After posting a new life-high of $1.5915 overnight, the euro has fallen nearly two big figures to post a low around $1.5725. The euro holds at $1.5740 currently. Technical analysts at CIBC say the rejection of $1.5915 suggests a "triple top" ($1.5915 Thursday, $1.5905 March 17 and $1.,5895 March 31). "A minimum look is for euro to test support at $1.5500, but a bigger downleg could be developing; a daily close below $1.5340 should trigger another sell-off towards $1.5000," they say.

The Group of Seven meeting is a ``risk event,'' said John McCarthy, director of currency trading at ING Financial Markets LLC in New York. ``People just want to take some money off the table.''

The major indices establish new session highs. Tech stocks (+2.0%) are posting the largest gain, with consumer discretionary (+1.5%) close behind thanks to strength in retailers (+2.5%). General Electric (GE 36.95, +0.51) is leading the way ahead of its earnings report on Friday morning. Analysts expect the conglomerate's earnings will rise 16% year-over-year. Exxon Mobil (XOM 89.37, -0.33) is the worst performing stock.

The euro dropped from a record high against the dollar after European Central Bank President Jean- Claude Trichet expressed concern about exchange-rate volatility before this week's Group of Seven meeting. The ECB left its key rate at a six-year high of 4 percent today, in line with economists' forecasts. The single European currency failed to push through $1.60 after Trichet said in Frankfurt that the central bank is concerned about the ``excessive volatility of exchange rates.''
The ECB has avoided rate cuts even as concern deepened that the fallout from the U.S. subprime-mortgage crisis will spread to Europe. Consumer prices in the 15 countries that share the euro rose 3.5 percent in March from a year earlier, the fastest pace in almost 16 years.
The euro also pared gains after Trichet said there's a risk the financial-market crisis will drag on longer than anticipated and that growth in household borrowing is moderating.
The Bank of England cut its main interest rate a quarter- percentage point to 5 percent today. The pound dropped 7.8 percent against the euro this year as investors reined in growth estimates for the U.K. economy. The pound rebounded from a record low against the euro after the Bank of England said inflation will accelerate this year, stoking speculation it will be unable to cut interest rates further.
The pound rose versus Europe's common currency for the first time in a week as futures prices showed traders pared bets on lower U.K. borrowing costs, after the central bank reduced its main rate a quarter-point today to 5 percent. European Central Bank President Jean-Claude Trichet said the financial-market crisis may drag on, weighing on the euro.

ECB President Trichet offered no new suprises Thursday, saysBenjamin Reitzes of BMO Capital Markets. Reitzes take on Trichet is that "the ECB will remain reluctant to soften its hawkish stance until inflation pulls back from current 16-year highs," but "as the eurozone economy slows through mid-year and inflation retreats, look for the ECBto turn more dovish, eventually moving toward a rate cut in the second half of the year."

Has skidded to lows near $1.5745 as the dollar rebound takes on a life of its own and as the greenback carves out fresh gains across the board, laying to waste the short positions built ahead of the start of the US session. Dollar bids at $1.5750/40 noted earlier, more at $1.5700/10, a level that one trader earlier cautioned could be a dip target, although not really expecting such an objective would be seen today.

News that Yahoo and AOL are in deal talks fired up the technology sector Thursday morning, lifting the Nasdaq and keeping the broader market in the black, despite some dour March retail sales.Yahoo and Time Warner's AOL are reportedly in talks to combine their Internet operations, in a move that would challenge Microsoft's attempt at buying Yahoo. Time Warner is the parent company of CNNMoney.
In response, Microsoft is now talking with News Corp. about a joint bid for Yahoo, according to reports.Meanwhile, Yahoo is also looking at a potential advertising deal with Google.
Wal-Mart Stores said that first-quarter earnings would top forecasts. However, the world's largest retailer also reported a smaller-than-expected rise in March sales at stores open a year or more.
Among other companies, Limited Brands, Pacific Sunwear (PSUN), Gap, Saks (SKS) and Abercrombie & Fitch (ANF) all reported March sales declines.
Bed Bath & Beyond warned late Wednesday that first-quarter earnings will miss forecasts, sending shares lower in active Nasdaq trading Thursday.
Other corporate news. Lehman Brothers liquidated three funds last month, worth about $1 billion, after their assets began to deteriorate amid the credit crisis. (Full story).
Millennium Pharmaceuticals (MLNM) rallied almost 50% on news that Japan's Takeda Pharmaceutical will buy the biotech in an $8.8 billion all-cash offer.

Liviu Flesar, senior trader at E-Forex - "The Euro managed to break the key resistance at 1.5800 on yesterday and it is now consolidating its gains around the 1.5840 mark. It is obvious that the dollar is weaker than before as the Euro consolidates so close to the record high at 1.5905, therefore we are looking forward for the Euro to extend its gains past 1.59 and test 1.6 once consolidation is over. Some resistance is now formed around 1.5880 by the interim upward channel formed inside the bigger one as seen on the chart below."

