Currency Tech

EURUSD
R 2: 1.3325
R 1: 1.3170
CURRENT: 1.3100
S 1: 1.2962
S 2: 1.2905

USDCHF
R 2: 0.9886
R 1: 0.9784
CURRENT: 0.9693
S 1: 0.9661
S 2: 0.9605

GBPUSD
R 2: 1.5911
R 1: 1.5822
CURRENT: 1.5757
S 1: 1.5583
S 2: 1.5513

AUDUSD
R 2: 1.0000
R 1: 0.9977
CURRENT: 0.9947
S 1. 0.9804
S 2: 0.9753

Market Brief

Asian markets moved up in the positive territory with the MSCI Asia Pacific Index up 0.8% to the highest level since June 2008 on speculation that the US recovery is taking shape and EU's debt crisis will be contained. Markets are moving up before release of US retail sales and industrial production report due tomorrow expected to show increase for a sixth month.

Spain and Italy are poised to auction their debts in a test of investor confidence after yesterday's Portugal bond sale and Germany's Angela Merkel pledging to take whatever steps necessary to contain the crisis. Despite monetary tightening measures by emerging nations, equity rally could buoy markets and the EU situation could look towards recovery.

The EURUSD traded at a low of 1.3093 after trading at high of 1.3145 yesterday as Dollar gained some ground on speculation of US recovery, AUDUSD traded at low of 0.9916 as jobs added were only 2,300 less than forecast of 25,000 job additions while unemployment rate fell to 5% from 5.2%, USDJPY traded at 83.16 and the Bank of Korea increased its interest rates by 0.25% to 2.75% to counter inflationary pressures.

With focus increasing on EU debt crisis especially Portugal and Spain, the ECB have a tough job in hand to decide when to stop buying government assets, withdraw unlimited liquidity provision for banks and even raise interest rates to control inflation risk. Today's ECB policy meeting could see interest rates being left unchanged at 1% even as inflation is at 2.2%, more than the 2% benchmark.

Portugal may join Greece and Ireland in receiving EU bailout aid as economies from Greece, Spain, Portugal may face contraction in their economy and Portugal and Spain may not be able to raise enough funds to repay their debts as Spain auctions 3 Billion Euro of bonds today.

Today's calendar marks UK industrial production, manufacturing production and the important BOE rate decision while Europe sees ECB rate decision followed by ECB President Trichet's press conference. US releases trade balance, jobless claims and producer prices data.

width=342

width=343