Talks between state-run Korea Development Bank and Lehman Brothers Holdings Inc. have ended.
Reynolds American Inc said it will cut about 10% of its American work force as the company restructures its portfolio.
Wachovia Corp’s Chief Executive Bob Steel said the firm is on track to reduce the loans and securities on its balance sheet by $20 billion in 2008.
09.09 20:25
EU stocks closed lower Tuesday: the FTSE-100 fell 30.70 (-0.56%) to 5415.60, the CAC-40 declined 46.84 (-1.08%) to 4293.34, and the DAX retreated 30.33 (-0.48%) to 6233.41
The major indices trade with steep losses.Overseas markets are not faring much better;
the Dow Jones World Ex U.S. Index is down 1.3%. Eight of the ten economic sectors are in the
red.Telecom (+0.5%) and consumer
staples (+0.1%) are the only two with gains. Although, the two are off their
session highs.
The yen rose against all of the other major
currencies as a drop in global stocks raised speculation that investors will
reduce holdings of higher- yielding assets and pay back loans in Japan.
The budget
deficit will grow next year to a record $438 billion, the Congressional Budget
Office said, making it harder for President George W. Bush's successor to
either cut taxes or increase spending. This year's shortfall will total $407
billion, the agency said today in a biannual report. The Bush administration
estimated in July that next year's deficit will total $482 billion.
The National Association of Realtors said today
that its index of pending home resales in the U.S. fell 3.2% in July in its
fourth decline this year after a revised 5.8% gain in previous month.
Royal Bank of Scotland Group Plc cut its
forecasts for the euro versus the dollar today. The single currency will end
the year at $1.40 before weakening to $1.35 by the end of the first quarter of
2009, it said. The bank's previous predictions were $1.50 and $1.45,
respectively.
Stocks were mixed Tuesday morning , in a volatile start to the
session, as investors mulled lower oil prices in the aftermath of
Monday's big rally sparked by the government takeover of Fannie Mae and
Freddie Mac.
Stocks surged Monday, with the Dow rising 290 points and the broader
market also advancing as investors breathed a sigh of relief that the
government has stepped in to bail out troubled mortgage giants Fannie
Mae and Freddie Mac. Meanwhile, federal officials warned Tuesday that the budget deficit will be substantially higher this year, rising $246 billion to $407 billion, partly as a result of the Fannie and Freddie bailout. On Tuesday, Fannie and Freddie shares gained, while the broader financial sector was mixed. Company news: Dell
founder Michael Dell bought $100 million of Dell shares last week, it
was announced after the close of trade Monday. That sent shares of the
PC-maker higher by 1% Tuesday morning. McDonald's said
August sales at its stores open a year or more rose 8.5% in the month,
topping forecasts. Shares gained 2% in the early going. Fuel prices:
Oil prices fell as investors awaited the conclusion of an OPEC meeting
in Vienna, in which it is expected that the cartel will hold production
levels steady despite the recent price slide. Also impacting oil prices
signs that Hurricane Ike is weakening and is less likely to cause
severe damage to oil facilities in the Gulf of Mexico. Prices have
fallen more than $40 a barrel from a record high of $147.20 in July, on
bets that a sluggish global economy is cutting into demand.
09.09 16:32
USD/JPY tested Y107.00 and sharply recovered to current Y107.40/45
CitiFX says "Back testing
channel support at $782. A break below here would suggest a danger of
extended losses with supports at $774 (recent low), $730 (May 2006
high) and then $637 (200 week moving average)."
HFE economist Ian Shepherdson says pending home sales index "is
turning upwards, probably because of increase sales of foreclosed
homes. The index has climbed at a 7.6% annualized rate in the three
months to July." He says that's a long way from recovery but is at
least a plus.
The major indices rebound from opening losses and then give back some
ground on the release of two economic reports, Strength in tech (+0.7%)
and consumer discretionary (+1.1%) are helping to offset offsetting
weakness in energy (-2.4%) and materials (-2.3%). The financial sector
(-0.4%) is posting a loss, but has recovered much of its early decline.
The stock market starts the session with modest losses. Overall it has been a slow news day. Financials (-1.7%) are seeing some profit-taking from yesterday's GSE
bailout-induced surge. Lehman Brothers (LEH 12.15, -2.02) is under
selling pressure after Dow Jones reported that South Korea's Financial
Services Commission Chairman said state-run Korea Development Bank is
no longer in talks with Lehman. It was previously speculated that the
state-run bank may take a stake or acquire Lehman.
