German IFO props up the Euro, as US New home sales declined to a 13 month low.
CURRENCY TRADING SUMMARY – 27 MARCH 2008 (00:30GMT)
- U.S. Dollar Trading (USD) fell as New Home Sales (Feb) fell for the fourth straight month by 1.8% to a 13 year low as the housing slump continued. In other data, Durable Goods for the month of February declined by -1.7% below expectations. In U.S. share markets the NASDAQ was down 16 pts (-0.71%) whilst the Dow Jones was also lower by 109 pts (-0.88%). Crude Oil spiked by US$4.68 a barrel to US$105.90 on fears of declining oil productions. Fourth quarter GDP figures are expected to come in at 0.6% as previous.
- The Euro (EURO) surged higher on poor US data, and further boosted by strong reading in the German IFO index, as businesses sentiment in the Europe largest economy continued to grow in confidence. In other news, ECB president maintained the banks view on fighting inflationary pressures as their number one agenda. Overall the EURUSD traded with a low of 1.5587 and a high of 1.5833 before closing the day at 1.5832 in the New York session. Gfk Consumer Confidence for the month of April is scheduled for release on Thursday.
- The Japanese Yen (JPY) traded below the key 99.00 once again as export growth unexpectedly accelerated in February as demand from emerging markets helped automakers ride out the U.S. slump. Overall the USDJPY traded with a low of 98.90 and a high of 100.32 before closing the day at 99.32 in the New York session. BoJ member Suda is scheduled to speak at 01:30 GMT on Thursday.
- The Sterling (GBP) was volatile as U.K.‘s Financial Services Authority is rumored to be increasing its scrutiny of the country’s financial institutions following the collapse of mortgage lender Northern Rock Plc. Overall the GBPUSD traded with a low of 1.9928 and a high of 2.0111 before closing the day at 2.0074 in the New York session.
- The Australian Dollar (AUD) also continued its recent rally on a broadly weaker dollar, and a boost in commodities. Overall the AUDUSD traded with a low of 0.9123 and a high of 0.9241 before closing the day at 0.9195 in the New York session.
- Gold (XAU) rallied for a second session Wednesday after the dollar sank and crude oil prices spiked, inflationary signs that pointed investors to the relative safety of precious metals. XAU traded with a low of 935.00 and a high of 951.60.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.5408 | 1.5584 | 1.5820 | 1.5833 | 1.5904 |
| USD/JPY | 98.46 | 98.89 | 99.15 | 100.33 | 101.04 |
| GBP/USD | 1.9849 | 1.9927 | 2.0070 | 2.0111 | 2.0145 |
| AUD/USD | 0.9073 | 0.9122 | 0.9195 | 0.9243 | 0.9290 |
| XAU/USD | 912.02 | 934.80 | 953.50 | 952.00 | 954.03 |
Euro – 1.5820
Initial support at 1.5584 (Mar 26 low) followed by 1.5408 (Mar 25 low). Initial resistance is now located at 1.5833 (Mar 18 high) followed by 1.5904 (Mar 17 low)
Yen – 99.15
Initial support is located at 98.89 (Mar 26 low) followed by 98.46 (Mar 20 low). Initial resistance is now at 100.33 (Mar 26 high) followed by 101.04 (Mar 25 high)
Pound – 2.0070
Initial support at 1.9927 (Mar 26 low) followed by 1.9849 (Mar 25 low). Initial resistance is now at 2.0111 (Mar 26 high) followed by 2.0145 (61.8% retracement of the 2.0398 to 1.9737)
Australian Dollar – 0.9195
Initial support a 0.9122 (Mar 26 low) followed by 0.9073 (Mar 25 low). Initial resistance is now at 0.9243 (Mar 26 high) followed by 0.9290 (61.8% retracement of the 0.9499 to 0.8953 decline)
Gold – 953.50
Initial support at 934.80 (Mar 26 low) followed by 912.02 (Mar 25 low). Initial resistance is now at 952.0 (Mar 26 high) followed by 954.03 (38.2% retracement of the 1032.50 to 905.03 decline)
