Stocks rebound on Government Investment Plan
CURRENCY TRADING SUMMARY – 19thSeptember 2008 (00:30GMT)
·U.S. Dollar Trading (USD) in one of the most volatile trading days in history the market ended on an extremely positive tone. Reports filtered through that the US FED, Treasury and Congress will be seeking a comprehensive solution to the financial crisis. News also that the SEC has banned naked short selling of stocks sent the Dow Jones on a 600 point reversal and allowed the USD to pare loses against all majors. On the Data front, Weekly Jobless Claims were slightly more negative than expected at 455K. In the U.S. share markets, the NASDAQ was up 100 points (4.78%) and the Dow Jones was up 410 points (3.86%). Crude Oil closed up $0.72 ending the New York session at $97.88 per barrel.
·The Euro (EUR) Initially gaining sharply as the US market continued to look extremely fragile trading up to the 1.4500 level before consolidating. News of comprehensive action sent the Euro down against the dollar but was able to gain against the JPY as risk appetite picked up. Overall the EUR/USD traded with a low of 1.4278 and a high of 1.4509 before closing the day at 1.4350 in the New York session. Looking ahead, August German PPI expected at -0.4% down form 2.0% m/m in July
·The Japanese Yen (JPY) tracked equities so had an extremely volatile day in what has been a signature of the Yen during the week. US intervention news sent the USD/JPY soaring higher into the US close. Overall the USDJPY traded with a low of 103.97 and a high of 105.80 before closing the day around 105.50 in the New York session.
·The Sterling (GBP) received a boost from very strong retail sales in August released at 1.2% M/M vs. expectations of -0.5%. Traded in a relatively tight range before coming under pressure from USD strength into the US session close. Overall the GDP/USD traded with a low of 1.8090 and a high of 1.8275 before closing the day at 1.8180 in the New York session.
·The Australian Dollar (AUD) tossed and turned with the market sentiment, initially under severe pressure from heavy AUD/JPY selling and mounting stocks losses before reversing sharply into the US close. Gains were broad based and were helped along from buoyant commodities and Gold’s recent gains. Overall the AUD/USD traded with a low of 0.7868 and a high of 0.8098 before closing the US session at 0.8020.
·Gold (XAU impressive gains reached as risk aversion maxed out. US government intervention in the financial markets reversed market direction and gold fell over $80 an ounce. Overall trading with a low of USD$833 and high of USD$920 before ending the New York session at USD$852 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3973 |
1.4073 |
1.4295 |
1.4544 |
1.4617 |
|
USD/JPY |
102.74 |
103.54 |
105.90 |
106.91 |
107.99 |
|
GBP/USD |
1.7736 |
1.7787 |
1.8120 |
1.8277 |
1.8509 |
|
AUD/USD |
0.7675 |
0.7803 |
0.8045 |
0.8097 |
0.8277 |
|
XAU/USD |
774.40 |
838.80 |
856.00 |
910.30 |
915.55 |
·Euro – 1.4295
Initial support at 1.4074 (Sept 16 low) followed by 1.3973 (Sept 12 low). Initial resistance is now located at 1.4544 (Sept 4 high) at followed by 1.4617 (Sept 2 high).
·Yen – 105.90
Initial support is located at 103.54 (Sept 16 low) followed by 102.74 (May 22 low). Initial resistance is now at 106.91 (Sep 15 high) followed by 107.99 (Sept 12 high).
·Pound – 1.8120
Initial support at 1.7787 (Sept 17 low) followed by 1.7736 (Sept 16 low). Initial resistance is now at 1.8277 (Sept 17 high) followed by 1.8509 (Aug 15 high).
·Australian Dollar – 0.8045
Initial support at 0.7803 (Sept 17 low) followed by the 0.7675 (Aug 17, 2007 low). Initial resistance is now at 0.8097 (Sept 18 high) followed by 0.8277 (Sept 12 high).
·Gold – 856
Initial support at 838.8 (Sept 18 low) followed by 774.40 (Sept 17 low). Initial resistance is now at 910.3 (Sep 18 high) followed by 915.55 (Aug 4 high).
