Currency Majors Technical Analysis

Fri, Apr 11 2008, 12:48 GMT

Mataf.net

American Session

EUR/USD - Euro Dollar

1,5829. EUR USD is in a range between 1,5730 and 1,5900. EUR USD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is high. ForexTrend daily, 4H (Mataf Trend Indicator) is in a bullish configuration. 1H ForexSto (Modified Stochastic) indicate a bullish pressure on EUR USD. The price should continue to move in Bollinger bands. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,5850 - 1,5900

Supports

1,5800 - 1,5725

more information on EUR/USD - Euro Dollar Click Here

USD/CAD - US Dollar Canadian Dollar

1,0187. USD CAD made a false break and continues the actual trend.. The volatility is high. Bollinger bands are flat. Oscillators are neutral. The price should continue to move in Bollinger bands. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,0200 - 1,0220

Supports

1,0155 - 1,0130

more information on USD/CAD - US Dollar Canadian Dollar Click Here

USD/JPY - Dollar Yen

101,13. USD JPY moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is high. Oscillators are neutral. The price should continue to move in 100,00 / 103,00 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

101,60 - 102,50

Supports

100,80 - 100,00

more information on USD/JPY - Dollar Yen Click Here

GBP/JPY - British Pound Yen

199,49. GBP JPY moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is high. Bollinger bands are deviated. Oscillators are neutral. The price should continue to move in 198,00 / 201,60 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

200,35 - 201,60

Supports

199,30 - 198,00

more information on GBP/JPY - British Pound Yen Click Here

EUR/JPY - Euro Yen

159,90. EUR JPY is in a range between 159,00 and 161,50. EUR JPY moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is high. Oscillators are neutral. The price should continue to move in 159,00 / 161,50 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

160,65 - 161,50

Supports

159,75 - 159,00

more information on EUR/JPY - Euro Yen Click Here

IMF: Asian Countries Should Prepare Crisis Contingency Plans

Fri, Apr 11 2008, 15:17 GMT
http://www.djnewswires.com/eu

IMF: Asian Countries Should Prepare Crisis Contingency Plans

   By Tom Barkley
  Of DOW JONES NEWSWIRES 

WASHINGTON -(Dow Jones)- Asian countries should prepare "contingency plans" in case the global financial crisis spills over into the region, an official from the International Monetary Fund said Friday.

"Given the risks that we're seeing in global financial markets, I think monetary and regulatory authorities around the region need to monitor financial institutions and financial markets carefully and think about how they would cope with further pressures there," said David Burton, director of the IMF's Asia and Pacific Department.

Preparations should be made for providing liquidity and bank capitalization, while regulatory frameworks should also be reviewed over the medium term, he said.

Asia hasn't been immune to the financial market turmoil, but so far there haven't been any signs of a "significant credit squeeze," he said.

The economic outlook remains "quite favorable," he said, but risks are "tilted" to the downside.

The Chinese government's upward revision Thursday of its 2007 growth estimate to 11.9% from 11.4% will likely alter the IMF's forecasts for 2007 and 2008 for both China and the region a little, but "won't change the overall picture," he said.

The IMF's growth estimate for China, released earlier in the week, is 11.4% for 2007 and 9.3% for 2008. The 2008 forecast was slashed by 0.7 percentage points from the fund's January estimate. The IMF expects emerging Asian countries to grow 7.6% in 2008 and 7.9% in 2009.

"At the same time that growth is starting to slow, inflation is rising significantly across the region," said Burton, adding that the price pressures constrain how much central banks can ease.

Forex - Dollar struggles as risk appetite falls

Fri, Apr 11 2008, 15:08 GMT
http://www.afxnews.com

LONDON (Thomson Financial) - The U.S. dollar has been struggling against the yen as risk appetite has fallen following a slide in US stocks, prompted by weak earnings at the world's biggest industrial conglomerate General Electric Co.

GE's profits warning raised fears on the stock markets that the credit crunch is severely impacting the manufacturing sector in the US and is not just a concern among finance companies.

A worse than expected survey into US consumer confidence stoked concerns further. Sentiment, as measured by the Reuters/University of Michigan index, fell to 63.2 in early April from a reading of 69.5 in late March. Economists polled by Thomson's IFR Markets had expected sentiment to fall to 68.0.

"This has fuelled fresh losses in dollar/yen, which has fallen to new session lows of 100.63," said Rhonda Staskow, analyst at Thomson IFR Markets.

Adding to the pressure has been a fall in US ten-year bond yields to session lows of 3.451 percent, Staskow said.

"The US 2-year yield spread over JGBs has collapsed to 113 basis points today, down from 124 basis points yesterday and this is adding to the dollar/yen selling pressure," said Staskow.

The market's main point of interest is this weekend's G7 meeting of finance ministers and central bankers in Washington.

Analysts said that with the focus likely to be on improving liquidity conditions to help ease the economic impact of the credit crunch, currency issues are likely to take a back seat.

Moreover, market participants noted that China is allowing its currency, the yuan, to appreciate relatively quickly -- at an annualised rate of 18 percent in the first quarter of the year.

In addition, a weak dollar will support exports from the near recessionary US and that a strong euro will help dampen down inflationary pressures in the euro zone, to the likely relief of the ECB, which yesterday kept borrowing costs unchanged, in contrast to the Bank of England.

Thursday's comments from Jean-Claude Trichet, the European Central Bank's president, that he deplores volatility in currency markets suggest that the Europeans will at least bang the drum for tighter language in the communique. Overnight, the euro climbed to a new all-time high of 1.5895 dollars.

Despite Trichet's concerns, the U.S. is unlikely to agree to any tougher language and may note that the dollar's rate of collapse has stalled.

"If the G7 fails to harden its language at least on FX volatility then the knee jerk reaction on Monday would likely be to sell the dollar," said Benedikt Germanier, currency strategist.

"Trichet's comments that he deplores FX volatility suggest that at least the Europeans will be arguing for tighter language," he added.

Elsewhere, the euro struck a new all-time high of 0.8037 pounds amid ongoing concerns about the state of the UK economy following yesterday's Bank of England quarter point rate cut.

London 3.40 p.m. London 8.58 a.m.

U.S. dollar

yen 100.91 down from 101.68

Swiss franc 0.9995 down from 1.0017

Euro

U.S. dollar 1.5831 up from 1.5830

yen 159.78 down from 161.00

Swiss franc 1.5831 down from 1.5864

pound 0.8031 up from 0.8009

Pound

U.S. dollar 1.9701 down from 1.9756

yen 199.00 down from 201.03

Swiss franc 1.9703 unchanged 1.9803

Australian dollar

U.S dollar 0.9304 down from 0.9328

pound 0.4722 up from 0.4720

yen 93.97 down from 94.95

ECB's Weber Sees No Room At All To Discuss Interest Rate Cut

Fri, Apr 11 2008, 14:51 GMT
http://www.djnewswires.com/eu

ECB's Weber Sees No Room At All To Discuss Interest Rate Cut

WASHINGTON -(Dow Jones)- European Central Bank governing council member Axel Weber said Friday he doesn't share the International Monetary Fund's view that there is room for an interest rate cut by the central bank, as the fund underestimates upward pressures on prices.

