Currency Tech

EURUSD R 2: 1.2250 R 1: 1.2000 CURRENT: 1.1893 S 1: 1.1780 S 2: 1.1640

USDJPY R 2: 95.00 R 1: 93.70 CURRENT: 91.18 S 1: 89.00 S 2: 88.00

GBPUSD R 2: 1.4725 R 1: 1.4550 CURRENT: 1.4430 S 1: 1.4320 S 2: 1.4140

AUDUSD R 2: 0.8575 R 1: 0.8380 CURRENT: 0.8130 S 1: 0.8060 S 2: 0.7960

Market Brief

The USDJPY weakened for a second day to 91.15 as JPY gained versus all 16 of its most-traded counterparts as Asian stocks extended a global slump today and US equities fell to a four-month low after payrolls rose less than forecast by 431,000 (exp. 536,000) on Friday. The US government hired 411,000 temporary workers for the 2010 census, accounting for the bulk of the gain in employment and private payrolls rose a less-than-forecast 41,000 (prev. 218,000). US retail sales growth probably slowed in May to 0.2% (prev. 0.4%) due on June 11. AUDJPY declined for a second day as investors sold higher-yielding assets on concern over Europe and speculation China's efforts to curb asset prices will weigh on growth as China is Australia's largest trading partner. Consumer prices in China probably climbed in May at the fastest pace since October 2008, according to a report due on June 11. Gains in yen will likely be limited on speculation Prime Minister Naoto Kan may favor a weaker currency. As finance minister, he had said that he wanted the yen to fall a bit more and pledged to monitor its level. The Japanese government is due to say in a few weeks how it intends to reduce public debt and release a strategy to sustain a nominal 3% GDP over the next decade, a pace unseen since 1991.The AUDUSD dropped to 0.8111 from 0.8234 on Friday while AUDJPY fell 2.3% to 73.93 and NZDUSD declined to 0.6625 from 0.6707 while NZDJPY weakened 2.1% to 60.36 for a second day as signs global policy makers may clash over strategies for recovery damped demand for growth-sensitive currencies. The AUDUSD held its declines after a report showed that jobs advertised advanced 4.3%. The currencies also fell on prospects Hungary will slash spending, adding to concern Europe's debt crisis will slow economic growth. Treasury Secretary Geithner said the world can't rely again on US to drive growth and urged other nations to stimulate their own demand while ECB President Trichet said fiscal tightening in old industrialized economies would spur the expansion by boosting investor confidence at the G20 meeting in South Korea. S&P/ASX 200 Index dropped 3.2% and the MSCI Asia Pacific Index fell 3.3%. The RBNZ will probably raise the interest rate to 2.75% from a record low of 2.50% on June 10, according to estimates.

The EURJPY dropped 1.5% to 108.38 from 109.98 on Friday, when it declined 2.5% to 108.19, the weakest since November 2001 and EURUSD fell to 1.1893 from 1.1967 on Friday and touched 1.1883, the lowest level since March 2006 on concern Europe's sovereign debt crisis will spread, denting global growth. EUR fell for a third day after officials in Hungary's government last week compared the country to Greece while claiming the previous administration lied about public finances. Europe's banks will have to write off 195 billion EUR of bad debts by 2011, the ECB said on May 31. German factory orders probably fell 0.4% according to a report due today. The EURUSD dropped 2.5% last week as credit-default swaps on France, Austria, Belgium and Germany also rose. The cost of insuring against losses on Hungarian sovereign debt surged after comments from government officials sparked concern Europe's sovereign debt crisis may be spreading to Eastern Europe.