Currency Tech

EURUSD R 2: 1.2600 R 1: 1.2475 CURRENT: 1.2400 S 1: 1.2230 S 2: 1.2000

USDJPY R 2: 95.00 R 1: 93.70 CURRENT: 90.80 S 1: 90.00 S 2: 88.00

GBPUSD R 2: 1.5050 R 1: 1.4900 CURRENT: 1.4838 S 1: 1.4650 S 2: 1.4500

AUDUSD R 2: 0.8920 R 1: 0.8800 CURRENT: 0.8705 S 1: 0.8550 S 2: 0.8350

Market Brief

The USDJPY declined for a fifth day after Japanese Prime Minister Naoto Kan pledged to cut the world's largest public debt, saying failure to do so may undermine the country's sovereignty. Yen rose versus 14 of its 16 major counterparts as Kan said he'd consider the opposition Liberal Democratic Party's proposal to raise the consumption tax to 10%. The USDJPY dropped to 90.89; EURJPY declined 0.1% to 112.62 and AUDJPY dropped 0.1% to 78.96. Japan pledged in its medium-term economic plan today to reduce its corporate tax of 40.7% and nurture the environment and healthcare industries as part of a plan to combat deflation and end two decades of economic stagnation. South Korea's won rose poised for its biggest weekly gain in 13 months as signs the economic recovery is gathering pace fueled overseas demand for the nation's assets and Finance Minister Hyun said today growth will likely exceed 5% this year. The USDKRW dropped 0.6% to 1,206.80, boosting this week's advance to 3.3%.The EURUSD strengthened above 1.24 for the first time in almost three weeks as increased demand at Spain's bond auction eased concern about Europe's debt crisis. The EURUSD traded at 1.2392, EURJPY at 112.72 and EURCHF traded at EURCHF appreciated to 1.3774. The EURUSD traded near a three-week high as Spain sold 3 billion euro of 10-year debt at an average yield of 4.864%, less than the 5.04% that the bonds traded at today before the sale and also sold 479.2 million euro of 30-year debt at 5.908% The Spanish bond auction was better than expected, providing a boost to risk appetite and allowing the EURUSD to break the 1.2350 resistance. Gains in the euro were tempered after Russian President said he can't rule out the collapse of euro as the EU struggles to contain its sovereign debt crisis. He also added that this situation cannot be ruled out suggesting concern over the euro. The EUR pared gains as stocks retreated after a report showed the Philadelphia's Fed factory index slumped to 8 (prev. 21.4, exp. 20) while USDJPY reached the lowest level in three weeks as the initial jobless claims unexpectedly rose by 12,000 to 472,000 (exp. 450,000) to a one- month high. The EURCHF weakened after the SNB said deflationary risks have largely disappeared.