The energy sector (-2.6%) is also playing a role in the decline, falling as crude prices retreat 2.1% to $104.10 per barrel.
09.09 14:50
GS analysts say of crude oil "WTI Crude remains under pressure below the major $110/111 level. There is little support until $98."
Futures are higher S&P futures vs fair value: -0.80. Nasdaq futures
vs fair value: +0.80, following strong stock session fueled by
government takeover of Fannie and Freddie. Oil prices down as Saudi oil
minister calls market 'well balanced.'
Oil prices fell $1.89 a barrel, to $104.45, as the downgrading of
Hurricane Ike to a Category 1 storm alleviated concerns that it would
disrupt oil supplies in the Gulf of Mexico.
At 1400GMT the Commerce Department will announce the level of wholesale
inventories in July. A consensus of economists surveyed by Briefing.com
expects an increase of 0.7%, compared to a gain of 1.1% in the prior
month.
Also at 1400GMT, pending home sales for July will be announced. A consensus of economists expects a decline of 1.4%, compared to a gain of 5.3% in the prior month. McDonald's (MCD) reported global comparable store sales rose 8.5% in August, with U.S. sales increasing 4.5%
The move comes ahead of the OPEC meeting in Vienna today,
where production quota levels are expected to be left unchanged and as
concerns over Hurricane Ike ease. Technically, there is very little
significant support until $101.55 -- support line from Jan 2007, where
break below here is seen adding to confirmation of an end to the bull
rally.
The euro gained against the dollar despite German report showing the nation's trade
surplus shrank in July, adding to signs that Europe's largest economy
is cooling. Germany's trade surplus narrowed to 13.9
billion euros ($20 billion) in July from 19.7 billion euros in June,
the Federal Statistics Office said in Wiesbaden today. Dollar remained under pressure on longs liquidation ahead of US housing data.
Fewer Americans signed contracts in July to purchase previously owned
homes, a sign that falling home prices aren't enough to bring buyers
back into the market, economists said before a private report today.
The index of pending home resales fell 1.5 percent after a gain of 5.3
percent in June, according to the median forecast in a Bloomberg News
survey of 39 economists. The decline would be the fourth so far this
year as tighter credit conditions keep would-be buyers from taking
advantage of lower prices.
Thirty-year fixed rate mortgages averaged 6.29 percent in July, up from
an average of 5.81 percent in the first half of the year. The U.S.
government's takeover of Fannie Mae and Freddie Mac, which own or
guarantee almost half of American home loans, aims to ensure that
mortgage funds remain available and to minimize further declines in the
housing market.
The National Association of Realtors is scheduled to release the
figures at 1400GMT. Estimates ranged from a drop of 3.5 percent to a
gain of 2 percent.
The pending resales report is considered a leading indicator because it
tracks contract signings. Closings, which typically occur a month or
two later, are tallied in a separate report from the Realtors.
A separate report today from the Commerce Department may show that
wholesale inventories in July increased 0.7 percent, the smallest gain
since March, after rising 1.1 percent the previous month, according to
the median estimate of economists surveyed.
The
yen traded near two-year highs against the Australian and New Zealand
dollars, two favorites of so-called carry trades, as Asian banking
shares fell on concern the U.S. government's takeover of mortgage
lenders Fannie Mae and Freddie Mac won't halt subprime losses.
Australia's currency slid after home-loan approvals unexpectedly
declined for a sixth month.
EUR/USD gained up to $1.4199, but ahead of US session eased back to $1.4150/45.
Offers remain on approach to $1.4200.
GBP/USD having posted session low at $1,7500 rate in the course of general US dollar straight reached $1.7670 mark, before fell to
$1.7620. Offers $1.7670/80, $1.7720. Bids $1.7610/00.
USD/JPY gained to Y108.20, before traded within Y108.10- Y107.75 range. Offers Y108.20, Y108.40/50,
Y109.00/10. Bids Y107.30/25.
Today focus will be on Canadian Housing Starts s.a at 12:15 GMT and US Pending Home Sales at 14:00 GMT.
Rate continues to consolidate its recent
pullback from life highs at stg0.8187 (Sep4), remaining buoyed above
the overnight low at stg0.8022, and holding below stg0.8050. Rate
currently trades around stg0.8032. Bids remain in place on approach to
stg0.8020 with talk emerging of decent sized stops placed on a break
below.
