The iPod maker Apple Inc was rated ``buy'' in new coverage at UBS AG, citing the company's ``core strengths and opportunities'' and ``competitive advantage.''

The Procter & Gamble Company posted a 33% jump in fourth-quarter net income as price hikes and cost-savings measures offset rising commodity prices; a $3B increase in commodity costs over the next 12 months will hurt profit margins.

Bertelsmann AG is selling its 50% stake in Sony BMG to Sony Corp. in a $1.2B, giving the Japanese company full ownership of the joint venture whose artists include Alicia Keys and Leona Lewis.

The world's biggest maker of agricultural chemicals Syngenta Ag fell after falling crop prices raised concerns about pesticide and fertilizer demand.

The Fed took a neutral tone in its latest directive, noting that there are both risks to inflation and growth. The Fed noted that although the economy grew in the second quarter, labor markets have "softened further" and financial markets remain under "considerable stress."
The FOMC believes that inflation will moderate later this year and in 2009.
The stock market traded in choppy manner following the release, and is currently trading modestly higher than pre-FOMC levels.

- Labor mkts have softened further;
- Tight credit & energy to weigh on growth;
- Bal of risks keeps upside risks to inflation & downside risks to growth but is more
symmetrical (no bias).
Outlook still expects inflation to moderate to this is uncertain, and growth to rebound to 'moderate' pace.
Vote: 10-1 with Fisher dissenting for an unspecified rate hike.

Just etched a new high for the session at Y108.34 area as dollar buying continues ahead of the FOMC announcement.

The dollar touched the highest in more than seven weeks versus the euro on speculation Federal Reserve policy makers will highlight concern that inflation needs to be contained while leaving interest rates unchanged.
``There's high hope riding on the Fed's statement,'' said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon in New York, the world's largest custodial bank with over $23 trillion in assets. ``The market is looking for any excuse to buy the dollar. Lower crude oil is the primary catalyst for the dollar to rally into the Fed meeting.''
Oil's decline also pushed the dollar higher versus the euro. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations. A reading of 1 would mean they moved in lockstep.
``The underperformance of commodity currencies is amplified by a commodity sell-off and a dovish Australian central bank,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``That gives a boost to the broad-based dollar rally. The dollar is a little bit overbought, unless either the Fed sounds a hawkish tone or oil continues to tumble.''
The Federal Open Market Committee is scheduled to announce its decision at 2:15 p.m. in Washington. The benchmark rate will be held at 2 percent, according to all 69 economists surveyed.
Futures on the Chicago Board of Trade showed a 34 percent chance the Fed will raise the target rate for overnight lending between banks by at least a quarter-point at the meeting on Sept. 16.
Consumer inflation accelerated to 0.8 percent in June, the fastest pace since September 2005, the U.S. Commerce Department reported yesterday.
Accelerating inflation adds to the risk that three members of the committee will dissent for the first time since 1992. Gary Stern, president of the Fed's Minneapolis bank, and the Philadelphia Fed's Charles Plosser joined Dallas's Richard Fisher since the last meeting in June in calling for an increase in rates to limit price increases. The trio has more clout than usual because two seats assigned to Fed governors on the 12- member panel will be vacant at the end of this month.
The yen rose against the 16 most-actively traded currencies, gaining the most versus Brazil's real, the rand and krone as well as the Australian dollar as investors reduced holdings of high-yielding assets funded by the Japanese currency. Japan's 0.5 percent benchmark interest rate compares with 13 percent in Brazil.
``There is concern the world economy is going to be bad,'' said Toru Umemoto, chief currency strategist in Tokyo at Barclays Capital Inc., a unit of Britain's third-biggest bank. ``The yen is being buoyed by risk aversion.''

The major indices climb to fresh session highs. Stock market bulls are pleased with the performance thus far, as only one economic sector -- energy (+0.5%) -- is posting a gain less than 1%.

«ISM data were weak but there is good news: ISM surveys are above what normally transpire in recession. Additionally, in hindsight we can see the weakest period for the ISM in
late 2007 and the bottom in January of 2008."