Weber, who is also president of the Deutsche Bundesbank, told reporters ahead of the Group of Seven leading industrialized nations' meeting of finance officials in Washington that the global economy is still in a robust state and the euro-zone and German economies are in a better shape than that of the U.S.

"There is no leeway at all to discuss a rate cut," Weber said. Inflation in the euro zone is likely to have peaked in March - a preliminary estimate for the month showed consumer inflation at an annual clip of 3.5% - but the consumer price index is expected to stay above 3% for most of the year before falling below 3% toward the end of the year.

On the growth outlook, Weber said that the IMF has focused too strongly on a risks scenario and a possible impact of the financial crisis on the world economy. He stressed that the outlook is too pessimistic.

Speaking at the same briefing, German Finance Minister Peer Steinbrueck also said that the IMF's growth outlook is too pessimistic.

In its World Economic Outlook report Wednesday, the IMF forecast 1.4% growth for Germany for this year and only 1.0% for 2009. In October, the IMF in its economic outlook report forecast 2.0% real gross domestic product growth while in its annual economic policy consultation on Germany from February, it only forecast 1.5% growth for the country.

The IMF's most recent prediction is less than the 1.6%-1.7% Steinbrueck forecasts for 2008 German economic growth.

For the euro zone, the IMF now forecasts 1.4% growth for 2008 and 1.2% for 2009.

Steinbrueck reiterated that there is no reason to cut the government's 2008 growth forecast of 1.7%.

Looking ahead at 2009, Steinbrueck said it is currently hard to predict the country's economic performance as the financial crisis will "to a certain extent" hurt the German economy, albeit to a lesser extent than it will the U.S. economy.

"The U.S. are facing a recession," Steinbrueck said.

Steinbrueck also said he can't follow the IMF's recent estimate that the financial market crisis might lead to potential losses from write-downs of bad debt approaching $1 trillion, particularly since in February it estimated the potential losses to reach around $400 billion.

Asked whether the weak U.S. dollar will play a role in the G7 discussions, Steinbrueck said that it would, but behind closed doors He said that a euro trading at $1.60 "will massively touch upon German economic interests."

His comments come as Germany's economy over the recent years has strongly depended on export growth. In the past, Steinbrueck has been known for saying he "loves" the strong euro, but he hasn't repeated such comments in recent months.

Currency Majors Technical Analysis

Thu, Apr 10 2008, 05:06 GMT

Mataf.net

European Session

EUR/USD - Euro Dollar

1,5843. EUR USD broke 1,5800 resistance. EUR USD is in a consolidation after the last bullish movement. The volatility rises. Bollinger bands are tightened. ForexTrend 1H, 4H, daily (Mataf Trend Indicator) is in a bullish configuration. The price should find a resistance below 1,5860. The consolidation should continue. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,5860 - 1,5890

Supports

1,5800 - 1,5740

more information on EUR/USD - Euro Dollar Click Here

GBP/USD - British Pound Dollar

1,9778. GBP USD is in a consolidation after the last bearish movement. The volatility is low. ForexTrend 4H (Mataf Trend Indicator) is in a bearish configuration. The consolidation should continue. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,9790 - 1,9850

Supports

1,9725 - 1,9650

more information on GBP/USD - British Pound Dollar Click Here

USD/CAD - US Dollar Canadian Dollar

1,0177. USD CAD is in a consolidation after the last bullish movement. The volatility decreases. Bollinger bands are tightened. ForexTrend 1H (Mataf Trend Indicator) is in a bullish configuration. The price should find a support above 1,0160. The uptrend should continue to gather momentum. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,0200 - 1,0220

Supports

1,0160 - 1,0110

more information on USD/CAD - US Dollar Canadian Dollar Click Here

USD/CHF - Dollar Swiss Franc

0,9967. USD CHF broke 1,0050 support. The volatility is high. Bollinger bands are parallel and form the trend. ForexTrend 1H (Mataf Trend Indicator) is in a bearish configuration. 1H, 4H ForexSto (Modified Stochastic) indicate a bearish pressure on USD CHF. The downtrend should continue to gather momentum. The target is expected at 0,9850 (115 pips).

Resistances

1,0030 - 1,0110

Supports

0,9950 - 0,9850

more information on USD/CHF - Dollar Swiss Franc Click Here

USD/JPY - Dollar Yen

100,94. USD JPY broke 101,50 support. The volatility is high. Bollinger bands are parallel and form the trend. 1H, 4H ForexSto (Modified Stochastic) indicate a bearish pressure on USD JPY. The downtrend should continue on 99,00 (195 pips) support.

Resistances

101,50 - 102,00

Supports

100,80 - 100,30

more information on USD/JPY - Dollar Yen Click Here

Daily Forex Technical Report − Yen Steals the Show ahead of ECB & BoE

Thu, Apr 10 2008, 08:12 GMT
by ActionForex.com Team

ActionForex.com

Action Insight Daily Report

Yen Steals the Show ahead of ECB & BoE

The Japanese yen steals the show from ECB & BOE today and is indeed the biggest mover so far, boosted by new that Singapore unexpectedly set a higher trading range for its currency. Note that we've been pointing out the loss of upside momentum in yen crosses as well as the possibly that short term tops are around the corner, if not already formed. Note that USD/JPY and GBP/JPY has taken out some intraday support level already. Further weakness in EUR/JPY will strengthen the case that yen's strengthen has come back broadly.

EUR/GBP hits another record high of 0.8026 on expectation of closing rate gap between ECB and BOE after today's announcements. ECB is widely expected to keep rates unchanged at 4.00% today. Given re-emergence of inflation risks, which saw flash estimate of Eurozone CPI hitting a new high of 3.% in Mar, far above ECB's target of 2%, Trichet is expected to maintain the hawkish stance in the post meeting press conference. Improvement is business confidence, which is shown in Germany's Ifo Index's improvements from Jan's 103.4 to Mar's 104.8 is also giving the ECB another bullet to be on hold in the near future even though there are still risks to the down side in growth.

On the other hand, BoE is widely expected to cut rates by 25bps to 5.00% today. Recent data showed further deterioration in consumer confidence as well as deepening in housing market recession. However, like other parts of the world, BoE is also facing the problem of re-emergence of inflation risk. Hence even though further rate cuts are still expected from BoE down the road, the pace will likely be unchanged at 25bps per quarter.

Data released earlier saw Australian unemployment climbed from 4.0% to 4.1% in Mar. But the economy added more than expected 14.8k jobs. Japanese trade surplus surged to 1035b in Fe. Machine too orders, on the other hand, fell less than expected by -12.7% mom in Feb, leaving yoy rate at 2.4%. Looking ahead, Trade balance from UK, US and Canada will be released together with jobless claims and Fed budget in US.

More Technical Analysis Reports Here

USD/JPY Daily Outlook

Daily Pivots: (S1) 101.24; (P) 102.03; (R1) 102.59; More.

USD/JPY dives sharply to as low as 100.72 today. Break of the inner rising trend line as well as 101.44 support indicates that whole rebound from 95.77 should have completed with three waves up to 102.94. Intraday bias is now flipped to the downside and further break of 98.55 support will confirm this case and bring retest of 95.77 low. On the upside, above 101.89 will turn intraday outlook neutral again and suggest that another high could be seen before a reversal. Decisive break of 103.59 resistance zone is still needed to indicate underlying upside momentum is still strong.