Cable stretched on to $1.7668, with the latest leg up provided by
reported corporate buy interest. Rate currently holds back around
$1.7625. Offers now seen placed between $1.7670/80, a break above to
open a move on toward $1.7700 ahead of stronger area between
$1.7715/25. Bids noted between $1.7610/00.
Dollar remains under pressure on longs liquidation ahead of US housing data.
Fewer Americans signed contracts in July to purchase previously owned
homes, a sign that falling home prices aren't enough to bring buyers
back into the market, economists said before a private report today.
The index of pending home resales fell 1.5 percent after a gain of 5.3
percent in June, according to the median forecast in a Bloomberg News
survey of 39 economists. The decline would be the fourth so far this
year as tighter credit conditions keep would-be buyers from taking
advantage of lower prices.
Thirty-year fixed rate mortgages averaged 6.29 percent in July, up from
an average of 5.81 percent in the first half of the year. The U.S.
government's takeover of Fannie Mae and Freddie Mac, which own or
guarantee almost half of American home loans, aims to ensure that
mortgage funds remain available and to minimize further declines in the
housing market.
``More houses are coming into the market because of foreclosures, and
those are driving prices down,'' said Dana Saporta, an economist at
Dresdner Kleinwort in New York. ``The trend might be a little better
going forward on pending home resales because of the drastic price
reductions, but that would not necessarily be an indication that the
housing market is healthy.''
The National Association of Realtors is scheduled to release the
figures at 1400GMT. Estimates ranged from a drop of 3.5 percent to a
gain of 2 percent.
The pending resales report is considered a leading indicator because it
tracks contract signings. Closings, which typically occur a month or
two later, are tallied in a separate report from the Realtors.
A separate report today from the Commerce Department may show that
wholesale inventories in July increased 0.7 percent, the smallest gain
since March, after rising 1.1 percent the previous month, according to
the median estimate of economists surveyed.
The
yen traded near two-year highs against the Australian and New Zealand
dollars, two favorites of so-called carry trades, as Asian banking
shares fell on concern the U.S. government's takeover of mortgage
lenders Fannie Mae and Freddie Mac won't halt subprime losses.
Australia's currency slid after home-loan approvals unexpectedly
declined for a sixth month.
Resistance 3: Y110.30
Resistance 2: Y109.00
Resistance 1: Y108.20
Current price: Y108.10
Support 1: Y107.40
Support 2: Y106.80
Support 3: Y105.60
Comments: USD/JPY tested strong support at Y107.30/40
(50% Fibo of Y105.50 -Y109.10). Further down the rate may loewr to
Y106.80 and to the trend line support from March 17 Y105.60 (Y105.50 –
yesterday's low). Resistance spotted at 23.6% Fibo Y108.20, and at
yesterday's high of Y109.00/10.
Resistance 3: Chf1.1480
Resistance 2: Chf1.1420
Resistance 1: Chf1.1370
Current price: Chf1.1283
Support 1: Chf1.1260
Support 2: Chf1.1200
Support 3: Chf1.1090
Comments: USD/CHF still holds within the upward channel from Jul 16,
limited today by Chf1.1090/Chf1.1480 (key support/resistance
respectively). Support is around session low at Chf1.1260. Below losses
may widen to Chf1.1200, then – to channel line at Chf1.1090. Resistance
comes at yesterday’s high on Chf1.1370, then – near Chf1.1420 and
channel line on Chf1.1480.
Resistance 3: $1.7920
Resistance 2: $1.7720
Resistance 1: $1.7670
Current price: $1.7658
Support 1: $1.7500
Support 2: $1.7470
Support 3: $1.7330
Comments: GBP/USD continues to hold within the downward channel from
Jul 31, limited today by $1.7330/$1.7920 (key support/resistance
respectively). Rate is under pressure after yesterday’s weak PPI
report. Support is around $1.7500/10, then – at Monday’s low on
$1.7460/70. Key support at channel line on $1.7330. Resistance comes on
$1.7670, stronger – at $1.7720 (50% Fibo of the last two days decline).
Key level comes at channel line on $1.7920.
-- Says prices would fall even if OPEC cut supply
-- Says "very good equilibrium" for stocks
-- Says there will be supply overhang by end of the year
-- Says supply overhang will likely worsen early in 2009.