The major indices are trading in mixed fashion as financials slip further into negative territory. Lehman Brothers (LEH 39.87, -0.67) is playing a role in the sector's weakness after the company said in a SEC filing that it liquidated three funds worth $1 billion dollars due to poor market conditions.
Three of the ten economic sectors are posting a gain, led by technology (+0.4%) and healthcare (+0.6%).

The pair eased to $1.5820 as market remains thin, and weak longs appear to be bailing out of positions set earlier in the day. Bids remain at $1.5800/15, market trades like buyer emerges at $1.5820, but some fear capitulation risk sub $1.5800.

The major indices unepectedly open on a high note, with the Nasdaq Composite leading the way after Intel (INTC) was upgraded to Buy from Neutral at Banc of America.

Edges up to Y100.70 area and into a layer of light supply that extends to Y100.75, ahead of better supply at Y101.50.

After falling to session lows, futures (S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -4.5. ) pare some losses immediately following the release of the weekly initial jobless claims number. Just hitting the wires, new unemployment claims for the week ended April 5 fell to 357,000 from 410,000. Economists expected a reading of 383,000. Separately, the February trade deficit grew to $62.3 billion, compared to the expected deficit of $57.5 billion. Meanwhile, Target (TGT) reported March same-store sales fell 4.4%, compared to the Briefing.com consensus that called for a delcine of 2.7%.

- Looking very closely at demand for longer term refis

- Demand to support 2008 growth but less in 2007
- Emerging economies to continue to support external demand
- Nosignificant supply constraints on bank loans

- Stronger than expected wage growth possible
- All parties must meet responsibilites
- Second round effects in wages, prices must be avoided
HICP rate to be significantly above 2.0% in months ahead
Downside risks prevail on growth, high uncertainty

The euro rose to a record against the dollar and the pound as the European Central Bank left its benchmark interest rate at a six-year high.
The dollar also fell against the yen on bets the Federal Reserve will cut borrowing costs by at least a quarter- percentage point this month. The International Monetary Fund more than halved its U.S. growth forecast and Wall Street banks said they own more securities that may be vulnerable to writedowns.

EUR/USD printed highs on $1.5909 before slided to $1.5870.

GBP/USDdroped back below $1.9800, trades back toward pre BOE announcement lows ahead of support at $1.9780. A break below here to open a deeper move toward $1.9750. Offers remain in place from above $1.9835 through to $1.9850. More offers noted between $1.9870/80. Bids $1.9780, more toward $1.9750.

USD/JPY printed lows on Y100 before rebounded to Y100.20.

high oil price not due to short supply

Drops back below $1.9800, trades back toward pre BOE announcement lows ahead of support at $1.9780. A break below here to open a deeper move toward $1.9750.
Offers remain in place from above $1.9835 through to $1.9850. More offers noted between $1.9870/80. Bids $1.9780, more toward $1.9750.

- Balance of risks justified rate cut
- Credit conditions have tightened
- Credit availability appears to be worsening
- Recent sterling drop to support net exports
- Growth prospects abroad have deteriorated

- CPI rise reflects higher food, energy, fall in sterling

The euro rose to a record against the dollar and the pound on speculation the European Central Bank will leave its benchmark interest rate at a six-year high.
The ECB will keep the main refinancing rate at a six-year high of 4 percent today, according to all 68 economists in a Bloomberg News survey. The central bank announces its decision at 11:45 GMT and President Jean-Claude Trichet holds a press conference 45 minutes later.
``The ECB is going to be on the hawkish side in their comments today,'' said Ian Stannard, senior currency strategist in London at BNP Paribas SA, France's largest bank. ``Inflation remains high and there's no strong evidence yet that the economy is slowing significantly. This will provide some support for the euro for the time being.''
The ECB has avoided rate cuts even as concern deepened that the fallout from the U.S. subprime-mortgage crisis will spread to Europe. Consumer prices in the 15 countries that share the euro rose 3.5 percent in March from a year earlier, the fastest pace in almost 16 years.
The pound extended declines versus the euro before the Bank of England decides interest rates today. Policy makers probably will cut the main rate for the third time since December as the worst housing slump since 1992 fans concern the economy is slipping into a recession. The nine-member Monetary Policy Committee, led by Governor Mervyn King, will lower the rate a quarter point to 5 percent, according to 52 to 61 economists surveyed by Bloomberg.
The dollar also fell against the yen on bets the Federal Reserve will cut borrowing costs by at least a quarter- percentage point this month. The International Monetary Fund more than halved its U.S. growth forecast and Wall Street banks said they own more securities that may be vulnerable to writedowns.

The June S&P contract was last down 4.7 points at 1355.6, with the Nasdaq June contract down 3.75 points at 1833.5.