In the bigger picture, as discussed before, USD/JPY has broken out of multi-year triangle consolidation pattern that started in 1998 at 147.68. The decline from 124.13 has met 76.4% retracement of 79.75 to 147.68 at 95.78 so far. Some support is seen at this level. But still, there is no sign of reversal yet. Also, the structure, of the current fall from 124.13 argues that USD/JPY is still in the middle of a larger down trend only.

Medium term outlook remains bearish as long as 103.59 cluster resistance (61.8% retracement of 108.59 to 95.77 at 103.69) holds. Sustained trading below 95.78 will encourage further fall to next important psychological level at 90 first. However, firm break of 103.59 cluster resistance will argue that a medium term bottom is already in place. In such case, stronger medium term rebound should be seen to correct the whole fall from 124.13.

http://www.actionforex.com/contentsection/action-insight/

Dollar fell versus the majors, but rallied against the commodity currencies on Wednesday

Thu, Apr 10 2008, 07:14 GMT
by Cornelius Luca

Global Forex Trading

The dollar fell versus the majors, but rallied against the commodity currencies on Wednesday. On Thursday the Bank of England should cut rates, but this should be priced in – if it doesn’t cable should rally further. The dollar should see weakness today.

Euro/dollar

Euro/dollar surged to a new high on demand for EUR/GBP. My model turned long, and the overbought pair may still climb up today. Initial resistance now comes at 1.5904. The next level is 1.5945. Distant resistance looms at 1.6160 . Immediate support is at 1.5780. Below 1.5675, euro/dollar has distant support at 1.5540.

Oscillators are mixed.

NEAR-TERM: Slightly bullish
MEDIUM-TERM: Mixed
LONG-TERM: Bullish

Dollar/yen

Dollar/yen finally fell on Wednesday but remained stuck in an inside range. My model remains (barely) long. The key level remains 102.30. Initial support is at 101.50. This is followed by 101.25 from a 50-point pivot, which targets 100.75 and 101.75. Immediate resistance is at 102.30 from a 50-point pivot, which targets 101.80 and 102.80. Above 102.95, the next level is at 103.40 from a 50-point pivot, which targets 102.90 and 103.90.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish

Sterling/dollar

Sterling/dollar reversed from a 1 ½-month low to save less than half of Tuesday’s losses. The selling pressure should continue into the BoE action. If it doesn’t cut, cable will explode higher. My model is still short. Initial resistance is at 1.9790. Above 1.9825 there is further resistance at 1.9880. This is followed by 1.9990. Immediate support is now seen at 1.9690. This is followed by 1.9615. Below 1.9585, distant support is at 1.9420.

Oscillators are falling.

NEAR-TERM: Bearish?
MEDIUM-TERM: Mixed with downside bias
LONG-TERM: Mixed

Dollar/Swiss franc

Dollar/Swiss fell to an eight-day low. My model remains barely long. Watch the support at .9976 for the next direction. Immediate now comes at .9975. The next support is at 0.9875. This is followed by 0.9750. Initial resistance is now seen at 1.0110. This is followed by 1.00180 and 1.0251.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bearish

Expectation on rate decision

Thu, Apr 10 2008, 08:27 GMT
by Varengold Bank Research Team

Varengold Wertpapierhandelsbank AG

Today markets are breathing for the ECB’s policy meeting, with analysts expecting the bank to hold interest rates steady. But it’s ECB President Trichet’s press conference which will be the focus of attention and in special how he will acknowledge the impact of the credit crisis on the euro zone economy.

Markets review

In March Australia’s economy created 14.800 jobs, above a consensus forecast for a 10.000 increase. The unemployment rate was 4,1% in March. After the promulgation the AUD hits a session high of 0,9346.

The EUR/GBP hit a record low of 0,8027 on market expectations that the BOE will cut interest rates to 5% from 5,25% later in the day. Sterling came under pressure after data showed that UK consumer morale fell and Britain’s economic growth slowed to 0,5% in the three month to March from 0,6% in the three month to February.

The USD/JPY fell broadly on Thursday. The dollar’s yield advantage has been lost through aggressive rate cuts by the Federal Reserve, which is widely expected to lower interest rates further at its April meeting. Traders mentioned the USD weakness may also be partly related to a CNBC report that Merrill Lynch has to record write-downs between $6 to $6,5 billion and will likely post a quarterly loss.

Technical analysis

USD/JPY

With the beginning of April, the market starts a side movement. The level where the market moves is around 102,00. On his way it uses the whole range between 101,35 and 102,90. The first clear move over one these lines could be a sign for the next trend direction.

EUR/USD

At the end of March stopped the strong up trend. The EUR/USD broke through the lower trend line of the channel. After a short period with down movements, it came back at 1,5854 and established a resistance at this level. Should it break through this level there could be more long potential.

Pivot Points – Daily FX Support and Resistance Levels

Currency	Support 2	Support 1	Pivotpoint	Resistance 1	Resistance 2
EUR / USD	1,5610	1,5720	1,5792	1,5902	1,5974
USD / JPY	100,68	101,22	102,03	102,57	103,38
GBP / USD	1,9587	1,9669	1,9730	1,9812	1,9873
USD / CHF	0,9855	0,9932	1,0050	1,0127	1,0245
AUD / USD	0,9219	0,9253	0,9294	0,9328	0,9369
USD / CAD	1,0082	1,0135	1,0176	1,0229	1,0270
NZD / USD	0,7894	0,7935	0,7970	0,8011	0,8046
EUR / AUD	1,6745	1,6893	1,6977	1,7125	1,7209
EUR / CAD	1,5807	1,5963	1,6053	1,6209	1,6299
EUR / CHF	1,5737	1,5795	1,5875	1,5933	1,6013
EUR / GBP	0,7943	0,7978	0,8001	0,8036	0,8059
EUR / JPY	160,16	160,66	161,07	161,57	161,98
GBP / CHF	1,9552	1,9669	1,9839	1,9956	2,0126
GBP / JPY	199,33	200,19	201,38	202,24	203,43

Daily Calendar & Key FX Events

Date	Time (GMT)	Economic Indicator	Last
10.04.2008	08:30	GB Trade Balance GBP	-7,50
10.04.2008	11:00	GB BoE rate decision	5,25
10.04.2008	11:45	EZ ECB rate decision	4,00
10.04.2008	12:30	USInitial claims	407
10.04.2008	12:30	USInternational trade, $	-58,20
10.04.2008	12:30	CAExports C$	37,98
10.04.2008	18:00	USFederal budget, $	-96,27

US Jobless Claims -53K To 357K In Apr 5 Week; Survey -19K

Thu, Apr 10 2008, 12:45 GMT
http://www.djnewswires.com/eu

US Jobless Claims -53K To 357K In Apr 5 Week; Survey -19K

   By Maya Jackson Randall
  Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The number of idled U.S. workers filing new claims for unemployment benefits fell last week, a week after rising to its highest level in more than two years, a government report said Thursday.

Initial claims for jobless benefits dropped by 53,000 to 357,000, after seasonal adjustments, in the week that ended Apr. 5, the Labor Department said.