Resistance 3:$1.4420
Resistance 2: $1.4240
Resistance 1: $1.4180
Current price: $1.4175
Support 1: $1.4040 Support 2: $1.3920
Support 3: $1.3840
Comments: Minor
resistance comes at $1.4180/90 (61.8% of the last two days decline).
Further rebound may reach $1.4240. Key resistance comes at Monday’s
highs on $1.4420/30.
Support is around session low on $1.4040. Stronger support
comes at channel line from Jul 31 on $1.3920 with a break under will
open the way to trend support line from Jan 2002 at $1.3840.
-- World economic slowdown will help contain inflation
-- Commodity prices pose risk of serious 2nd round effects
-- Expect commodity prices to remain high and volatile
-- High oil prices have largely reflected fundamentals
-- Economic momentum to lose steam in emerging markets
-- Financial crisis ongoing, liquidity risks still high.
The yen rose against the euro for a second day on speculation
credit-market losses will widen, prompting investors to pare holdings
of higher-yielding assets funded with Japan's currency.
The yen traded near two-year highs against the Australian and New
Zealand dollars, two favorites of so-called carry trades, as Asian
banking shares fell on concern the U.S. government's takeover of
mortgage lenders Fannie Mae and Freddie Mac won't halt subprime losses.
Australia's currency slid after home-loan approvals unexpectedly
declined for a sixth month.
In a carry trade, investors get funds in a country with low borrowing
costs and invest in one with higher interest rates. The risk is that
currency market moves erase those profits. Benchmark rates are 0.5
percent in Japan, 7 percent in Australia and 8 percent in New Zealand.
The dollar fell for the first time in three days against the yen on
speculation U.S. consumer spending will falter as the housing market
weakens. Pending sales of previously owned U.S. homes fell 1.5 percent
in July after rising 5.3 percent in the previous month, according to a
survey of economists before the National Association of Realtors
releases the data at 14:00 GMT in Washington.
The euro declined for a ninth day against the dollar, its longest
stretch since the currency's debut in 1999, as a German report showed
the nation's trade surplus shrank in July, adding to signs that
Europe's largest economy is cooling.
Germany's trade surplus narrowed to 13.9 billion euros ($20 billion) in
July from 19.7 billion euros in June, the Federal Statistics Office
said in Wiesbaden today.
EUR/USD firstly declined and tested 11-month lows, then rebound to $1.4140. GBP/USD react dip on release of UK industrial
production data draws strong demand, with rate jumping back above the
pre release level around
$1.7552 and progresses on to $1.7565. EUR/JPY A rebound to Y107.80 resolved with losses to Y107.20.
Today focus will be on Canadian Housing Starts s.a at 12:15 GMT and US Pending Home Sales at 14:00 GMT.
Japan's stocks jumped the most in five
months, led by banks, after the U.S. government took control of
mortgage lenders Fannie Mae and Freddie Mac, boosting confidence
turmoil in global financial markets will ease. Mitsubishi
UFJ Financial Group Inc. and Mizuho Financial Group Inc., Japan's
biggest listed lenders, jumped more than 12 percent, leading a gauge of
banks to the sharpest gain in 16 years. Rival Resona Holdings Inc.
surged 11 percent after saying it will buy back shares. Orix Corp.,
which provides consumer loans and leasing, leapt 15 percent, the most
in 24 years. The Nikkei 225 Stock Average climbed 412.23,
or 3.4 percent, to close at 12,624.46 in Tokyo. The broader Topix index
added 45.57, or 3.9 percent, to 1,216.41. Both indexes gained the most
since April 2, and all but three of 33 Topix industry groups rose. The
U.S. government took over Fannie and Freddie as the biggest surge in
mortgage defaults in at least three decades threatened to topple the
two companies. Mitsubishi UFJ surged 13 percent to 850
yen, while Mizuho, the Japanese bank with the most losses related to
the U.S. mortgage market, climbed 12 percent to 463,000 yen. Both
jumped by their daily trading limits. Sumitomo Mitsui Financial Group
Inc., Japan's No. 3 bank, added 15 percent to 674,000 yen. The Topix
Banks Index rose 12 percent, the most since April 1992. Japan's
three biggest banks held a total of 4.7 trillion yen ($43 billion) in
debt securities issued by U.S. government- related mortgage financers
including Fannie Mae and Freddie Mac as of March 31. Banks and consumer
lenders, the worst-performing groups since the Topix's June 4 high this
year, were today's biggest winners. Resona, the nation's
fourth-largest bank, surged by its daily upper ceiling of 10,000 yen,
or 11 percent, to 103,700 yen after having lost a quarter of its value
last week. The lender will spend as much as 110 billion yen to buy back
shares between Sept. 9 and March 31, the bank said today before markets
opened. Orix, Japan's biggest non-bank financial
company, climbed 15 percent to 13,700 yen, the most since June 1984.
