British Pound (BPM9):
The BP opened lower at 1.4555 after the Confederation of British Industry increased the contraction in the U.K. economy in 2009 to 3.9% from 3.3%. Prices slid to a morning Lo of 1.4496 as pressure from a stronger DX weighed on prices. As the DX relaxed, the BP rose towards the close to end the session at 1.4543, down 248 tics. The s/t trend remains 'negative' w/neutral momentum indicators. Pressure on the ECB to lower rates on May 7th could lend support to Sterling. Traders will key on the DX for direction. A lower open may find Support at 1.4421 and 1.4298, while an open above 1.4618 should find Resistance at 1.4741 and 1.4938.
Dollar Index (DXM9):
The DX opened higher at 86.75 as profit-taking in the equity markets saw traders seeking the safe-haven of Treasuries as risk-avoidance helped push the DX to a morning Hi of 87.22, before sliding to our secondary Resistance level of 86.925 as we approach mid-day. Prices found Support at this level through to the day-session close of 86.99, up 70 tics. The s/t trend remains 'positive' w/ firm momentum indicators. A weaker EC and equity market could see further Support for Treasuries and the DX. A higher open should find Resistance at 87.42 and 87.86, while an open below 86.78 may find Support at 86.34 and 85.70.
Canadian Dollar (CDM9):
The CD opened lower at .8109 against the stronger DX and weaker commodity prices. Prices drifted to a morning Lo of .8077, before bouncing into the afternoon session. Continued weakness in oil and other commodities kept the CD in a thin range through to the close of .8082, down 154 tics. The BoC will look to leave rates 'unchanged' at Tuesday's rate policy meeting and use 'quantitative easing' to purchase s/t existing debt, which will be detailed in their report on Thursday. The close below the 10-day MA changes the s/t trend 'negative' w/ neutral momentum indicators. Traders will be cautious ahead of the 9:00am et announcement. A lower open may find support at .8023 and .7963, while an open above .8136 should find Resistance at .8196 and .8309.