Still, the four-week average of new claims, which economists use to smooth out weekly volatility, last week increased by 2,500 to 378,250 from a revised average of 375,750. The last time claims the average was that high was October 8, 2005.

The number of new jobless claims filed nationwide dropped more than Wall Street had expected. Economists surveyed by Dow Jones Newswires forecast a 19,000 dip in new claims for the week ended Saturday.

A Labor Department analyst said there were no special factors.

The previous Labor Department report for the week ended Mar. 29 showed that claims sharply surged to 407,000, a worrisome level according to economists. Even so, new jobless claims for the week ended Mar. 29 were revised up to 410,000, according to the report released Thursday.

The softening labor market has prompted lawmakers on Capitol Hill to call for new measures to prevent the economy from slipping into a severe, prolonged recession. A separate Labor Department report last week showed that the economy lost 80,000 jobs in March, the biggest decline in five years.

Lately, federal officials have acknowledged that a severe downturn is possible as the labor market shows signs of weakness, the credit market faces turmoil and more homeowners go into foreclosure.

The Labor Department report Thursday included the total number of workers drawing unemployment benefits in the week that ended Mar. 29, the latest period for which that particular data are available. The number - known as continuing claims - rose by 3,000 to 2,940,000, the highest level since July 17, 2004. The unemployment rate for workers with unemployment insurance was unchanged at 2.2%.

Indiana reported the biggest increase in new claims the week of Mar. 29, at 7,443; there were layoffs in the automobile, trade and manufacturing industries. Pennsylvania had the biggest decrease, at 2,513; there were fewer layoffs in the electrical equipment, food, transportation and utilities industry.

Forex - Euro stays close to record highs as ECB keeps interest rate unchanged

Thu, Apr 10 2008, 12:40 GMT
http://www.afxnews.com

LONDON (Thomson Financial) - The euro stayed within spitting distance of record highs against the dollar and pound as the European Central Bank lived up to expectations by keeping its base rate unchanged yet again.

Attention now turns to the post rate verdict news conference where ECB chief Jean-Claude Trichet's every word will be scrutinised for any change in the central bank's so far hawkish rhetoric.

Today's much awaited ECB rate verdict brought no surprises with the base rate left unchanged at 4.00 percent and Jennifer McKeown at Capital Economics believes Trichet will continue to sound tough on inflation.

"With inflation hitting a new series-high of 3.5 percent in March and inflation expectations still at high levels, we doubt that the Bank will be ready to signal rate cuts just yet," she said.

Against this backdrop, it is hard to see the euro losing steam. It earlier set a record 1.5912 aginst the dollar.

Also today, the Bank of England reduced its base rate for the third time in five months despite ongoing concerns about rising inflationary pressures -- a factor which weighed on the pound.

The rate cut decision was widely expected and had earlier led the pound to a record low of 0.8028 stg against the euro. Against the dollar though the pound was a touch higher.

Following the rate decisions, the market will also move to focus on this weekend's G7 meeting of finance ministers and central bankers, which takes place in the wake of the IMF's sharp global growth downgrades.

"Speculation remains that some kind of sabre rattling will be seen amongst central bankers who are somewhat disgruntled with the weak dollar and volatile market conditions, so even once today's verdicts are clear there's going to be no let-up in the posturing," said James Hughes, analyst at CMC Markets.

The yuan, meanwhile, rose against the U.S. dollar on views the Chinese government will allow the nation's currency to appreciate to ease inflationary pressures. A strong yuan will lower the costs of imported goods such as oil.

The nation's central bank, the People's Bank of China, freed the yuan from its peg to the dollar in favour of a trade-weighted basket of currencies in July 2005. The bank allows a trading band of 0.5 pct on either side of the central parity rate.

Since July 2005, the yuan has risen 15.5 percent versus the dollar.

China's inflation rate is currently at the highest in nearly 12 years.

London 1.14 pm London 8.28 am

U.S. dollar

yen 100.27 down from 100.97

Swiss franc 0.9910 down from 0.9982

Euro

U.S. dollar 1.5875 up from 1.5844

yen 159.20 down from 160.05

Swiss franc 1.5739 down from 1.5811

pound 0.8011 up from 0.8010

Pound

U.S. dollar 1.9813 up from 1.9770

yen 198.68 down from 199.75

Swiss franc 1.9640 down from 1.9739

Australian dollar

U.S dollar 0.9326 up from 0.9321

pound 0.4705 down from 0.4713

yen 93.47 down from 94.17

Currency Majors Technical Analysis

Wed, Apr 9 2008, 05:05 GMT

Mataf.net

European Session

EUR/USD - Euro Dollar

1,5703. EUR USD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility decreases. Bollinger bands are tightened. ForexTrend daily (Mataf Trend Indicator) is in a bullish configuration. The price should find a support above 1,5700 / 1,5680. If the support is broken then the target will be 1,5650. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,5730 - 1,5770

Supports

1,5680 - 1,5650

more information on EUR/USD - Euro Dollar Click Here

GBP/USD - British Pound Dollar

1,9658. GBP USD is in a consolidation after the last bearish movement. The volatility decreases. Bollinger bands are tightened. ForexTrend 1H, 4H (Mataf Trend Indicator) is in a bearish configuration. 1H, 4H ForexSto (Modified Stochastic) indicate a bearish pressure on GBP USD. The downtrend should continue to gather momentum. The target is expected at 1,9400 (260 pips).

Resistances

1,9710 - 1,9750

Supports

1,9650 - 1,9575

more information on GBP/USD - British Pound Dollar Click Here

USD/CAD - US Dollar Canadian Dollar

1,0147. There is an horizontal range between 1,0120 and 1,0160. Support and resistance are given by Bollinger bands. USD CAD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is low. Bollinger bands are flat. Oscillators are neutral. The price should continue to move in Bollinger bands. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,0160 - 1,0210

Supports

1,0120 - 1,0100

more information on USD/CAD - US Dollar Canadian Dollar Click Here

USD/CHF - Dollar Swiss Franc

1,0138. USD CHF is in a range between 1,0070 and 1,0165. USD CHF moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility decreases. Oscillators are neutral. The price should continue to move in 1,0070 / 1,0165 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,0165 - 1,0220

Supports

1,0120 - 1,0070

more information on USD/CHF - Dollar Swiss Franc Click Here

USD/JPY - Dollar Yen

102,33. USD JPY moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is low. ForexTrend 4H (Mataf Trend Indicator) is in a bullish configuration. The price should continue to move in 101,70 / 103,00 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

102,90 - 103,10

Supports

102,20 - 101,70

more information on USD/JPY - Dollar Yen Click Here

U.S. Forex Market Commentary

Tue, Apr 8 2008, 18:53 GMT

GCI

EURO

The euro came off vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.5675 level and was capped around the $1.5800 figure. The common currency failed to sustain intraday gains and was pulled lower by a very weak British pound. German Deputy Finance Minister Mirow spoke about this weekend’s G7 meeting saying “I am very optimistic that we will agree on a very convincing, substantial response, a joint G7 response to the financial-market developments over the past eight months.” Regarding exchange rates, Mirow added “Every G7 ministerial meeting also addresses exchange rates. Washington won't be any exception.” Traders are closely awaiting the release of the Federal Open Market Committee’s minutes from its most recent policymaking meeting. Most Fed-watchers expect the minutes will evidence concern with the ongoing liquidity and housing crises but will evidence some dissent about reducing official interest rates too much. The FOMC is expected to lower the federal funds target rate again on 30 April, most probably a 25bps monetary easing. Data released in the U.S. today saw February pending home sales fall 21% y/y to 84.6. In eurozone news, dealers await tomorrow’s EMU-13 Q4 GDP data. Euro bids are cited around the US$ 1.5345 level.