Aiful Corp., a consumer lender that sank 15 percent last week, surged
9.8 percent to 829 yen.
European
stocks climbed the most since March, led by financial and construction
companies, on speculation the U.S. government's takeover of Fannie Mae
and Freddie Mac will shore up the mortgage market. UBS
AG, the European bank hardest hit by subprime-related losses, jumped
8.3 percent and Germany's Deutsche Bank AG surged 6.5 percent after
Treasury Secretary Henry Paulson said the government will provide
short-term funding to the biggest U.S. mortgage-finance companies and
purchase debt backed by home loans. Vinci SA, the world's biggest
builder, rose 4.4 percent. National benchmark indexes
advanced in all 18 western European markets today. France's CAC 40
gained 3.4 percent, and Germany's DAX added 2.2 percent. The
U.K.'s FTSE 100 rose 3.9 percent. A computer fault, which started at
about 9 a.m. today, left some traders without prices and unable to buy
or sell shares for more than six hours. UBS climbed
8.3 percent to 24.26 francs. Deutsche Bank, Germany's largest, advanced
6.2 percent to 60.18 euros. Barclays Plc, the U.K.'s third-biggest
bank, jumped 12 percent to 355 pence. Banks and insurers accounted for
the 10 steepest gains in the Dow Jones Stoxx 50 Index, a gauge of the
largest European companies. Raw-materials producers in
the Stoxx 600 climbed 3.7 percent as a group after copper jumped 1
percent in New York. Gold, tin and zinc also increased. Boliden
AB, Europe's second-largest zinc producer, gained 6.4 percent to 38.2
Swedish kronor. BHP Billiton, the world's largest mining company, rose
3.3 percent to 1,485 pence. Air France-KLM Group,
Europe's biggest airline, said passenger traffic grew 2.8 percent last
month, led by travel to the Americas. The shares added 2.3 percent to
17.045 euros. Bayerische Motoren Werke AG, the world's
largest luxury automaker, climbed 4.1 percent to 28.72 euros. UBS AG
rated the shares ``buy'' in new coverage, saying the company ``has the
potential to double margins'' on a three-year view.
U.S.
stocks climbed, adding to a rally across Europe and Asia, on
speculation the government takeover of Fannie Mae and Freddie Mac will
stabilize the global financial system battered by $507 billion in
credit losses. Citigroup Inc., Wachovia Corp. and
Bank of America Corp. added more than 4 percent after Treasury
Secretary Henry Paulson said the government will provide short-term
funding to mortgage lenders Fannie and Freddie. KB Home and D.R. Horton
Inc. jumped more than 5 percent, sending a gauge of homebuilders to a
four- month high. SanDisk Corp. slumped 10 percent, leading technology
shares lower, after UBS AG cut earnings estimates for the largest maker
of memory cards used in digital cameras. The rally pared
the S&P 500's decline this year to 14 percent, on pace for its
first annual loss since 2002. Financial companies led the drop this
year as the first nationwide decline in home prices since the 1930s
saddled banks and investors with nonperforming loans to homeowners and
builders. Most financial companies gained as debt
guaranteed by Fannie Mae and Freddie Mac, held by most banks and
securities firms, rose in value, and other types of debt securities
rallied in sympathy.
The yen fell the most in two weeks against the dollar as the U.S.
government's takeover of Fannie Mae and Freddie Mac encouraged
investors to buy higher-yielding assets.
The yen also slumped by the most in six months against the Australian
and New Zealand dollars, two favorites of so-called carry trades, as
stocks rose on speculation support for the two mortgage companies will
stem a crisis that has caused more than $500 billion of losses and
writedowns. The dollar advanced against the euro for an eighth day.
Stocks climbed around the world, led by financial companies. The MSCI
World Index added 2.5 percent. The Standard & Poor's 500 Index
gained 2.2 percent, while the Dow Jones Industrial Average rose 2.5
percent.
Treasuries tumbled, with 10-year yields rising the most in almost two
months. Japanese 10-year bond yields climbed to a one-month high.
