Market Brief
The USDJPY traded near the lowest level in two weeks at 93.28 while the EURJPY was trading at 126.96 on speculation a report today will show US consumer prices stayed near zero, backing the case for Fed to keep borrowing costs near zero. The JPY dropped against most of the currencies as Asian stocks rallied on revenue at Intel that beat analyst estimates and ahead of US retail sales expected to increase 1.2% in March, the biggest gain in four months. The USD was little changed as Fed member Lacker said the US economy will probably expand at a moderate pace for the rest of this year as spending by consumers and businesses picks up while stopping short of endorsing any change to Fed monetary policy. The USD may further weaken after Treasury Secretary Geithner said yesterday that he's confident China will pursue a more flexible exchange rate. A substantial revaluation of the Yuan would be likely to raise concerns about a slowing in the Chinese economy, which could be negative for risk appetite in general according to market estimates.

In other Asian news, Singapore's dollar surged by the most in 10 months after the government raised its 2010 growth forecast for a second time and the central bank unexpectedly revalued the currency adding that the GDP will increase by as much as 9% in 2010. South Korea's won was the second-biggest gainer against major currencies after the nation's jobless rate sank the most in 10 years as unemployment fell to 3.8% (prev. 4.4%) in March.

The AUDUSD rose for a second day as signs that Asia's economic recovery is gaining momentum boosted demand for higher-yielding currencies. The currency also advanced against 14 of 16 majors after Australian consumer confidence held near the highest level in almost three years slipping 1% this month to 116.1 points. NZDUSD fell as retail sales unexpectedly declined 0.6% in February, adding to signs the central bank will keep interest rates at a record low to sustain the economic recovery. AUDUSD rose to 0.9315 while NZDUSD fell 0.3% to 0.7114.

The EURUSD rose as high as 1.3659 after trading at a low of 1.3545 after Greece sold Treasury bills in its first debt auction since it got the international aid pledge. The EUR's rally may prove fleeting as Europe's economy lags behind the US as the EU's economy may expand 1.15% this year, compared with 3% for the US according to estimates and as the Fed may raise its target interest rate to 0.75% this year from a range of zero to 0.25%, while the ECB will keep its benchmark rate at 1%. The EUR is now undergoing a relief rally, but the financial package does not change the medium-term outlook, which is that the EU is likely to underperform other developed economies.

G10 Advancers and Decliners vs USD

Global IndexesCurrent Level% Change
Nikkei 225 Index11197.02+ 0.32
Hang Seng Index22081.21- 0.10
Shanghai Index3151.80- 0.30
FTSE futures5720.00- 0.24
DAX futures6241.00- 0.32
DJIA futures10983.00+ 0.18
S&P  future1194.80+ 0.14
World MarketsCurrent Level% Change
Gold1155.40+ 0.41
Silver18.30+ 0.37
Crude wti84.39+ 0.40
USD Index80.24- 0.22
VIX16.20+ 3.98
MBA Mortgage Applications--11%USD/1100
CPI (MoM)0.1%0%USD/1230
Core CPI (MoM)0.1%0.1%USD/1230
Advanced Retail Sales1.2%0.3%USD/1230
Retail Sales less Autos0.5%0.8%USD/1230
Business Inventories0.4%0%USD/1400
Fed's Beige Book--USD/1800

Currency Tech
R 2: 1.3800
R 1: 1.3725
CURRENT: 1.3653
S 1: 1.3550
S 2: 1.3450

R 2: 94.82
R 1: 93.77
CURRENT: 93.20
S 1: 92.15
S 2: 91.95

R 2: 1.5520
R 1: 1.5485
CURRENT: 1.5418
S 1: 1.5250
S 2: 1.5115

R 2: 0.9450
R 1: 0.9390
CURRENT: 0.9314
S 1: 0.9220
S 2: 0.9050

R 2: 1.0310
R 1: 1.0140
CURRENT: 0.9992
S 1: 0.9900
S 2: 0.9810