JPN/CNY

The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥102.70 level and was supported around the ¥101.75 level. Most traders expect Bank of Japan’s Policy Board to keep its overnight call rate target unchanged at 0.50% tonight. Opposition lawmakers in parliament paved the way for Bank of Japan Deputy Governor Shirakawa to become the new Governor of the central bank ahead of this weekend’s Group of Seven meeting in Washington, D.C. Shirakawa’s nomination will be formally voted on tomorrow but opposition lawmakers also rejected former MoF official Watanabe to become the new Deputy Governor of the BoJ. Finance minister Nukaga today said “I hope to exchange views frankly about the financial instability stemming from the sub-prime loan problem and its impact on the U.S. real economy, as well as on the situation in Europe,” stopping short of suggesting G7 officials would discuss actual intervention to prop up the U.S. dollar. Data released in Japan overnight saw the March economy watchers’ index improve for the second consecutive month with the current conditions measure improving to 36.9. Also, it was reported that corporate failures jumped 20.5% m/m in March. The Nikkei 225 stock index lost 1.49% to close at ¥13,250.43. Dollar offers are cited around the ¥103.65 level. The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥161.70 level and was supported around the ¥160.45 level. The British pound and Swiss franc moved higher vis-à-vis the yen as the crosses tested offers around the ¥204.10 and ¥101.55 levels, respectively. The Chinese yuan appreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 7.0008 in the over-the-counter market, down from CNY 7.0015. Many China-watchers believe China will allow the pair to trade with a CNY 6.99 handle this week to spotlight the yuan’s strong appreciation at the G7 meeting. Data released in China this week saw the Q1 entrepreneur confidence index print at 140.6. Goldman Sachs reported Q1 GDP growth will be around 10% with ongoing inflation pressures.

STERLING

The British pound fell sharply vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.9660 level and was capped around the $1.9925 level. The pair reached its lowest level since 26 February on account of two primary reasons. First, Prime Minister Brown was reported as saying “Because we've got low inflation, we can cut interest rates.” Bank of England’s Monetary Policy Committee is widely expected to reduce its headline repo rate by 25bps to 5.00% on Thursday. Second, Halifax reported house prices fell 2.5% m/m in March – the biggest drop since September 1992. Ongoing negative surveys on U.K. house prices suggest the BoE could have room to reduce borrowing costs. Other data released today saw CML February mortgage completions fall to a record low of 49,200. Cable bids are cited around the US$ 1.9605 levels. The euro moved higher vis-à-vis the British pound as the single currency tested bids around the ₤0.7895 level and was capped around the ₤0.7990 level.

SWISS

The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.0145 level and was supported around the CHF 1.0065 level. Swiss National Bank President Roth was recently quoted as saying Swiss inflation should subside in Q2 and this could lead to a weaker franc. U.S. dollar offers are cited around the CHF 1.0375 level. The euro and British pound came off vis-à-vis the Swiss franc as the crosses tested bids around the CHF 1.5880 and CHF 1.9885 levels, respectively.

Chart of the Day − GBP/USD

Tue, Apr 8 2008, 16:11 GMT
by James Chen

FX Solutions

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; chart patterns in yellow; Fibonacci retracement levels in grey; 50-period simple moving average in light blue.)

4/08/2008 – GBP/USD – Price action on the GBP/USD daily chart, as shown, has just tentatively poked down below a descending triangle. This triangle is outlined on the chart in dotted yellow. Like all triangles, this one represents a price consolidation with progressively diminishing volatility until a break in either direction occurs. Though it is not a rule, this break is most often in the direction of the prevailing trend. In the case of this current Cable daily chart, this tentative break, if there is indeed continued follow-through to the downside, can certainly be seen as moving in the direction of the medium-term downtrend. The bottom line of the triangle has additional significance in that it represents a long-term, oft-visited horizontal support/resistance level, and it also coincides approximately with a key 38.2% Fibonacci retracement level (the low-to-high retracement span being measured from the double-bottom swing low on 2/20/2008 to the top of the triangle on 3/14/2008). In the event of additional downside follow-through on the triangle break, major support resides in the region of the previous double-bottom low (short yellow line) around 1.9350. A breakdown of this further support level will also confirm a major pullback-continuation down.



IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and rec

Currency Majors Technical Analysis

Tue, Apr 8 2008, 05:13 GMT

Mataf.net

European Session

EUR/USD - Euro Dollar

1,5745. EUR USD made a false break and continues the actual trend.. EUR USD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is high. ForexTrend daily (Mataf Trend Indicator) is in a bullish configuration. The price should continue to move in 1,5700 / 1,5800 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,5800 - 1,5840

Supports

1,5700 - 1,5650

more information on EUR/USD - Euro Dollar Click Here

GBP/USD - British Pound Dollar

1,9876. GBP USD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is low. Bollinger bands are flat. Oscillators are neutral. The price should find a support above 1,9845. If the support is broken then the target will be 1,9740.

Resistances

1,9885 - 1,9930

Supports

1,9845 - 1,9740

more information on GBP/USD - British Pound Dollar Click Here

USD/CAD - US Dollar Canadian Dollar

1,0133. USD CAD broke 1,0100 resistance. USD CAD is in a consolidation after the last bullish movement. USD CAD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility decreases. Bollinger bands are tightened. Oscillators are neutral. The price should continue to move in Bollinger bands. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,0145 - 1,0175

Supports

1,0100 - 1,0020

more information on USD/CAD - US Dollar Canadian Dollar Click Here

USD/CHF - Dollar Swiss Franc

1,0103. USD CHF is in a range between 1,0030 and 1,0220. USD CHF moves without trend and swings around exponential moving averages (EMA 50 and 100). Bollinger bands are flat. Oscillators are neutral. The price should continue to move in 1,0030 / 1,0200 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

1,0120 - 1,0165

Supports

1,0065 - 1,0030

more information on USD/CHF - Dollar Swiss Franc Click Here

USD/JPY - Dollar Yen

102,27. USD JPY is in a range between 101,50 and 102,90. The volatility is low. Oscillators are neutral. The price should continue to move in 101,50 / 102,90 range. We won't take a position. The risk/reward ratio is too high to take a position..

Resistances

102,50 - 102,90

Supports

102,05 - 101,50

more information on USD/JPY - Dollar Yen Click Here

Daily Forex and Dow Jones Recommended Levels

Fxtechtrade

Tue, Apr 8 2008, 03:23 GMT
by Nikolajs Serikovs

FXtechtrade

Several words about the EUR/USD future.
Resistance (daily close) : 1.4692 and 1.4884. Then 1.5117, 1.5386, 1.5592 and 1.5660. Break of the letter will lead to 1.5865, 1.7280 и 1.9430.
Support (daily close) : : 1.4366, 1.3972, 1.3770 and 1.3567. Then 1.3411, 1.3263, 1.3106 and 1.2964 (published on 07.11.2007).

