Market Brief

The EURJPY declined to 125.05 for the first time in three days as concerns about debt-stricken Greece boosted demand for JPY as a refuge. The USDJPY rose to 93.17 as Japan's Finance Minister said the BOJ and government should work to push inflation higher as high as 2%, adding to pressure for stimulus measures may add pressure on the BOJ to fight deflation. Gains in the JPY were also limited as Asian stocks extended an advance in US equities and after central banks indicated they will increase borrowing costs to contain inflation as the economic recovery gains momentum, encouraging demand for higher yields. In other news, India's rupee climbed after the RBI raised interest rates for the second time by 25 basis points to 3.75% in a month and ordered lenders to set aside more cash as reserves in an attempt to slow the highest inflation rate among the G20.The AUDUSD traded at 0.9298 close to its strongest level in five months while AUDJPY traded at 86.50 near its highest since September 2008 as improving corporate earnings boosted confidence in the global economic recovery and spurred demand for higher-yielding assets. Australian leading indicators gained 0.5% to 257.8, the highest since July 2008, adding to signs the economy will accelerate. The AUDNZD may advance for a second day on speculation a slow recovery in NZ will convince the RBNZ to keep interest rates at a record low. AUDUSD could trade at 0.9280 while NZDUSD will likely be supported near 0.7080. NZDUSD fell 0.3% to 0.7098 and NZDJPY traded at 66.02.The EUR weakened as Greece starts talks today on activating a 45 billion EUR rescue package. The EURUSD dropped to 1.3421 after touching 1.3405, the weakest since April 9 as Greek officials prepare to negotiate with the IMF, the ECB and the EU on deficit-cutting measures the nation must accept to tap the funds. Greece's government needs to raise about 10 billion EUR before the end of May and its soaring financing costs are lending urgency to the talks. UK jobless claims probably dropped by 10,000 (prev. -32.3k) for a second month in March while the ILO unemployment rate is expected to remain unchanged at 7.8% as the economy's recovery gathered pace before the general election due in two weeks. Data on jobs, the budget deficit and GDP which probably rose 0.4% in Q1, this week will provide the final glimpse before the May 6 election on the economy, which has taken center stage in the campaign. UK said yesterday it will begin a formal probe after the US SEC filed a lawsuit over Goldman's marketing of a collateralized debt obligation.Today's economic schedule will all be about UK data; with the release of the latest BoE Minutes, March claimant count, and ILO unemployment rate.

G10 Advancers and Decliners vs USD

 
CAD
0.16
width=120

 
JPY
0.03
width=22.5

 
GBP
0.02
width=15

width=30
CHF
-0.04
 

width=45
NOK
-0.06
 

width=45
AUD
-0.06
 

width=82.5
EUR
-0.11
 

width=82.5
DKK
-0.11
 

width=105
NZD
-0.14
 

width=120
SEK
-0.16
 

Global Indexes
Current Level
% Change

Nikkei 225 Index
11068.77
+ 1.54

Hang Seng Index
21555.67
- 0.31

Shanghai Index
2989.33
+ 0.33

FTSE futures
5738.50
+ 0.93

DAX futures
6266.00
+ 1.59

DJIA futures
11091.00
+ 0.15

S&P  future
1208.70
+ 0.27

World Markets
Current Level
% Change

Gold
1142.22
+ 0.13

Silver
17.90
+ 0.31

Crude wti
84.26
+ 0.49

VIX
15.73
- 9.28

USD Index
81.12
+ 0.08

Todays Calender
Estimates
Previous
Country / GMT

BOE Minutes
-
-
GBP/0830

Claimant Count Rate
4.9%
4.9%
GBP/0830

Jobless Claims Change
-10K
-32.3K
GBP/0830

ILO Unemployment Rate
7.8%
7.8%
GBP/0830

Fed's Bernanke Speaks
-
-
USD/1415

Currency Tech EURUSD R 2: 1.3725 R 1: 1.3568 CURRENT: 1.3421 S 1: 1.3370 S 2: 1.3260

USDJPY R 2: 94.82 R 1: 93.77 CURRENT: 93.13 S 1: 91.10 S 2: 90.00

GBPUSD R 2: 1.5600 R 1: 1.5525 CURRENT: 1.5351 S 1: 1.5130 S 2: 1.5000

AUDUSD R 2: 0.9450 R 1: 0.9390 CURRENT: 0.9315 S 1: 0.9150 S 2: 0.9050