Notched a marginal fresh low for the session at $1.5455 as a fresh burst of dollar buys hit the street, but one trader says action remains quite muted nonetheless as traders jockey for position ahead of the FOMC rate announcement later. Bids remain $1.5450/40.

Major indexes higher in the early going as oil prices fall. Investors await the Fed's rate decision and comments.
The sentiment on Wall Street appeared to be better Tuesday as investors awaited the Federal Reserve's decision on interest rates.
The central bank is widely expected to leave its key fed funds rate unchanged at 2% when it announces its decision at 2:15 pm ET.
But investors will likely pay close attention to the Fed's statement, which may contain clues regarding future rate hikes.
Central bankers are in a bind when it comes to interest rates. The Fed cut rates to help spur economic activity, which remains relatively sluggish, but rising prices have put pressure on the central bankers to increase rates to curb inflation.
Crude prices continued to ease. Light, sweet crude for September delivery fell 93 cents to $120.48 a barrel in electronic trading.
The nation's service-oriented businesses remained in contraction in July, although by not as much as the month before, according to the Institute for Supply Management.
The ISM, a trade group of purchasing managers, said its reading of the service sector was 49.5 in July, up from 48.2 in June. That's better than economists' prediction of a reading of 48.7, according to the consensus estimate of economists.
A reading below 50 signals contraction, while a reading above 50 indicates growth.
Procter & Gamble said fourth-quarter profit soared 33%, thanks to price increases, overseas sales and tax benefits.
On the down side, Archer Daniels Midland said fiscal fourth-quarter profit was hurt by higher commodity prices. The industrial agriculture company said profit fell 61% to 58 cents per share.
Cisco Systems and News Corp. are slated to release results after the closing bell.
Gold prices tumbled $14.50 to $893.40 an ounce in New York.

"49.5 nonmfg ISM "looks like a technical rebound rather than a sign of cyclical recovery in the services sector due to its recent volatility and fact that components were mixed."

The stock market is trading in a tight range near its session high.
The financial sector continues to show strength (+2.4%), with 92% of its 88 components posting a gain. AIG (+2.02) is the best-performing name after being upgraded to Buy from Neutral at UBS. UBS believes that AIG is well positioned to absorb further losses without the need for an equity raise.
Oil prices climb to just under the unchanged mark and then run into some resistance, sending oil to a loss of 1.1% at $120.06 per barrel. As a result, the energy sector (+0.8%) is underperforming on a relative basis.

«World growth slowing, against that backdrop, US earnings are likely to decline by more than is priced into equity markets, and earnings disappointments likely will continue to pressure stock prices. Fed on hold with the risks between growth and inflation more balanced than at the last FOMC meeting in June."

Economist Ian Shepherdson at HFE says up-move in headline ISM nonmanuf index to 49.5 was driven by strength in core retail sales but the move was "marginal, and the subindexes are weak." So he terms the index "soft."

July nonmfg ISM business activity 49.6 vs 49.9. Prices paid 80.8 vs 84.5, employment 47.1, new orders 47.9.

The stock market gets off to a strong start ahead of the FOMC policy announcement at 2:15 ET. The Fed is expected to leave the fed funds rate unchanged at 2.00%, but the wording of the directive will have a market-moving impact.
Giving stocks a boost is a 1.3% drop in crude prices to $119.80 per barrel, although prices have recovered from a loss of as much as 2.8%. Meanwhile, European markets are rallying, lifted by bank stocks after Societe Generale posted better-than-feared earnings. London's FTSE is up 2.0%, Germany's DAX is up 2.4% and France's CAC is up 1.6%.
In earnings news, Procter & Gamble (PG 66.58, +0.76) topped estimates, while Archer Daniels Midland (ADM 27.31, -0.09), Molson Coors Brewing Company (TAP 47.98, -6.45) and MGM Mirage (MGM 32.70, +1.70) fell short of expectations.

Before FOMC non-manuf. ISM index will come. Analysts predict index rose to 51,0 points versus 48,2 points month earlier.

Futures (S&P futures vs fair value: +8.3. Nasdaq futures vs fair value: +15.2.) point to a higher open ahead of the FOMC policy announcement at 18:15 GMT.