Dow Jones :
Resistance(daily close) : 13 567.60, 13 668.74 and 13 792.53. Then 13 972.50, 14 045.62, 14 124.38 and 14 225.63. Break of the latter will lead to 14 298.75, 14 414.06, 14 501.28 и 14 578.94.
Support(daily close): 13 395.94, 13 162.60, 13 038.74 and 12 937.40. Then 12 743.40, 12 652.03, 12 506.84, 12 397.40, 12 214.70, 12 116.25, 12 048.05, 11 913.40 и 11 864.53. Break of the latter will lead to 11 694.36, 11 593.13, 11 328.75 и 11 131.87 (published on May 18, 2007).

Light Crude :
Support (daily close): 87.20, 84.94, 80.43, 71.88, 70.43, 68.06, 66.30, 64.66, 62.33 and 60.97. Then follow 58.27, 57.62, 56.47, 54.34, 52.20 и 50.36. Next levels - 48.32, 46.80 и 45.06.
Resistance(daily close) :95.73, 98.21, 99.45, 101.48 and 102.27 (published on October 30, 2007). Next levels 103.73, 105.32, 106.54, 109.35, 112.56 and 117.28. Then follow 121.50, 124.03 and 126.56 (added on February 29, 2008).

EUR/GBP

Today’s support: - 0.7891 and 0.7874 (main). Break would bring 0.7852, where a correction may be. Then 0.7840. If a strong impulse, we’d see 0.7830. Continuation will bring 0.7820.
Today’s resistance: - 0.7948(main), where correction may be. Break would bring 0.7963. Then 0.7976. If a strong impulse, we would see 0.7988. Continuation will bring 0.7995 and 0.8008.

AUD/USD

Today’s support: - 0.9236 and 0.9223 (main). Break will give 0.9210, where a delay is possible. Then 0.9186, where a correction could be. If a strong impulse, we would see 0.9177, where a correction can be. Continuation will give 0.9158.
Today’s resistance: - 0.9293 and 0.9314(main). Break would give 0.9327 where a correction may be. Then 0.9340. If a strong impulse, we would see 0.9364. Continuation will give 0.9385.

DOW JONES INDEX

Today’s support: - 12 573.28, 12 551.13, 12 526.88 и 12 504.37(main), where a delay and correction may happen. Break of the latter will give 12 476.25, where correction also can be. Then 12 454.45. Be there a strong impulse, we would see 12 431.30. Continuation will bring 12 414.37 and 12 403.12.
Today’s resistance: - 12 692.78, 12 729.36 и 12 757.50(main), where a a delay and correction may happen.Break would bring 12 782.11, where a correction may happen.Then 12 801.10, where a delay and correction could also be. Be there a strong impulse, we’d see 12 830.63. Continuation would bring 12 859.45 and 12 870.00.

Majors pull back from USD in anticipation of central bank announcements this week

Tue, Apr 8 2008, 01:46 GMT
by Easy Forex Team

Easy Forex

Majors pull back from USD in anticipation of central bank announcements this week

U.S. Dollar Trading (USD) strengthened against the major currencies overnight, joining the equity markets in shaking off last week’s soft U.S jobs data as news that America’s largest savings and loan bank, Washington Mutual, will be receiving a $5 billion capital injection from equity group TPG. Whilst acting like a shot of confidence in the market, U.S consumer credit rose by US$5.16 billion for the month of February. However, this was below the expected amount of US$5.5 billion so there may be indications the Federal Reserve’s drastic easing of monetary policy is beginning to flow through the economy. The NASDAQ lost 6 points (-0.3%) whilst the Dow Jones had a volatile day after being up 124 points at one stage, before closing 3 points up. Oil prices surged almost 3% on Monday, up $2.86 a barrel to US$109.09 amid supply concerns following a large refinery fire in Finland over the weekend. Not much data coming out from the U.S as eyes are beginning to look ahead to the weekend’s G7 meeting to see what plans will come out to help fight the ongoing credit crisis.

The Euro (EURO) dropped slightly against the greenback partly due to the increased sentiment around the U.S following Washington Mutual’s capital injection. The EURUSD traded at a high of 1.5736 and a low of 1.5628, before closing in New York at 1.5704. Looking ahead, the focus is on the ECB rate announcement on Thursday, with expectations the bank will maintain its current rate at 4.0%, particularly following the German Industrial Output data release on Monday which saw a growth of 0.4%, this after forecasts of -0.5%, indicating the Euro is remaining solid.

The Japanese Yen (JPY) traded sideways throughout Monday following the U.S’ slight recovery. The USDJPY had a high of 102.65 and a low of 101.35 before closing at 102.42 in New York. The big announcement for Tuesday is the BoJ rate announcement with forecasts expecting the bank to maintain its current stance of 0.5%.

The Sterling (GBP) weakened overnight as speculation grows the BoE will cut interest rates on Thursday to help stimulate the slowing economy. The GBPUSD traded at a high of 1.9951 and a low of 1.9836 before closing out a 1.9867 in New York.

The Australian Dollar (AUD) had a volatile day as news of Australia’s worse than expected trade deficit seen at -$3.29 billion, outstripping expectations of -$2.5 billion, caused the Aussie Dollar to bottom out at 0.9180 before gaining momentum in New York on the back of an increasing investor risk appetite for high yielding assets. The AUDUSD traded at a high of 0.9283 and a low of 0.9180 before closing at 0.9263 in New York trading.

Gold (XAU) rose on Monday following an increased interest from commodity focused investors along with tracking oil’s inflating price. Prices rose US$13.60 an ounce (1.5%) to US$926.80 a barrel.

TECHNICAL COMMENTARY

Euro – 1.5697
Initial support at 1.5628 (Apr 7 low) followed by 1.5510 (Apr 3 Low). Initial resistance is now located at 1.5774 (Apr 4 high) followed by 1.5787 (Apr 1 high).

Yen – 102.58
Initial support is located at 1021.27 (38.2% retracement of the 98.56 to 102.95 advance) followed by 100.24 (61.8% retracement of the 98.56 to 102.95 advance). Initial resistance is now at 102.95 (Apr 3 high) followed by 103.59 (Mar 11 high).

Pound – 1.9880
Initial support at 1.9730 (Apr 1 low) followed by 1.9722 (Mar 5 low). Initial resistance is now at 1.9957 (Apr 7 high) followed by 2.0048 (Apr 4 high).

Australian Dollar – 0.9259
Initial support a 0.9177 (Apr 7 low) followed by 0.9100 (Apr 4 low). Initial resistance is now at 0.9285 (Apr 7 high) followed by 0.9290 (61.8% retracement of the 0.9499 to 0.8953 decline).

Gold – 920.40
Initial support at 900.50 (Apr 4 low) followed by 888.20 (Apr 3 low). Initial resistance is now at 929.40 (Apr 7 high) followed by 940.60 (Mar 31 high)

Oil slightly lower in Asia after near-record surge

Tue, Apr 8 2008, 03:42 GMT
http://www.afxnews.com

SINGAPORE (Thomson Financial) - World oil prices were slightly lower in Asian trading on Tuesday after comments by the OPEC cartel and an inflow of investor money helped prices surge to near-record levels.

