Currency Tech

EURUSD R 2: 1.3340 R 1: 1.3280 CURRENT: 1.3201 S 1: 1.3090 S 2: 1.3000

USDJPY R 2: 97.20 R 1: 95.80 CURRENT: 94.92 S 1: 93.80 S 2: 92.50

GBPUSD R 2: 1.5400 R 1: 1.5320 CURRENT: 1.5253 S 1: 1.5130 S 2: 1.5000

AUDUSD R 2: 0.9390 R 1: 0.9300 CURRENT: 0.9236 S 1: 0.9150 S 2: 0.9050

Market Brief

The USDJPY rose to 94.92, after earlier rising to 94.99, the strongest since Aug. 24, 2009 and the EURJPY strengthened 0.4% to 125.29 as signs the global economic recovery is gaining momentum damped demand for JPY as a refuge. The JPY dropped against all of its counterparts before reports today will show US home sales rose 5% for a second month and UK manufacturing climbed to 57.5 in April. Yesterday, USDJPY climbed after the manufacturing ISM index climbed to 60.4 in March the fastest pace since June 2004, construction spending rose 0.2% in March (prev. -2.1%) while personal income and spending were about in line with expectations. The JPY also showed weakness after S&P indicated a fiscal plan scheduled for next month may be key to whether it will cut the nation's sovereign credit rating. Chinese manufacturing grew at a slower pace in April falling to a six-month low of 55.4 (HSBC PMI Index) indicating that government efforts to prevent overheating in the economy may be starting to bite. China's policy makers two days ago ordered banks to hold more of their assets as reserves for the third time this year, and have also sought to rein in the nation's property market. Any sustained slowdown in the nation's factories would alleviate inflation pressures, and could affect the government's decision whether to end the Yuan's peg to the USD. While officials are paring back stimulus by targeting a 22% reduction in new loans this year and raising reserve requirements, the central bank is yet to raise interest rates from crisis levels.The RBA raised its interest rate to 4.5% from 4.25% for the sixth time after inflation accelerated and officials judged the nation is insulated from the Greece-sparked sovereign debt concerns. The AUDUSD fell to 0.9238 after RBA Governor Glen Stevens said today that interest rates for most borrowers will now be around average levels. Stevens is under pressure to extend a world-leading round of rate increases as Australia's economy accelerates, stoking inflation and property prices, which surged more than 20% annually. Stronger growth and higher borrowing costs have pushed the Aussie up 26% in the past year.

The EURUSD fell for the first time in four days as investors sought more proof that a 110 billion-EUR ($146 billion) bailout package will ease Greece's fiscal crisis. EUR slumped versus most of its counterparts as German Chancellor Angela Merkel began making a public case for her citizens to aid Greece also adding that the aid for Greece is of enormous importance. The EURUSD dropped 0.8% to 1.3155 from 1.3294 last week while EURJPY traded at 124.71. EU leaders are scheduled to meet on May 7 to discuss the timeline of parliamentary approval for loans to Greece and Germany is due to debate the plan on the same day.