EURUSD R 2: 1.3000 R 1: 1.2882 CURRENT: 1.2717 S 1: 1.2614 S 2: 1.2520
USDJPY R 2: 90.48 R 1: 89.77 CURRENT: 88.96 S 1: 88.00 S 2: 87.33
GBPUSD R 2: 1.5530 R 1: 1.5332 CURRENT: 1.5203 S 1: 1.5098 S 2: 1.4964
AUDUSD R 2: 0.8975 R 1: 0.8866 CURRENT: 0.8815 S 1: 0.8711 S 2: 0.8598
Asian equities opened in confident mood this morning (the Nikkei was approaching 3% gains on the day at the time of writing) and was trading stable, following a US session in which risk appetite was given a boost by a strong start to the Q2 earning season. The giant chip maker Intel posted a better than expected earnings per share at 0.51 cents versus analysts' expected 0.43 cents and the positive earnings looks likely to keep the markets higher against the Greenback. Safe havens such as the Yen will take a hit too as the profit growth forecasts for the top US companies will boost demand for riskier assets. After rallying from sub 0.8700 levels yesterday, the AUDUSD pair - a growth currency typically seen to benefit when risk build ups are evident in the market - was trading in a stable range above 0.8800 levels and looks good to have a re-test of 0.8850 levels which so far has proven to be a decent resistance level in the past months.In other news, Singapore recorded a growth rate of 18.1% for the first half of 2010, putting the nation on course to challenge China as the fastest growing economy. GDP readings showed the island nation expand at a 26% annualized rate, the fastest since record taking began. With talks of a double-dip and Portugal's recent downgrade (which was albeit expected), the news was welcomed like a breath of fresh air and will keep Asian investors in a bullish, risk-seeking mood. The Singaporean Dollar was trading at 1.3765 after having touched 1.3733, this of course following yesterday's impressive rally from above 1.3860 levels.
We can expect the bullish sentiment to continue through the morning with the earnings likely to keep risk markets higher into the European trading session. This could go all out the window however with some crucial data on tap; starting with the UK jobs report, followed by Euro-zone CPI and Retail sales in the US, there is significant event risk ahead for the mood to change and potentially be supportive for the Dollar. Finally, we have the release of the June FOMC minutes. With no major surprises expected, it will provide some updated insight to the Fed's views on the US growth, employment and inflation outlook.