In morning trade, New York's main oil contract, light sweet crude for delivery in May, dropped 23 cents to $108.86 per barrel.

The benchmark contract closed $2.86 higher at $109.09 on Monday in New York after touching an intraday high of $109.48.

Brent North Sea crude for May fell 16 cents to $106.98 a barrel, after settling at $107.14 on Monday in London.

New York crude hit a record intraday high of $111.80 on March 17 on the back of a weak U.S. dollar and choppy world financial markets.

London Brent scored a historic peak of $108.02 earlier in March.

Investors "buying into commodities" are pushing up prices, said David Johnson, an oil analyst at Macquarie Research in Hong Kong.

The market was mostly driven by sentiment, and investors were now "nervous about shortages to some extent," said Johnson.

Over the weekend, the secretary general of the Organisation of the Petroleum Exporting Countries (OPEC), Abdullah al-Badri, rejected calls for an increase in the cartel's crude output, saying that non-fundamental factors were to blame for current high prices.

"At the moment there is enough oil in the market and no need to change OPEC's output," Badri said in Tehran late Saturday.

Eric Wittenauer at Wachovia Securities said energy prices had fresh momentum, which has brought speculative cash back into the market.

The OPEC cartel, which produces 40 percent of global oil supplies, maintained its output at 29.67 million barrels per day at its last meeting in March.

Japan Mar Corporate Bankruptcy Cases Up 23.0% On Year

Tue, Apr 8 2008, 04:35 GMT
http://www.djnewswires.com/eu

Japan Mar Corporate Bankruptcy Cases Up 23.0% On Year

TOKYO (Dow Jones)--Japanese corporate bankruptcies rose 23.0% on year in March to 1,127 cases, a new high, private credit research agency Teikoku Databank Ltd. said Tuesday.

The result marked the highest figure since the survey first started being conducted in April 2005.

The think tank said 45 firms went out of business in March due to rising crude oil prices, sharply up from 11 in the same month a year earlier. The number of failed construction companies also rose to 307, compared with 241 a year ago.

Bankruptcies "have been on a rising trend for sure," Teikoku said.

Debts left behind by insolvent firms fell 3.6% on year to Y456 billion in March, down for the first time in two months.

Teikoku also said Tuesday that bankruptcies in Japan surged 18.4% on year to 11,333 in fiscal 2007.

Some Japanese economists say if there continues to be a high number of bankruptcies, the worsening labor market will likely stunt consumption growth, which accounts for 55% of Japan's gross domestic product, dragging down the economy across the board.

Japanese government bonds end morning flat to higher after stocks fall

Tue, Apr 8 2008, 03:35 GMT
http://www.afxnews.com

TOKYO (Thomson Financial) - Japanese government bond prices were flat to firmer at the end of the morning session on Tuesday as some investor interest shifted to the safety of bonds after stocks declined.

On the Tokyo stock exchange, the Nikkei index ended the morning session down 0.9 percent at 13,325.01 on cautious trade after the start of the quarterly earnings season in the United States.

But the advance in the bond market was mild ahead of the Bank of Japan's (BoJ) monetary policy decision on Wednesday and the Group of Seven (G7) finance leaders' meeting on Friday.

Investors are widely expecting the central bank to leave its overnight call rate target steady at 0.5 percent, but are focusing on whether the BoJ will downgrade its view on the economy.

"Some hold the view that the BoJ will lower interest rates (in the near future). But in reality it is a question of how many agree with that. So the yield (on the 10-year bonds) is moving in a range of 1.3 percent and 1.4 percent," said Satoshi Okumoto, general manager at Fukoku Mutual Life Insurance.

Meanwhile, investors are waiting to see if the seat of BoJ governor will finally be filled before the weekend G7 meeting.

On Monday, Japan nominated BoJ deputy governor Masaaki Shirakawa for the position after the first two choices were voted down by the opposition.

The opposition party looks likely to back Shirakawa, who spent more than three decades at the BoJ, working his way up to the post of executive director before leaving in 2006 to become a professor at the Kyoto University School of Government.

At midday, the yield on the benchmark 10-year bond was down slightly at 1.335 percent from 1.340 percent late on Monday.

The yield on the two-year note was steady at 0.565 percent, while the yield on the five-year note fell to 0.790 percent from 0.815 percent.

The yield on the 20-year bond dipped to 2.045 percent from 2.055 percent and the yield on the 30-year bond was unchanged at 2.360 percent.

Bond prices move inversely to yields.

The price of the June futures contract for the 10-year bond advanced to 139.75 yen from 139.43 yen late on Monday.

($1 = 102.34 yen)

Thomson Financial Europe AM at a glance share guide: Stocks, oil mixed

Tue, Apr 8 2008, 05:07 GMT
http://www.afxnews.com

LONDON (Thomson Financial) - US SUMMARY: Shares mixed, oil rises

Index Change Percent change

*DJIA 12612.40 +3.00 +0.02

*Nasdaq 2364.83 -6.15 -0.26

*S&P 500 1372.54 +2.14 +0.16

eur-usd 1.5716 +0.0024

Nymex crude

for May 109.09 usd +2.86 dollars

*Monday's close

STOCKS: Stocks started the week with a mixed performance Monday, with many investors moving to the sidelines as they wait for quarterly profit reports.

FOREX: The euro was firmer against the U.S. dollar, but in very rangebound trade as market players stayed on the sidelines ahead of Tuesday's U.S. Federal Reserve minutes and rate decisions in the euro zone and the UK on Thursday.

BONDS: Treasury prices fell in a relatively quiet session as Wall Street digested reports of corporate dealmaking, a bullish sign for the stock market that lessened investors' need for the safety of government bonds.

Investors also seemed to recover from concerns about the job market following Friday's government employment report that showed the biggest monthly decline in jobs in five years.

As of 4:15 p.m. Eastern time, the benchmark 10-year Treasury note fell 22/32 to 99 18/32 with a yield of 3.55 percent, up from 3.47 percent late Friday.

OIL: In oil trading, May futures rose $2.86 to settle at $109.09 a barrel on the Nymex, crude's highest settlement since March 18, as traders shrugged off a slightly weaker dollar and bet that future Fed rate cuts will weaken the greenback.

Oil futures are nearing last month's trading record of $111.80 a barrel after a swoon that twice brought them briefly below $100.

METALS: Gold futures rose sharply after crude oil jumped above $109 a barrel, an inflationary sign that prompted investors to buy the metal as a safe-haven asset. Silver also rose.

Other commodities traded mixed, with copper and heating oil futures rising and agriculture products falling.

Gold for June delivery added $13.60 to settle at $926.80 an ounce on the New York Mercantile Exchange.

Silver for May delivery added 36.5 cents to settle at $18.120 an ounce on the Nymex, while May copper rose 2.5 cents to settle at $3.9795 a pound.

