Market Brief

The USDJPY made a new 15 year low after the pair touched 83.35 this morning. Even after Japan’s Finance Minister Noda said the government was watching markets closely and potential ‘bold’ measures to intervene to counter the Yen’s appreciation would be considered, the Yen has shown no signs of cooling off. Perhaps data from this morning further compounded to the Yen’s bullish momentum when Japan’s current account total widened to 1.68 trillion Yen, beating analysts’ expectations of a surplus forecast of 1.54 trillion Yen. Doubts about the US recovery have speculators piling onto the Yen’s bullish run and a bearish anticipation of today’s release of the Fed’s beige book has helped the Yen touch the new 15 year high. The stronger Yen has Japanese equities hurting, with the Nikkei extending its selloff into a second straight day. At the time of writing, the Nikkei was -2.18% lower while the Shanghai Composite was -0.35% lower.
The rest of the majors have been making modest gains against the US Dollar this morning, however we await the European opening bell in order gauge the true sense of direction for the day ahead. Looking forward, we have manufacturing data from the UK and Germany along with the BoC’s rate decision. The general consensus is that policymakers will raise rates by 25 bps to 1.00%, however this is not a unanimous view. Finally we have the Fed’s beige book releasing at 1800 GMT.
Snap Shot

Global Indexes Current Level % Change
Nikkei 225 Index9,024.60- 2.18
Hang Seng Index21,095.91- 1.43
Shanghai Index2,688.96- 0.35
S&P future1,090.10- 0.10
DJIA futures10,326.00- 0.12
FTSE futures5,411.50- 0.34
DAX futures6,122.00- 0.46

World Markets Current Level % Change
Crude wti73.82- 0.36
Gold1,259.00+ 0.27
Silver19.91+ 0.64
USD Index82.70- 0.23
VIX23.80+ 11.68

Todays Calender Estimates Previous Country / GMT
Halifax House Price 3Mths/Year4.40%4.90%GBP / 0700
Halifax House Prices sa MoM-0.50%0.60%GBP / 0700
Industrial Production (MoM/YoY)0.4%/2.0%-0.384615385GBP / 0830
Manufacturing Production (MoM/YoY)0.3%/4.9%0.3%/4.1%GBP / 0830
German Industrial Production (MoM/YoY)1.0%/12.5%-0.000550459EUR / 1000
MBA Mortgage Applications--2.70%USD / 1100
Bank of Canada Rate Decision1.00%0.75%CAD / 1300
Fed's Beige BookUSD / 1800


Currency Tech

EURUSD
R 2: 1.2906
R 1: 1.2845
CURRENT: 1.2721
S 1: 1.2671
S 2: 1.2600

USDJPY
R 2: 85.00
R 1: 84.00
CURRENT: 83.47
S 1: 83.35
S 2: 83.00

GBPUSD
R 2: 1.5496
R 1: 1.5407
CURRENT: 1.5383
S 1: 1.5256
S 2: 1.5132

AUDUSD
R 2: 0.9220
R 1: 0.9176
CURRENT: 0.9135
S 1: 0.9100
S 2: 0.9060

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