GBP/USD holds $1.9740 area, above morning lows at $1.9707. Bids still around $1.9700.

EUR/USD remains around $1.5410. Nearby support and resistance at $1.5390/30 to contain, the trader suggests.

The maker of the iPod Apple Inc announced deals yesterday with an expanded stable of Hollywood studios to start selling new feature films through the online iTunes store, the same day the films are released on DVD; priced at $14.99 and cheaper than most new-release DVDs.

Dynamic Materials Corporation was downgraded to “neutral” from “overweight” by JPMorgan Chase & Co.

Chevron Corp posted a $5.17B profit, as surging oil prices helped its earnings from production but also tightened its margins on refined fuels.

Dolby Laboratories Inc reported second-quarter profit of 49 cents a share, beating analyst estimates.
Sun Microsystems Inc reported a surprise loss, stagnant sales and another round of job cuts raised concern that CEO Jonathan Schwartz's growth plan isn't working.

The insurer Metlife Inc announced its earnings fell 37% in the first quarter as turbulent markets and the plummeting dollar pummeled the insurer's investment portfolio.

Comscore Inc said earnings for 2008 will be at least 75 cents a share, exceeding analyst estimates.

Investools Inc reported first-quarter profit of 17 cents a share, missing estimates.

USD/JPY set stable around Y105.20/30. As noted earlier, area sub Y105.00 seen as support/broken resistance, with stop risk likely under Y104.85/90.

The dollar rose to a five-week high against the euro after a government report showed U.S. employers eliminated fewer jobs in April than economists forecast, indicating the U.S. economy may avoid falling into a recession.
The currency advanced versus the yen, the Swiss franc and the South Korean won as traders speculated the Federal Reserve may be done reducing interest rates. The dollar is headed for a second straight weekly gain against the euro after the Fed cut rates on April 30 and said ``substantial'' easing since September would help foster economic growth.
Futures on the Chicago Board of Trade showed an 86% chance that policy makers will keep the fed funds target unchanged at 2% when they next meet June 25, compared with 80% odds yesterday. The balance of bets is for a decrease of a quarter-percentage point. The Fed cut the benchmark rate from 2.25% this week in its seventh reduction since September.
The dollar has risen 1.5% against the euro this week, its biggest rally since February. It's the first time the U.S. currency has posted two weeks of gains since December. It touched $1.6018 against the euro on April 22, the lowest level since 1999. The U.S. currency is up 1.2% against the yen this week.
The pound was headed for a third weekly gain against the euro, the longest rally since May 2006 (+0.9%).
The European Central Bank will cut its 4% main refinancing rate to 3.75% by the end of September and 3.50% by year-end, according to a survey of economists.
The dollar strengthened today as the Labor Department reported that U.S. payrolls shrank by 20,000 last month following a revised decline of 81,000 in March. The median forecast was for a drop of 75,000.
The currency fell 0.3% against the euro on April 4, when the Labor Department reported that the U.S. lost 80,000 jobs in March, the most in five years.
The dollar rose briefly against the euro on April 30 after ADP Employer Services reported that companies in the U.S. added 10,000 jobs in April.

Michael Woolfolk of Bank of New York Mellon says this week “has been important for financial markets, but especially US stocks and the dollar.” Q1 GDP and non-farm payroll, both better than expected, came at a time market sentiment was already shifting to be less pessimistic about US prospects. “The dollar has had room to rally and indeed may rise further”, Woolfolk says. Euro-dollar support March 24 low) may soon be tested, with a move towards $1.5000 possible. “Is it achievable? Absolutely!” he says. Next week's US data line-up (ISM non-mfg, pending home sales etc.) is unlikely to turn the current trend.

Profit-taking on dollar seen EUR/USD to rebound to current $1.5430. Resistance likely in the $1.5480 area, with offers eyed at $1.5500.

From Lehman: “Nothing in Payrolls report changes our view that the trend in payrolls is lower and that the labor market will continue to be soft for some time adding additional pressure on an already strained US consumer.”

Stocks initially rallied Friday after a report showed that employers cut fewer jobs from their payrolls in April than expected, adding to hopes that the economy is steadying.
Before the bell Labor Department released Payrolls report. Employers cut 20,000 jobs from their payrolls in the month after losing 81,000 in the previous month. Economists expected 75,000 job cuts. The unemployment rate, generated by a separate survey, fell to 5% from 5.1% in the previous month. Economists thought it would rise to 5.2%.
The US central bank said it will join central banks in Europe in building on recent efforts to manage the global credit crisis. The Fed will boost the amount of emergency reserves it makes available to U.S. banks to $150 billion in May, up from $100 billion in April.

