ASIA-PACIFIC Trading Newsletter

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UK PMI MANUFACTURING

Friday Notes - ECB rate cuts – merely postponed! by HVB Group

After having held up in the last two months, we expect the manufacturing PMI to have fallen slightly below its long−term average in April to 50.7. The credit squeeze coupled with oil prices setting new records should keep weighing on sentiment. Some relief will come from a weaker currency which is supporting UK exports. Output prices are likely to remain high, reflecting the upward trend in commodity prices.

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US FED INTEREST RATE DECISION

The Federal Reserve cuts rates by 25bp to 2% (FXstreet.com)

The Federal Reserve's Monetary Policy Committee has decided to cut interest rates by 25 basis points to 2%, as widely expected after their monetary policy meeting.

• Read full Monetary Policy Release at the Fed
• Odds of further rate cuts increase after Fed's latest moves (Thomson Financial News)
• Treasury prices edge lower ahead of Fed rate decision (Thomson Financial News)
• Fed cuts key rate by a quarter−point (Thomson Financial News)

Daily Forex News - Dollar rose ahead of FOMC and expectation for a "pause" in US interest rate cutting by ACM − Advanced Currency Markets

Daily FX Report - Fed is expected to cut interest rates by Varengold Wertpapierhandelsbank AG

Daily Trading Forecast - A Slow Day in FX Markets as Traders Await the Fed's Decision Tonight by Swiss e Trade AG

US CHICAGO PURCHASING MANAGERS' INDEX

US Chicago manufacturing PMI remains into recession in April (FXstreet.com)

Manufacturing sector's activity in the Chicago area has failed to grow for its third consecutive month in April, prices have eased, and the employment index has fallen considerably, according to the latest Chicago manufacturing PMI.

• Read Chicago Business Barometer Stalled at Kingsbury International
• Table Of Data From US Chicago Purchasing Managers' Report (Dow Jones)
• Chicago PMI Still Shows Contraction, Softening Employment (Dow Jones)
• U.S. Chicago April purchasers index rises to 48.3 vs 47.5 expected UPDATE (Thomson Financial News)

US GROSS DOMESTIC PRODUCT ANNUALIZED

US Real GDP growth remains growing at a 0.6% pace in the first quarter (FXstreet.com)

Gross Domestic Product has increased in the first three months of the year at the same pace as in the previous quarter, while the Gross Domestic Purchase4s prices index has eased in the same period, according to data released by the US Commerce Department.

• Read the GDP: First Quarter 2008 at the US Bureau of Economic Analysis
• Economy grows by only 0.6 percent in first quarter (Thomson Financial News)
• DATAWATCH Positive first quarter GDP bolsters recession naysayers (Thomson Financial News)
• Economy grows by only 0.6 percent in first quarter (Thomson Financial News)

Daily Forex Technical Report − Watch Eurozone HICP, US GDP & ADP before FOMC by ActionForex.com

US economic indicators - Consumer confidence is likely to have declined noticeably again in April by BHF−Bank

US ADP EMPLOYMENT CHANGE

ADP Sees Apr US Private Sector Jobs +10,000 (Dow Jones)

An employment indicator published Wednesday by payrolls giant Automatic Data Processing Inc. (ADP) and consultancy Macroeconomic Advisers reported a 10,000 increase in U.S. private−sector jobs in April.

• Read the ADP National Employment Report
• U.S. ADP April private payrolls up 10,000 UPDATE (Thomson Financial News)
• U.S. April private payrolls up 10,000, suggests total payrolls up 29,500 (Thomson Financial News)
• US Employment Costs: Table Of Data From Labor Dept. (Dow Jones)

Daily Forex Technical Report − Watch Eurozone HICP, US GDP & ADP before FOMC by ActionForex.com