The Fed is expected to leave the fed funds rate unchanged at 2.00% (fed funds futures imply a 93% probability rates will remain unchanged). Giving futures a boost this morning is a 2.0% drop in crude prices. In addition, European stock markets are rallying thanks to strength in financial names following better-than-expected results from Societe Generale. In earnings news, Procter & Gamble (PG) topped its expectations.

Pushes up to trigger the reported barrier at C$1.0430, as these option structures become generally targeted in the thin pre NY open period. If rate can build over this level expected to meet further sell interest placed to C$1.0440 ahead of C$1.0460. Bids C$1.0390/80, more between C$1.0360/50.

The dollar rose to a six-week high against the euro before a Federal Reserve meeting today at which policy makers may leave interest rates on hold and highlight concern that inflation needs to be contained.

The U.S. currency also climbed against the British pound after a report yesterday showed personal spending exceeded forecasts and as crude oil fell to a 13-week low, adding to optimism lower fuel prices will help sustain U.S. economic growth. The yen rose against all 16 major currencies as concern that financial-market losses are deepening reduced demand for higher-risk investments funded in Japan.
The euro weakened on speculation a slowing economy will deter the European Central Bank from raising interest rates.
Retail sales in the 15 countries that share the euro fell 1.3 percent in June from a year earlier, reversing a 0.3 percent gain in May, according to a Bloomberg News survey. The European Union's statistics office will release the data at 11 a.m. in Luxembourg today.
The ECB will leave its benchmark rate on hold at 4.25 percent when it announces a decision on Aug. 7, a separate survey showed. The ECB raised rates by a quarter of a percentage point on July 3 to curb the fastest inflation in 16 years.

EUR/USD consolidated within $1.5520/30 before pressure resumed and the pare piersed $1.5500 mark. Rate posted low at $1.5460, before rebounded to $1.5490.

GBP/USD lowered from $1.9585 to low around $1.9525. Bids $1.9525/15. stronger at $1.9500 and $1.9480/70. . Offers at $1.9575/80.

USD/JPY got support at Y107.65, before failed to clear back above Y108.00. Rate trades now at Y107.85. Bids Y107.50, Y107.30/20. Offers Y108.40

The main focus is on FOMC’s decision on Fed’s rate due at 18:15 GMT. The benchmark rate will be held at 2.00%. Before FOMC non-manuf. ISM index will come. Analysts predict index rose to 51,0 points versus 48,2 points month earlier.

``The Fed will certainly keep rates unchanged, and is likely to toss out a few warning words on inflation,'' said John Hardy, market strategist in London at Saxo Bank AS. ``Its view of the economy is likely dour enough to rein in any rhetoric that might suggest that they are about to hike interest rates any time soon.''

``The FOMC statement is going to sound a little bit'' dovish, Ashraf Laidi, chief currency analyst at CMC Markets in New York, said in an interview with Bloomberg Television. ``They are going to continue to say they are preoccupied with inflation, but acknowledging the decline in energy prices,'' pushing down the dollar below 108 yen, he said.

GBP/USD posted fresh low at $1.9525, as rate takes direction from further euro-dollar slippage, while euro-sterling remains support by the stg0.79220/10 area. Cable bids seen placed between $1.9525/15, more toward $1.9500 ahead of $1.9480/70. Offers $1.9575/85.

``The euro is in an adjustment phase and is likely to head lower,'' said Takuma Kurosawa, global markets treasurer in Tokyo at HSBC Bank, a unit of Europe's biggest lender. ``The euro won't rise even if the ECB raises rates again. The euro-zone economy is weakening and the central bank will have to acknowledge that.''
Europe's single currency may fall to $1.54 this week, Kurosawa said.