USD/JPY eased to near Y105.20 as stocks retreats. Earlier rate printed high on Y105.70. Traders mention support/bids around the Y104.85/00 zone.

Tom Fitzpatrick currency strategyst at Citigroup: “The underlying non-farm number was way better than the average market expectations. However, while it may have an effect on the day, it'd be dangerous to extrapolate that number into the broader picture... it's a lagging indicator.”

EUR/USD fell to $1.5358 before rebounding to current levels on $1.5404. traders say profit-taking on dollar longs could give the euro a better boost. Bids remain $1.5350 with stops below.

1. Yes.............................21%;
2. Yes vs. Europe; Not vs. Asia... 46%;
3. No .............................33%.

Stocks continue to trade in higher ground, extending yesterday's strong gains. The stock market received an extra boost from a better than expected increase in March's factory orders.
March's factory orders climbed 1.4%, which is better than the 0.2% increase that economists expected. Last month's orders were revised from a 0.9% downturn to a 1.3% downturn. Tech (+0.3%) is underperforming the major economic sectors. Although, Yahoo! (YHOO 27.65, +0.84) is providing a bit of leadership to the sector. Shares of Yahoo! are trading higher in response to word that Microsoft (MSFT 29.43, +0.03) may be taking its bid to acquire Yahoo! to shareholders, according to The Wall Street Journal.

EUR/USD $1.5525, $1.5500, $1.5950, $1.6000, $1.5300
USD/JPY Y105.00, Y104.00, Y103.50, Y106.50
AUD/USD $0.9305
USD/CAD C$1.0175, C$1.0260, C$1.0130, C$1.0060

Stocks futures pointed to a very positive open early Friday, after a government report painted an unexpected upbeat picture of the labor market.With less than an hour before the market open, S&P and Nasdaq futures were both in positive territory, with a comparison to fair value pointing to a slightly lower start for Wall Street.
According to the Labor Department, there was a net loss of 20,000 jobs in April, less than the revised loss of 81,000 jobs in the March and lower than the net loss of 75,000 jobs forecast by economists surveyed by Briefing.com. As a result, the unemployment rate dropped to 5% from 5.1% in the March report.
Techs could come under pressure after Sun Microsystems reported an unexpected quarterly loss and said it plans to cut up to 2,500 jobs. The company's shares plunged 15% in after-hours trading.
In a sign of further problems in the financial sector, insurer MetLife announced its earnings fell 37% in the first quarter as turbulent markets and the plummeting dollar pummeled the insurer's investment portfolio. Shares of one of the nation's most widely-held stocks fell 1.3% in after-hours trading.

Skidded under $1.5400 for lows under $1.5390 in knee-jerk reaction to better than expected NFP data and improvement in headline. Slide absorbs nearby demand interest and perhaps a few stops but bids in place at $1.5370 cushion. More demand $1.5350 but traders say $1.5360 pivotal.

- The operations will be conducted every second week with a maturity of 28-days
- It is intended to continue the provision of dollar liquidity for as long as the Governing Council considers it to be needed in view of the prevailing market conditions.

Currency strategists at UBS says "Non-farm payrolls take centre stage today and we expect the employment report to add to the evidence that a consumer-led recession is underway. In the current stage of the cycle, payroll gains risk being overstated initially. Hence we are not only forecasting -100k (market -75k, prev -80k) but we also forecast a 0.2% rise in the unemployment rate to 5.3% (from 5.1%, market 5.2%). Unless non-farm payrolls shows a massive decline in excess of 100k, figures will likely remain consistent with the view that the US will enter, or has entered, a mild recession."

the next data was issued

06:00 Germany Retail sales (March) real unadjusted -0.1% -1.6%
06:00 Germany Retail sales (March) real unadjusted Y/Y -6.3% -0.3%
07:55 Germany PMI (April) seasonally adjusted 53.6 53.6 55.1
08:00 Е15 PMI (April) 50.7 50.8 52.0

The dollar steadied versus the euro on Friday as investors looked ahead to a key non-farm payrolls report for clues on whether the economy is strong enough to enable a pause in the rate-cutting cycle.

The Federal Reserve cut rates to 2 percent on Wednesday, as most expected, and signalled that its next move would depend on developments in financial markets and the economy.

That puts the spotlight firmly on the 1230 GMT employment data release, with a loss of 80,000 jobs forecast for April.