EVENTS:

US Feb housing forecast/pending home sales index

ASIA SUMMARY: Shares, oil lower

Index Change Percent change

Nikkei 225 13298.70 -151.53 -1.13 (0630 GMT)

S&P/ASX 200 5577.80 -47.20 -0.84 (0630 GMT)

Straits Times 3169.07 -12.85 -0.40 (0630 GMT)

Hang Seng 24520.22 -58.54 -0.24 (0630 GMT)

Seoul Composite 1757.16 -16.40 -0.92 (0630 GMT)

BSE Sensex 15704.07 -53.01 -0.34 (0630 GMT)

usd-yen 102.23 -0.19 (0040 GMT)

10-year JGBs 1.335 -0.005 (Intra-day trade)

Brent North Sea

crude (May) 106.98 usd -16 cents (Intra-day trade)

STOCKS: Asian stocks faltered Tuesday, with most regional benchmarks flat or slightly lower following a dull performance on Wall Street at the start

of the first-quarter earnings period.

BONDS: Japanese government bond prices were flat to firmer at the end of the morning session on Tuesday as some investor interest shifted to the

safety of bonds after stocks declined.

FOREX: The U.S. dollar was weaker against major currencies on Tuesday as traders contemplated the future of the U.S. economy as well as the direction

of the euro zone.

OIL: World oil prices were slightly lower in Asian trading on Tuesday after comments by the OPEC cartel and an inflow of investor money helped prices

surge to near-record levels.

METALS: Gold rallied to trade around the $925 mark as investors focused on the weaker dollar and higher oil prices.

At 1652 GMT, spot gold was trading at $924.68 an ounce against $909.80 in late New York trades on Friday. Earlier, the precious metal hit an intraday

high of $927.50.

Copper prices continued to fluctuate near $8,700 as concerns over tight global supplies were offset by a rise in London Metal Exchange monitored

inventories. At 1441 GMT, LME copper for three-month delivery was quoted at $8,652 a tonne against $8,670 at the close Friday, having earlier touched an intraday high of $8,744.

EVENTS:

Bank of Japan starts two-day policy board meeting

Japan's March economy watchers survey

National Australia Bank Q1 business confidence survey

New Zealand Institute of Economics Research Q1 survey of business opinion

Philippines March forex reserves

Hong Kong-listed China Communications Construction FY results

Hong Kong-listed Mengniu Dairy FY results

Hong Kong-listed Shui On Construction FY results

Hong Kong-listed Shun Tak Holdings FY results

Hong Kong-listed China Communications Service FY results

Hong Kong-listed Xingda International FY results

China's CSG Holding Co FY results

China's Sinochem International FY results

Sinopec Shanghai Petrochemical FY results

Sinopec Yizheng Chemical Fibre FY results

Taiwan offer of 100 bln twd, 364-day certificates of deposit

Taiwan's UMC March sales

EUROPE SUMMARY: London shares close at day's high, oil races above $109

Index Change Percent change

*FTSE 6014.76 +67.65 +1.13

*DAX 6821.03 +57.64 +0.85

*CAC 4944.60 +43.72 +0.89

pound-dollar 1.9893 -0.0038 (Intra-day)

euro-dollar 1.5716 -0.0016 (Intra-day)

Brent

crude(May) $107.16 +$2.26 (1502 GMT)

* Monday's close

STOCKS: Leading shares closed at the day's high as Wall Street remained firmer, with miners helping to buoy the FTSE on the back of stronger metals prices and British Energy and Centrica up after reports of bid talk between the groups.

FOREX: The euro was firmer against the U.S. dollar, but in very rangebound trade as market players stayed on the sidelines ahead of Tuesday's U.S. Federal Reserve minutes and rate decisions in the euro zone and the UK on Thursday.

BONDS: European government bonds remained in negative territory all day in very light trade as an appetite for risk returned to the markets, evidenced most keenly in equity markets. Elsewhere, UK gilts were lower even though the Bank of England is expected to

cut borrowing costs on Thursday.

OIL: Oil raced above $109, propelled by perpetual dollar weakness, OPEC's defiance to releasing more oil and as cold US spring

weather sparked heating demand.

METALS:Gold continued higher in London as the dollar remained under pressure following weak U.S. employment figures on Friday. At 1155 GMT, spot gold was trading at $915.95 an ounce against $909.80. In other precious metals, silver tracked gold higher to trade at $17.86 an ounce against $17.76. Platinum was up at $2,026 an ounce against $2,009, while its sister metal

palladium was at $449 an ounce against $439.75.

Ongoing power shortages in key platinum producer South Africa are providing good support for prices, with the market for the white metal expected to be in deficit this year as miners struggle to maintain production levels.

EVENTS:

UNITED KINGDOM

FINALS

888 Holdings

Atlantic Global

CareCapital Group

China Central Properties (15 months)

Cryo-Save

Dawnay, Day Treveria

Development Securities

Energetix

Getmobile Europe

Hansteen Holdings

Havelock

Real Good Food Co

VPhase

xG Technology

AGM

Coal of Africa

First Calgary

International Real Estate

RCG Holdings

EGM

First Calgary

TRADING STATEMENTS

Alterian

PZ Cussons

ECONOMICS

UK CML February full mortgage lending data (0930 BST)

UK DMO auction of 1.2 billion pounds in 1.25 percent index-linked gilts (1100 GMT)

BENELUX

Dutch February industrial sales

Corporate Express AGM

VastNed Retail AGM

VastNed Offices/Industrial AGM

GBL AGM

EASTERN EUROPE

Czech March CPI (0700 GMT)

Czech March unemployment (0700 GMT)

Czech Czech central bank conference on inflation targeting (0700 GMT)

Slovak February industrial and construction output (0700 GMT)

Czech Q1 state debt data (1200 GMT)

Hungary preliminary February industrial production data

Hungary preliminary February foreign trade

Hungary March budget deficit

Norilsk Nickel EGM

Rosneft FY results

EUROPEAN UNION/EURO ZONE

EU's McCreevy speech to FSA insurance sector conference, QE11 Conference Centre, London (0800 GMT)

ECB main refi result (0915 GMT)

EU rules on acquisition by FCC, Porr of Autoput

Ifri thinktank breakfast roundtable on energy unbundling, RWE speaks (0700 GMT-0930 GMT)

EU Commission tax forum, Charlemagne Building (0700 GMT-1530 GMT)

Suez-Tracetebel's Etienne Davignon at tax forum (0700 GMT)

EU's Reding speaks at European Information & Communications Technology Industry Association event (1230 GMT)

EU's Kovacs addresses tax forum (1500 GMT)

ECJ rules on Commission vs Sweden on taxation of beer and wine

ECJ rules on Commission vs Italy on public procurement procedure for helicopters

FRANCE

Eurotunnel FY results (before market opens). Press conference (0700 GMT)

WTO director general Pascal Lamy breakfast debate with AJEF business journalists association (0630 GMT) (Procope cafe, Paris)

GERMANY

March crude steel output (0600 GMT)

LRP annual conference, Mainz (0900 GMT)

EU rules on acquisition by FCC, Porr of Autoput

Ifri thinktank breakfast roundtable on energy unbundling, RWE speaks (0700-0930 GMT)

EU'S Reding speaks at European Information & Communications Technology Industry Association event (1230 GMT)

GREECE

March CPI

EFG Eurobank AGM

MIG EGM

ITALY

Parmalat AGM (1st call)

SCANDINAVIA

Finnish Jan GDP (0600 GMT)

FOEX Pulp & Paper price statistics (0900 GMT)

Bang & Olufsen Q3 results