The dollar rose to a six-week high against the euro before a Federal Reserve meeting today at which policy makers may leave interest rates on hold and highlight concern that inflation needs to be contained.
The U.S. currency also climbed against the British pound after a report yesterday showed personal spending exceeded forecasts and as crude oil fell to a 13-week low, adding to optimism lower fuel prices will help sustain U.S. economic growth. The yen rose against all 16 major currencies tracked by Bloomberg as concern that financial-market losses are deepening reduced demand for higher-risk investments funded in Japan.
``I'm definitely not a seller of the U.S. dollar against the euro,'' said Andrew Gordon-Mackay, chief executive officer of Absolute Asset Management, a Melbourne-based currency hedge fund. ``The dollar is close to its medium-term bottom and reasons for selling the currency are already in the market. The euro area's outlook, on the other hand, is starting to turn negative.''
The Federal Open Market Committee is scheduled to announce its decision at about 2:15 p.m. in Washington. The benchmark rate will be held at 2 percent, according to all 69 economists surveyed by Bloomberg News.

The euro weakened on speculation a slowing economy will deter the European Central Bank from raising interest rates.
Retail sales in the 15 countries that share the euro fell 1.3 percent in June from a year earlier, reversing a 0.3 percent gain in May, according to a Bloomberg News survey. The European Union's statistics office will release the data at 11 a.m. in Luxembourg today.
The ECB will leave its benchmark rate on hold at 4.25 percent when it announces a decision on Aug. 7, a separate survey showed. The ECB raised rates by a quarter of a percentage point on July 3 to curb the fastest inflation in 16 years.

EUR/USD: $1.5500, $1.5400

USD/JPY: Y108.00, Y107.50, Y106.00

EUR/JPY: Y167.75

Resistance 3: Y111.05
Resistance 2: Y110.00
Resistance 1: Y108.40

Current price: Y107.83
Support 1: Y107.30

Support 2: Y106.00
Support 3: Y105.15

Comments: Dollar still holds within the upward channel from Jul 18, limited by Y105.15/Y111.05 (key support/resistance). Strong support is near Y107.30 (23.6% of Y103.70 - Y108.30/40 rise). Below losses may widen to 50% Fibo on Y106.05/00, then – near channel line on Y105.15. Resistance is around last Thursday’s high on Y108.40. Strong resistance comes at Fibo level on Y110.00 (50% of the move from Jun 2007 highs at Y124.10 to Mar 16 lows on Y95.70). 100 points higher the next band of resistance is – near channel line on Y111.00/05.

Resistance 3: Chf1.0720

Resistance 2: Chf1.0610
Resistance 1: Chf1.0520
Current price: Chf1.0517
Support 1: Chf1.0400
Support 2: Chf1.0320
Support 3: Chf1.0280

Comments: Dollar tries to rebound with resistance is around Wednesday’s and yesterdays highs on Chf1.0520. A bit higher there is stronger level on Chf1.0610 (upper bound of the upward channel from Jul 15). Break above will open the way to Feb lows on Chf1.0620. Strong support comes at channel line on Chf1.0400 (also 23.6% Fibo of Chf1.0012 - Chf1.0520 rise). Below correction may dip to Chf1.0320 (Jul 25-27 lows) with a break under will open the way to Chf1.0280 (Jul 23 lows).

The FTSE was last 1.25% higher at 5384.5, while the CAC and the DAX are 1.4% and 2.3% higher respectively.

Resistance 3: $1.9840

Resistance 2: $1.9760

Resistance 1: $1.9680
Current price: $1.9567
Support 1: $1.9530
Support 2: $1.9460

Support 3: $1.9360

Comments: Sterling reached lower bound of the 4-days range at $1.9530. Break above will open the way to $1.9460. Strong support comes near $1.9370/65 (Jan, Fen and May lows). Resistance is around the channel line from Jul 15 at $1.9680 (broken yesterday). Back above will target Monday’s highs on $1.9760, then – on $1.9840.

Resistance 3:$1.5780

Resistance 2: $1.5700

Resistance 1: $1.5630
Current price: $1.5494
Support 1: $1.5500

Support 2: $1.5450
Support 3: $1.5300

Comments: Euro still under pressure on Tuesday with support zone remains between $1.5500 (yesterday’s low). Break down will accelerate the decline to the channel line from Jul 15 on $1.5450 and then – to $1.5350 and Jun lows around $1.5300. Minor resistance comes near yesterday’s high at $1.5630, then – Jul 30 high on $1.5700. Stronger level is around channel line from Jul 15 on $1.5780.

