Currency Tech

EURUSD R 2: 1.3215 R 1: 1.3120 CURRENT: 1.2955 S 1: 1.2880 S 2: 1.2725

USDJPY R 2: 97.00 R 1: 95.00 CURRENT: 94.73 S 1: 94.35 S 2: 93.70

GBPUSD R 2: 1.5265 R 1: 1.5130 CURRENT: 1.5138 S 1: 1.5000 S 2: 1.4850

AUDUSD R 2: 0.9390 R 1: 0.9300 CURRENT: 0.9093 S 1: 0.9050 S 2: 0.8900

Market Brief

The USDJPY climbed to 94.73 before US reports today that may show companies added jobs in April and service industries expanded at the fastest pace in almost five years, backing the case for the Fed to withdraw stimulus measures. The Fed is likely to raise its benchmark interest rate to 0.75% from as low as zero by the end of 2010, while the BOJ is expected to keep its overnight lending rate at 0.1% according to market analysts. The greenback is being helped by more reports suggesting that the US economy is growing much faster than the other major economies and is likely to be the first to hike interest rates. Companies in the US probably hired 30,000 workers in April, after a 23,000 decline the previous month according to the ADP Employer Services' report due today while the ISM service sector index probably climbed to 56.0 in April (prev. 55.4), the highest level since May 2006.The AUDUSD traded at 0.9103 after earlier falling to 0.9072, the weakest since March 29 near a five-week low while AUDJPY was at 86.23 as concern global growth may falter and speculation the RBA will temper the pace of future interest-rate increases damped demand for riskier assets. The NZDUSD was at 0.7208 and NZDJPY was at 68.29 and weakened yesterday as prices of commodities slumped on signs China's economy will slow. AUDUSD rose earlier after a government report showed home-building approvals increased by 15.3% (prev. -3.3%, exp. 0.8%) in March by the most since 2002; a sign housing demand hasn't been damped by the RBA's rate increases.

The EURUSD fell to the lowest since April 2009 on concern the EU and IMF's 110 billion EUR aid package for Greece won't contain the region's debt crisis. The EUR slipped against 11 of 16 major counterparts as German Chancellor Angela Merkel speaks to parliament today on the bailout after her coalition said allowing the orderly default of region members burdened with debt may avoid a repeat of the Greek crisis. The EURUSD slid to 1.2961 and touched 1.2938, the weakest since April 22, 2009 while EURJPY was at 122.80 after it earlier slipped to 122.59, the lowest since April 28. EURGBP traded near an eight-month low as bond yields from Spain to Portugal and Ireland climbed on speculation the crisis that began in Greece is spreading. The EURUSD's 14-day stochastic oscillator declined to 3.9 today, below the 20 level which indicates it has declined too quickly and is poised to advance. The GBP is strengthening against its most-active counterparts and gilts are rebounding as polls show the Conservative Party may come closest to winning tomorrow's election. Traders are betting that whichever party forms a government will deliver a plan to reduce the record budget deficit. S&P and Moody's signaled they may remove Britain's AAA grade depending on the new government's measures. GBPUSD dropped for a fourth day, falling to 1.5126 while EURGBP traded at 0.8557.