Currency Tech

EURUSD R 2: 1.2650 R 1: 1.2450 CURRENT: 1.2292 S 1: 1.2125 S 2: 1.2000

USDJPY R 2: 93.70 R 1: 92.80 CURRENT: 90.14 S 1: 89.00 S 2: 88.00

GBPUSD R 2: 1.4725 R 1: 1.4550 CURRENT: 1.4386 S 1: 1.4110 S 2: 1.3830

AUDUSD R 2: 0.8575 R 1: 0.8380 CURRENT: 0.8226 S 1: 0.8130 S 2: 0.8040

Market Brief

The EURUSD fell to 1.2282 after it touched 1.2178, the lowest since May 19 while EURJPY dropped to 110.69 after it fell to 108.84 yesterday, the least since November 2001 for a third day as concern Europe's debt crisis will slow economic growth damped demand for the region's assets. The EUR dropped before reports forecast to show a drop in German consumer confidence to 3.6 points (prev. 3.8 points) and French consumer spending dropped 0.5%.The GBPUSD has fallen 3% this year amid concern that the country's record budget deficit will weigh on the GBP. UK stocks dropped to an eight-month low, with the FTSE 100 Index sliding 2.5%. The GBPUSD dropped despite UK Q1 GDP growing 0.3% (exp. 0.2%). BOE's Adam Posen said the UK and US economies are at a low risk of following Japan into a decade of stagnation even as the threat of deflation remains.

AUDUSD slid to 0.8232 after it touched 0.8067, the lowest level since July 20 while NZDUSD fell 0.5% to 0.6666 after touching 0.6561, the lowest level since July 31 as Spain's banking crisis and tension between North and South Korea deterred demand for currencies related to economic growth. Forecast for the AUDUSD to reach parity this year was dropped as Europe's sovereign-debt crisis threatens to undermine global growth. The forecast for the currency now is to reach 0.8400 and end the year at 0.9000. For the NZDUSD, the forecast was dropped to 0.6900 from 0.7300.

The South Korean won halted declines as Vice Finance Minister Yim Jong Yong said at an emergency meeting today that the nation will take prompt and active steps to stabilize the currency. The won slumped yesterday as tensions escalated between the two Koreas over the sinking of a warship from the South's navy in March. The USDKRW was at 1,254.15 after it touched 1,277.85, the strongest since July 16.

Today's news would be focused on durable goods orders which probably rose 1.3% and new home sales which probably increased to 425,000, the most since September 2008 pointing to a broadening of the U.S. recovery. Excluding transportation, durable goods orders probably rose 0.5% (prev. 3.7%).