EUR
Bids: $1.5500/90
Offers: $1.5545/50, $1.5560/65, $1.5575/85, $1.5600

JPY
Bids: Y108.00/107.90, Y107.50
Offers: Y108.40, Y108.60

GBP
Bids: $1.9525/15
Offers: $1.9600, $1.9620/30, $1.9650

The dollar rose toward a six-week high against the euro before a Federal Reserve meeting today at which policy makers may leave interest rates on hold and highlight concern about inflation.
The U.S. currency also climbed to a six-week high versus the British pound after crude oil fell to a 13-week low, adding to optimism lower fuel prices will help sustain growth in the world's biggest economy. The greenback also gained as crude oil fell below $120 a barrel for the first time since May.
Australia's dollar fell to a three- month low after the nation's central bank signaled it may cut borrowing costs. The Reserve Bank of Australia Board said there is ``scope to move towards a less restrictive stance of monetary policy,'' after keeping interest rates unchanged at a 12-year high of 7.25%.

EUR/USD fell from $1.5580 and held near $1.5520/30 for some time. Later pressure on rate resumed and rate currently holds lows around $1.5511.

GBP/USD continued yesterday’s slide, holding around $1.9560/70 lows.

USD/JPY challenged Y108.30 before falling to Y107.65.

In Europe today PMI will come from EU countries, including UK.
But the main focus is on FOMC’s decision on Fed’s rate at 18:15 GMT.
Before FOMC non-manuf. ISM index will come. Analysts predict index rose to 51,0 points versus 48,2 points month earlier.

Japan's benchmark stock indices ended Tuesday's session lower, unable to hold on to earlier gains. The benchmark Nikkei 225 was down 18.52 points, or 0.14%, at 12914.66. The broader-based TOPIX was down 0.54 points at 1247.71.

Stock market fixing:
Nikkei 225 -161.41 -1.20% 12,933.18
Topix -24.68 -1.90% 1,248.25
CAC -33.71 -0.78% 4,280.63
FTSE -34.50 -0.64% 5,320.20
DAX -46.65 -0.73% 6,349.81
Dow -42.17 -0.37% 11,284.15
NASDAQ -25.40 -1.10% 2,285.56
S&P -11.29 -0.90% 1,249.02
10yr Note +0.2400 +0.061% 3.972%
NYMEX Crude Oil -3.69 -2.95% 121.41
Gold -9.60 -1.05% 907.90

Japan stocks dropped, sending the benchmark Topix index to a more than three-month low, after profit fell at Mitsui & Co. and Olympus Corp., and U.S. car sales declined to the lowest in more than a decade.
Mitsui, Japan's second-largest trading company, tumbled to the lowest in almost four months, while camera maker Olympus fell the most since May 9. Nissan, Japan's third-largest carmaker, sank to a five-year low after net income fell more than analysts expected while Mazda Motor Corp. plunged the most in more than six years. Kansai Electric Co. led utilities higher as demand grew for companies that can weather an economic slowdown.
The Nikkei lost 1.8% last week amid weaker-than- estimated earnings from Sony Corp. and NEC Corp. Among Topix- listed companies announcing quarterly results in the month through Aug. 1, some 473 posted a decline in net income with 326 reporting an increase.
Olympus slumped 5.2% after the company said on Aug. 1 first-quarter profit plunged 63 percent amid slumping prices for digital cameras. JPMorgan Chase & Co. cut its rating on the stock to ``underweight'' from ``neutral.''
Nissan fell 4.8%, the lowest level since March 2003. The shares are also lower than when Carlos Ghosn was named chief executive officer of the company in June 2001. The company said on Aug. 1 net income dropped 43 percent to 52.8 billion yen ($492 million) in the first quarter due to a writedown on leased vehicles and a stronger yen. Three brokerages cut their price targets on the company. Meanwhile, U.S. auto sales tumbled 13% in July, pushing the industry toward its worst year since 1993.

