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Equity Markets Soar on Friday

UFXBank Research from UFX Bank at 11/08/09


Daily Review 5/11/2009

USD Dollar (USD) – With continues rally in stocks the Dollar weakened as investors wait for today's payrolls data. Weekly Jobless Claims showed the labor market has enhanced slightly, to 512K vs. 520K expected. Also, the Nonfarm Productivity came out 9.5% better than expected 6.4%. The Equity markets soared, the Dow Jones finished above 10,000 for the first time since late October. The NASDAQ jumped 2.40% and the S&P 500 rose 1.92%. Gold (XAU) ended at $1,090 an ounce and crude oil pulled to levels below $80 a barrel. Today, The Nonfarm Payrolls data expected at -166K vs. -263K previously. The Unemployment Rate is expected at 9.9% vs. 9.8% previously.
EURO (EUR) – The Euro traded near a one week high versus the Dollar. The Euro strengthened after European Central Bank President Jean-Claude Trichet said he will withdraw some emergency liquidity measures. The decision on the interest rate was as predicted unchanged at 1%. Overall, the EUR/USD traded with a low of 1.4810 and with a high of 1.4917. Today, The German Factory Orders is expected at 1% vs. 1.4% previously.
EUR/USD - Last: 1.4866

Resistance 1.491 1.498 1.505
Support 1.4835 1.48 1.476

British Pound (GBP) – The Pound rose against the Dollar for a third day as the Bank of England increased asset purchases less than the forecast of economists, reducing concern policy makers are flooding the market with sterling. The Manufacturing Production and The Industrial Production came out better than expected at 1.7% and 1.6% respectively. The decision on the interest rate was as predicted unchanged at 0.5%. Overall, the GBP/USD traded with a low of 1.6465 and with a high of 1.6633. Today, The Producer Price Index (PPI) Input is expected at 1.6% vs. -0.5% previously.
GBP/USD - Last: 1.6565

Resistance 1.664 1.669 1.676
Support 1.6525 1.6465 1.642

Japanese Yen (JPY) – The Dollar weakened against the Japanese currency as Nikkei dropped but then headed for a rally as investors starting selling the Yen after Risk appetite continues playing against the yen. The pair USD/JPY is moving in a tight range. Overall, USD/JPY traded with a low of 89.99 and a high of 90.85. Today, The Leading Indicators Index is expected at 86.4 vs. 83.2 previously.
USD/JPY-Last: 90.70

Resistance 91 91.3 91.6
Support 90.3 90.25 90.05

Canadian Dollar (CAD) – The Canadian Dollar was near the highest level in more than a week. The pair USD/CAD is moving in a tight range. The focus will be on today's nonfarm payrolls report. The Building Permits came out 1.6% better than expected 1.2%. Overall, USD/CAD traded with a low of 1.0604 and with a high of 1.0680. Today, The Employment Change is expected at 11K vs. 30.6K previously. The Unemployment Rate is expected unchanged at 8.4%.
USD/CAD - Last: 1.0655

Resistance 1.0685 1.0715 1.076
Support 1.0595 1.0545 1.049

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