Moring FOREX and Markets Briefing |
FOREX
The Euro (1.4472) is coming down from yesterday's high of 1.4519, but is finding support around 1.4450. While that support holds, a test of the important resistance at 1.4600 is possible.
USDJPY (83.90) has bounced back well from the 200DMA (at 83.49) yesterday and it may be trade from a range of 83.50-84.50 today. The EURJPY Cross (121.38) is consolidating, and is trading between 120.50-122. The cross remains bullish. A strong move above 122 might trigger further rise to 123+.
The Cable (1.6256) fell sharply yesterday and is now moving around its support at 1.6250. The immediate outlook remains mixed. USDCHF (0.8974) had dropped below 0.9000 and could test 0.8900-8800 on the downside in the coming days. Aussie (1.0434) failed to sustain the break above 1.0500 yesterday and could fall to 1.0300 if it breaks below 1.0400.
The Asian Currencies are trading slightly weaker. The Korean-Won is trading near 1092 and the Sing Dollar is trading near 1.2584.
MARKETS
The US markets fell yesterday. Dow (12263.58) was down 0.95% and the Nasdaq (2744.79) was down 0.96%. As the Dow has been turning down from its 12400-500 resistance region there is a chance of seeing further fall towards 12000 or maybe even lower in the coming days.
The Asian markets are trading in the red. Nikkei (9545.12) is down 0.11% and Shanghai (3005.42) is down 0.53%. The Indian markets were closed yesterday and the Sensex (19265.54) and Nifty (5785.70) and could fall today following the other Asian markets.
COMMODITIES
Crude (106.09) fell further and is now trading below its support at 107. Warning from OPEC and IEA that high prices could weaken the demand and Goldman Sachs' recommendation to take profits reinforced the downside pressure. While below 107, a further drop to 104-103 is possible. The US Crude inventory data release is published today.
Gold (1455.60) fell sharply yesterday from its high at1465.80 and witnessed an intraday break below 1450. The metal then bounced back from its low of 1445. It will have to be seen whether the important resistance turned support in 1450-45 region can continue to hold. A break below 1445 could increase the chances of further dip to 1430.
Contrary to other commodities Silver (40.13) has not fallen sharply in the last couple of days which is very interesting. Support at 39.50 is holding. A break below it might see 38 on the downside.
On the other hand, any reversal in other commodities might trigger sharp rise in Silver since it has not dropped as compared to others.
Copper (4.36) is trading below its 4.40-38 support region. While below 4.40, a revisit of its crucial support at 4.20 is possible.
INTEREST RATES
The 3M USD LIBOR was unchanged at 0.28%. The USD 2yr and 10yr yields were down 5 bps each to quote at 0.76% and 3.51% respectively.
Yesterday the BOC left the rates unchanged at 1.00%.
About the author: Ava FX Analysts Department
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