European stocks fell for a third day as a report showed the biggest jump in U.S. consumer prices since 2005, HSBC Holdings Plc posted an increase in bad-loan charges and a drop in metal prices sent mining companies lower.
HSBC declined after Europe's biggest bank said it set aside more money for bad loans in the U.S. Fortis slumped as the Belgian financial-services company said the difficult economic environment ``will remain.'' Kazakhmys Plc led a retreat in mining companies after copper sank to a five-month low.
BNP Paribas SA helped trigger the global credit seizure a year ago this week after France's largest bank by market value halted withdrawals from three funds invested in subprime debt. Financial shares in the MSCI World Index have since tumbled 30 percent as a group.
HSBC retreated 1.1%. The bank said first-half profit fell 29 percent as it set aside more money for bad loans in the U.S. HSBC also reported a 29% drop in first-half profit.
Fortis sank 3.6%. The Belgian financial-services firm that ousted its chief executive officer last month said second-quarter profit declined 49% on credit-related writedowns.

Stocks on Wall Street closed lower Monday as investors mulled mixed readings on the economy a day ahead of the Federal Reserve's policy meeting.

The Commerce Department reported that personal spending and income edged higher in June. Individual income increased by 0.1% after a revised 1.8% jump in May, matching economists expectations. The increase was due in part to the government's economic stimulus plan, which included billions of dollars in rebate checks sent to Americans in May and June. Personal spending increased by 0.6%, topping the 0.5% increase that economists had expected. When adjusted for inflation, however, individual spending actually fell 0.2% following a 0.3% increase in May.
Among corporate news: Europe's largest bank, HSBC, said Monday that profits fell 29% through the first half of the year, the most since 2001, due to bad U.S. mortgages.
Chrysler said on Sunday that its financial unit had renewed lines of credit totaling $24 billion. The privately-held automaker had originally sought $30 billion in credit.

The dollar fell from a one-month high against the euro as stocks declined amid concern losses in U.S. credit markets may widen.
U.S. consumer spending rose 0.6% in June following a 0.8% increase in May, the Commerce Department said. The median forecast of economists was for an increase of 0.4%.
The Fed's preferred price gauge, known as the core measure which excludes food and fuel, rose 0.3% last month after a revised 0.2% May gain. The median forecast was for a 0.2% increase.
Policy makers will keep their target rate for overnight loans between banks at 2% when they meet Tuesday.
The pound fell against the euro for a third day and dropped versus the dollar after an industry report showed the U.K.'s construction industry shrank in July at the fastest pace in 11 years.
The Australian dollar has taken a big hit as investors have been caught off guard by a sharp shift in expectations towards interest rate cuts, tumbling nearly 3 percent against the dollar and yen last week for its biggest weekly drop since the Bear Stearns collapse in March. Traders said the Aussie likely had more room to fall as market players come around to the view that the Reserve Bank of Australia, which holds a policy meeting on Tuesday, could start cutting interest rates before long.

EUR/USD tested $1.5620/30, but failed to set above the figure and back off to $1.5560. Later rate resumed decline and fell to session low on $1.5525.
GBP/USDfellfrom$1.9755. Rate broke thought $1.9700 support and after triggering some stops fell to $1.9600. Rebound to $1.9635 was short-lived and pound refreshed session lows around $1.9580.
USD/JPY rose from Y107.44 to Y108.30. Later rate set stable within the Y108.10/30 range.

In Europe today PMI will come from EU countries, including UK.
But the main focus is on FOMC’s decision on Fed’s rate at 18:15 GMT.
BeforeFOMCnon-manuf. ISMindexwillcome. Analysts predict index rose to 51,0 points versus 48,2 points month earlier.

Resistance 3: Y111.05
Resistance 2: Y110.00
Resistance 1: Y108.40
Current price: Y107.83
Support 1: Y107.30
Support 2: Y106.00
Support 3: Y105.15
Comments: Dollar still holds within the upward channel from Jul 18, limited by Y105.15/Y111.05 (key support/resistance). Strong support is near Y107.30 (23.6% of Y103.70 - Y108.30/40 rise). Below losses may widen to 50% Fibo on Y106.05/00, then – near channel line on Y105.15. Resistance is around last Thursday’s high on Y108.40. Strong resistance comes at Fibo level on Y110.00 (50% of the move from Jun 2007 highs at Y124.10 to Mar 16 lows on Y95.70). 100 points higher the next band of resistance is – near channel line on Y111.00/05.