A stronger reading would strengthen expectations that the Fed's aggressive interest rate cutting cycle might be over after eight months and 325 basis points of easing. But a loss of even more jobs could bring an abrupt end to the dollar's recovery.

EUR/USD: Selling continued into early Europe to extend the base to $1.5441, though rate was unable to mount a challenge on Thursday's $1.5430 base, recovering back to the $1.5480 area before a period of consolidation. Another leg higher followed later in the morning, euro-dollar advancing to $1.5500 where momentum faded, with rate ending the morning around $1.5480, subsequently easing further in early US dealing to $1.5450. Offers $1.5500, stronger $1.5520/30, offers $1.5550, bids $1.5440/30
GBP/USD: Opened early Europe at $1.9753. Release of negative Halifax house price data weighed heavily on the pound, cable dropped back to $1.9724. Move quickly reversed allowing cable to push above $1.9800 and on to an eventual high of $1.9897.Cable bids $1.9820, $1.9800. Offers $1.9880, $1.9895/910.
USD/JPY: European dealing opened with dollar-yen pushing back towards the overnight high, momentum strong enough to take this level out, dollar-yen also able to take out option-related supply on approach to Y105.00 en-route to fresh two-month highs at Y105.05. Rate soon eased back, slipping below Y104.60 later in the morning and trading around Y104.70 going into the US session. Stops Y105.10, offers Y105.40/50, Y105.90/00, bids Y104.30, Y103.70/60

US data starts at 1230GMT, when non-farm payrolls are expected to fall 75,000 in April after declines in the previous three months. Theweakness in hiring is obvious, as suggested by the recent upticks in the jobless claims data. The unemployment rate is expected to rise furtherto 5.2% after rising 0.3 percentage point in the previous month. Hourlyearnings are expected to rise a trend 0.3%, while the average workweekis expected to fall back to 33.7 hours after rising to 33.8 hours inMarch. At 1400GMT, factory new orders are expected to rise 0.3% on the already announced 0.3% drop in durable goods new orders. Non-durables orders could get a price-related boost from energy-related items. Finally, at 1620GMT, President George W. Bush is due to speak about theUS economy, in Maryland Heights, Missouri.

Economist Annalisa Piazza at Newedge says breakdown in ISM "confirms that the US manufacturing sector is sleepwalking through Q2 and no turn-around in the business cycle is expected soon. The production sub-index remained below the 50-neutral level for the second consecutive month... New orders were stable at the very weak 46.5 level."

The dollar hit a two-month high against the yen on Friday after U.S. data the previous session reinforced expectations the Federal Reserve will keep interest rates on hold for a while.
Data on Thursday showed manufacturing activity shrank less than expected in April and consumer spending rose in March, easing investor concerns about the depth of any U.S. economic recession and making U.S. assets look more attractive.
"There is speculation that foreigners are now heading back into buying U.S. assets and this has seen the dollar rally over the last couple of weeks," said Adam Myers, markets strategist at Credit Suisse. "The market has bought a lot of dollars in thin trade so if the payroll number comes in weaker than expected then people in long dollar positions could be vulnerable as we could see a sharp dollar sell-off," Myers said.
The yen was pressured by strong equity markets with the Nikkei 225 closing at its highest in nearly four months Investors are now looking to the monthly U.S. payrolls report later in the session to see how sustainable the recent rally in the dollar is likely to be. Economists forecast a drop of 80,000 jobs last month and a rise in the unemployment rate to 5.2 percent from 5.1 percent.
"Our interpretation of the statement is that the FOMC now prefers to take a pause to assess how the economy digests the massive stimulus that has been provided," said SEB in a note to clients.
Falling Fed interest rates had driven the dollar to record lows against the euro, especially as the European Central Bank has been steadfast in saying rates are on hold.However weak euro zone data has revived speculation of a rate cut. The drop in gold and oil prices has added fuel to the dollar's gains partly as investors demanded higher compensation in those commodities for the U.S. currency's eroding value. Gold was holding near four-month lows at $853.00.

Resistance 3: Y106.00
Resistance 2: Y105.30
Resistance 1: Y105.00
Current price: Y104.68
Support 1: Y103.90

Support 2: Y103.30

Support 3: Y102.60

Comments: Dollar is around recent highs on Y105.00 with further resistance comes at Y105.30 and then – on Y106.00. Support is around Y103.90, further – on Thursday’s low on Y103.30 with a break under will open the way to Apr 22-23 lows on Y102.60/70.

