.8478
CURRENT: 0.8265
S 1: 0.8125
S 2: 0.7925
USDCAD
R 1: 1.1345
R 1: 1.1225
CURRENT: 1.0868
S 1: 1.0790
S 2: 1.0633
EURJPY
R 2: 137.85
R 1: 135.15
CURRENT: 133.94
S 1: 132.10
S 2: 131.60
USDMXN
R 2: 13.145
R 1: 13.075
CURRENT: 12.865
S 1: 12.789
S 2: 12.620
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