Resistance 3: Chf1.0720
Resistance 2: Chf1.0610
Resistance 1: Chf1.0520
Current price: Chf1.0507
Support 1: Chf1.0400
Support 2: Chf1.0320
Support 3: Chf1.0280
Comments: Dollar tries to rebound with resistance is around Wednesday’s and yesterdays highs on Chf1.0520. A bit higher there is stronger level on Chf1.0610 (upper bound of the upward channel from Jul 15). Break above will open the way to Feb lows on Chf1.0620. Strong support comes at channel line on Chf1.0400 (also 23.6% Fibo of Chf1.0012 - Chf1.0520 rise). Below correction may dip to Chf1.0320 (Jul 25-27 lows) with a break under will open the way to Chf1.0280 (Jul 23 lows).

Resistance 3: $1.9840
Resistance 2: $1.9760
Resistance 1: $1.9680
Current price: $1.9585
Support 1: $1.9580
Support 2: $1.9460
Support 3: $1.9370
Comments: Sterling slowly weakens within the 4-days range. Rate holds a bit above key support zone around trend line from Apr 2006 at $1.9580. Break above will open the way to $1.9460. Strong support comes near $1.9370/65 (Jan, Fen and May lows). Resistance is around the channel line from Jul 15 at $1.9680 (broken yesterday). Back above will target Monday’s highs on $1.9760, then – on $1.9840.

Resistance 3:$1.5780
Resistance 2: $1.5700
Resistance 1: $1.5620
Current price: $1.5535
Support 1: $1.5500
Support 2: $1.5450
Support 3: $1.5300
Comments: Euro still under pressure on Tuesday with support zone remains between $1.5500 (yesterday’s low). Break down will accelerate the decline to the channel line from Jul 15 on $1.5450 and then – to Jun lows around $1.5300. Minor resistance comes near yesterday’s high at $1.5620, then – Jul 30 high on $1.5700. Stronger level is around channel line from Jul 15 on $1.5780.

High Low Close
EUR/USD 1.5629 1.5550 1.5570
USD/JPY 108.29 107.44 108.19
GBP/USD 1.9760 1.9598 1.9610
USD/CHF 1.0505 1.0432 1.0482

EUR/JPY 168.77 167.28 168.47
EUR/GBP 0.7944 0.7877 0.7937
GBP/JPY 212.88 212.05 212.18
GBP/CHF 2.0718 2.0529 2.0556

Change % Change Last
Nikkei 225 -161.41 -1.20% 12,933.18
Topix -24.68 -1.90% 1,248.25
CAC -33.71 -0.78% 4,280.63
FTSE -34.50 -0.64% 5,320.20
DAX -46.65 -0.73% 6,349.81
Dow -42.17 -0.37% 11,284.15
NASDAQ -25.40 -1.10% 2,285.56
S&P -11.29 -0.90% 1,249.02
10yr Note +0.2400 +0.061% 3.972%
NYMEX Crude Oil -3.69 -2.95% 121.41
Gold -9.60 -1.05% 907.90

04:30 Australia RBA meeting announcement - 7.25%
07:45 Italy PMI services (July) - 48.5
07:50 France PMI services (July) 47.0 50.1
07:55 Germany PMI services (July) seasonally adjusted 53.3 52.1
08:00 EU(15) PMI services (July) 48.3 49.1
08:30 UK CIPS services index (July) 46.7 47.1
08:30 UK Industrial production (June) 0.2% -0.8%
08:30 UK Industrial production (June) Y/Y -1.1% -1.6%
08:30 UK Manufacturing output (June) 0.2% -0.5%
08:30 UK Manufacturing output (June) Y/Y -0.5% -0.8%
09:00 EU(15) Retail sales (June) adjusted -0.5% 1.2%
09:00 EU(15) Retail sales (June) adjusted Y/Y -1.1% 0.2%
12:55 USA Redbook (02.08)
14:00 USA ISM Non-mfg composite index (July) 51.0 48.2
14:00 USA ISM Non-mfg business index (July) - 49.9
18:15 USA FOMC meeting announcement 2.00% 2.00%