Resistance 3: Chf1.0620
Resistance 2: Chf1.0570
Resistance 1: Chf1.0530

Current price: Chf1.0482

Support 1: Chf1.0430
Support 2: Chf1.0360

Support 3: Chf1.0330

Comments: Techs is steady. Strong resistance is around Fibo level on Chf1.0530/40 (61.8% of Chf1.1110 - Chf0.9640 decline). Higher Chf1.0570 may be tested. Support around Chf1.0430 and Chf1.0360.

Resistance 3: $2.0050
Resistance 2: $1.9960
Resistance 1: $1.9900
Current price: $1.9866
Support 1: $1.9720Support 2: $1.9670
Support 3: $1.9610
Comments: Cable is going to resistance at $1.9900/ Higher level comes at Tuesday’s high $1.9960 with a break above will target $2.0050 (Apr 04 high) and stronger – on $2.0190 (Mar 27 high). Strong support comes at $1.9720, with a break under widens the correction toto Friday’s low on $1.9670.

Resistance 3:$1.5640
Resistance 2: $1.5550

Resistance 1: $1.5500
Current price: $1.5496

Support 1: $1.5430
Support 2: $1.5400
Support 3: $1.5340

Comments: Euro gets to resistance at $1.5500/50 zone. Stronger level is around yesterday's high $1.5640. Support is around $1.5430, stronger – on $1.5400 with a break down will widen the correction to $1.5340. Resistance comes at $1.5500/50 zone. stronger around yesterday's high $1.5640.

Resistance 3: $2.0050
Resistance 2: $1.9960
Resistance 1: $1.9900
Current price: $1.9870
Support 1: $1.9832Support 2: $1.9660
Support 3: $1.9610
Comments: Techs on pound hasn’t changed. Resistance comes at $1.9900 and at Tuesday’s high $1.9960 with a break above will target $2.0050 (Apr 04 high) and stronger – on $2.0190 (Mar 27 high). Strong support comes at $1.9720, with a break under widens the correction toto Friday’s low on $1.9670.

The benchmark Nikkei 225 was higher by 282.40 points, or 2.05%, at 14049.26. The broader-based TOPIX was 31.29 points higher at 1377.39.

FTSE up 39, the DAX up 47, the CAC up 49 and the Eurostoxx 50 up 40.

Resistance 3:$1.5640

Resistance 2: $1.5550 Resistance 1: $1.5500Current price: $1.5444

Support 1: $1.5430
Support 2: $1.5400
Support 3: $1.5340

Comments: Euro remains under the pressure. Support is around $1.5430, stronger – on $1.5400 with a break down will widen the correction to $1.5340. Resistance comes at $1.5500/50 zone. stronger around yesterday's high $1.5640.

The front-month Nymex WTI June 08 contract was last down 52 cents at $112.00, just shy of the session low at $111.85.

High Low Close
EUR/USD 1.5642 1.5429 1.5467
USD/JPY 104.56 103.53 104.37
GBP/USD 1.9908 1.9711 1.9760
USD/CHF 1.0507 1.0334 1.0477

EUR/JPY 162.42 160.57 161.42
EUR/GBP 0.7874 0.7797 0.7824
GBP/JPY 207.12 204.80 206.25
GBP/CHF 2.0771 2.0518 2.0702


Change % Change Last
Nikkei -83.13 -0.60% 13,766.86
Topix - 12.55 -0.90% 1,346.10
FTSE 0.00 0.00% 6,087.30
DAX +63.48 +0.92% 6,948.82
CAC +19.44 +0.39% 4,996.54
DOW +189.87 +1.48% 13,010.00
NASDAQ +67.91 +2.81% 2,480.71
S&P 500 +23.75 +1.71% 1,409.34
10yr Note -0.1000 -0.027% 3.749%
NYMEX Crude Oil -0.96 -0.85% 112.50
Gold -14.20 -1.64% 850.90

06:00 Germany Retail sales (March) real adjusted - -1.6%
06:00 Germany Retail sales (March) real unadjusted Y/Y - -0.3%
06:45 France PPI (March) 0.5% 0.4%
06:45 France PPI (March) Y/Y 5.2% 4.9%
07:45 Italy PMI (April) - 49.4
07:50 France PMI (April) - 51.9
07:55 Germany PMI (April) seasonally adjusted 53.6 55.1
08:00 EU(15) PMI (April) 50.8 52.0
12:30 USA Nonfarm payrolls (April) -73K -80K
12:30 USA Unemployment rate (April) 5.2% 5.1%
12:30 USA Average hourly earnings (April) 0.3% 0.3%
12:30 USA Average workweek (April) 33.7 33.8
14:00 USA Factory orders (March) 0.3% -1.3%