The U.S. government seized control of Fannie Mae and Freddie Mac
yesterday after the biggest surge in mortgage defaults in at least
three decades threatened to topple the companies making up almost half
the U.S. home-loan market.
The Treasury can buy as much as $100 billion of a special class of
stock in each company as needed to maintain their positive net worth.
It will also provide secured short-term funding to Fannie, Freddie and
12 federal home-loan banks, and purchase mortgage-backed debt in the
open market.
EUR/USD Lows were marked at $1.4053 on stop-driven
sales in thin conditions with a later rebound reaching $1.4130 as
stocks rebuilt gains.
GBP/USD declined and tested 2-years lows. Rate fell from$1.7977 to $1.7470.
EUR/JPY A rebound to Y108.50 resolved with
losses to Y107.80 through the London fixing as stock gains faded. Lows
at Y107.75 were marked in early afternoon on light flows with recovery
to Y108.00 ahead of the stock close.
Among the European data who are published today, focus will be on UK
Manufacturing output (08:30GMT). Later focus will be on Canadian
Housing Starts s.a at 12:15 GMT and US Pending Home Sales at 14:00 GMT.
Japan's benchmark stock indices ended the day lower across the board,
giving back over half of the previous session's GSE inspired gains.
However, the indices closed above their lows. The benchmark Nikkei 225
was down 223.81 points, or 1.77%, at 12400.65. The broader-based TOPIX
was down 24.82 points at 1191.59.
Resistance 3: Y110.30
Resistance 2: Y109.00
Resistance 1: Y108.20
Current price: Y107.43
Support 1: Y107.40
Support 2: Y106.80
Support 3: Y105.60
Comments: USD/JPY тестирует сильную поддержку в области Y107.30/40
(50% Фибо роста с Y105.50 до Y109.10. Пробитие этого уровня ускорит
падение курса до Y106.80 и далее – к трендовой линии поддержки с 17
марта на Y105.60 (Y105.50 – вчерашний минимум). Сопротивление можно
отметить в области 23.6% Фибо на Y108.20, далее – в районе вчерашнего
максимума на Y109.00/10. Выше восстановление возможно до Y110.30
(максимум 25 августа).
Resistance 3: Chf1.1480
Resistance 2: Chf1.1420
Resistance 1: Chf1.1370
Current price: Chf1.1300
Support 1: Chf1.1260
Support 2: Chf1.1200
Support 3: Chf1.1090
Comments: USD/CHF still holds within the upward channel from Jul 16,
limited today by Chf1.1090/Chf1.1480 (key support/resistance
respectively). Support is around session low at Chf1.1260. Below losses
may widen to Chf1.1200, then – to channel line at Chf1.1090. Resistance
comes at yesterday’s high on Chf1.1370, then – near Chf1.1420 and
channel line on Chf1.1480.
Resistance 3: $1.7920
Resistance 2: $1.7720
Resistance 1: $1.7620
Current price: $1.7558
Support 1: $1.7500
Support 2: $1.7470
Support 3: $1.7330
Comments: GBP/USD continues to hold within the downward channel from
Jul 31, limited today by $1.7330/$1.7920 (key support/resistance
respectively). Rate is under pressure after yesterday’s weak PPI
report. Support is around $1.7500/10, then – at Monday’s low on
$1.7460/70. Key support at channel line on $1.7330. Resistance comes on
$1.7620, stronger – at $1.7720 (50% Fibo of the last two days decline).
Key level comes at channel line on $1.7920.
09.09 07:06
Germany Current account (July) unadjusted, bln 11,8
Resistance 3:$1.4420
Resistance 2: $1.4280
Resistance 1: $1.4140
Current price: $1.4075
Support 1: $1.4040 Support 2: $1.3920
Support 3: $1.3840
Comments: EUR/USD fell Monday amid strong dollar's demand after the
U.S. government seized control of Fannie Mae and Freddie Mac amid the
biggest surge in mortgage defaults in at least three decades threatened
to topple the companies making up almost half the U.S. home-loan
market. Support is around session low on $1.4040. Stronger support
comes at channel line from Jul 31 on $1.3920 with a break under will
open the way to trend support line from Jan 2002 at $1.3840. Minor
resistance comes at $1.4140 (23.6% of the last two days decline).
Further rebound may reach $1.4280. Key resistance comes at Monday’s
highs on $1.4420/30.