Resistance 3: Y102.70Resistance 2: Y101.80
Resistance 1: Y101.40
Current price: Y100.30
Support 1: Y100.20

Support 2: Y100.00

Support 3: Y99.40

Comments: Dollar broke channel support line from Mar 17 at Y101.40 (strong resistance now) and continues to retreat. Key support comes at Y100.20 with a break under will widen losses to Y100.00 and Y99.40. Back above Y101.40 will resume rebound to Y101.80 and then – to Apr 07 high on Y102.70.

Resistance 3: Chf1.0170

Resistance 2: Chf1.0100
Resistance 1: Chf1.0030
Current price: Chf0.9908

Support 1: Chf0.9870
Support 2: Chf0.9760

Support 3: Chf0.9650

Comments: Dollar still under pressure, challenging Mar 31 lows near Chf0.9870. Next target lies at Chf0.9760 and around all time low at Chf0.9650.Strong resistance is around session high on Chf1.0030, then – at Chf1.0100. KeylevelcomesnearChf1.0170 (Apr 09 high).

Resistance 3: $1.9960

Resistance 2: $1.9840

Resistance 1: $1.9800
Current price: $1.9795
Support 1: $1.9730

Support 2: $1.9650
Support 3: $1.9580

Comments: Cable slowly rebounds with median resistance comes at $1.9800, then – on $1.9840. Stronger level is on channel line from Mar 14 at $1.9960. Support comes at session low on $1.9730. Below losses may extend to Apr 09 low on $1.9650. But key level comes at lower bound of the upward trend from Mar 2006 at $1.9580.

Resistance 3:$1.6000
Resistance 2: $1.5960
Resistance 1: $1.5900
Current price: $1.5883

Support 1: $1.5810
Support 2: $1.5740
Support 3: $1.5670

Comments: Euro trades a bit below records at $1.5900 (key resistance). Above there is a chance of challenging $1.5960 and then – psychological level at $1.6000. Strong support is around session low on $1.5810. Break under will widen losses to $1.5740 and then – to Apr 08 low on $1.5670.

EUR/USD: $1.5600, $1.5400
USD/JPY: Y101.80, Y102.60, Y102.10
GBP/USD: $1.9970
AUS/USD: $0.9350, $0.9280/85, $0.9250, $0.9045
USD/CAD: C$1.0120, C$0.9940
Kiwi; $0.8000, $0.7910

EUR
Bids: $1.5800, $1.5785/75, $1.5750
Offers: $1.5855/65, $1.5880, $1.5895/05

JPY
Bids: Y100.80/70
Offers: Y101.50

GBP
Bids: $1.9720, $1.9700
Offers: $1.9785/00, $1.9810

AUSSIE
Bids: $0.9280
Offers: $0.9470

- GDP: +0.5% q/q in 1Q, +0.4% in 2Q, +0.3% in 3Q.
- Average HICP: +3.3% y/y in 1Q, +3.2% in 2Q, +3.1 in 3Q.
- Industry output: +0.7% q/q in 1Q, +0.5% in 2Q, +0.4% in 3Q.
- Private consumption: +0.4% q/q in 1Q, +0.4% in 2Q, +0.3% in 3Q.

The yen rose to a one-week high against the dollar.
The British pound traded near a record low versus the euro on speculation the Bank of England will cut interest rates today, while the European Central Bank will leave borrowing costs unchanged.
Australia's dollar climbed for a seventh day, its longest stretch in almost six weeks, after a government report showed employers hired more workers than economists expected.
The dollar traded within a cent of its record low against the euro on bets the Federal Reserve will cut borrowing costs by at least a quarter-percentage point this month while the European Central Bank stays on hold today.
The International Monetary Fund more than halved its U.S. growth forecast and Wall Street banks said they own more securities that may be vulnerable to writedowns.

EUR/USD printed highs on $1.5860 before sliding to $1.5830.
GBP/USD fell from $1.9790 to $1.9725. Later rate rebounded to $1.9747.
USD/JPY printed lows on Y100/70 before rebounding to Y101.30.

The ECB will leave its main refinancing rate at 4% today, according to economists. Consumer prices in the 15 countries that share the euro rose 3.5% in March, the fastest pace in almost 16 years.
BOE policy makers will cut the 5.25% main rate by a quarter-percentage point, according to the median forecast of economists. Former Chancellor of the Exchequer Nigel Lawson said yesterday that Britain is headed for a ``prolonged'' recession.

Japanese stock indices ended Thursday's session lower across the board Thursday, as the yen again rose against the dollar. The benchmark Nikkei 225 was down 166.59 points, or 1.27%, at 12945.30. The broader-based TOPIX gave up 14.83 points to stand at 1248.07.

Stock market fixing:
Topix -19.79 -1.50% 1,262.90
NIKKEI 225 -138.54 -1.05% 13,111.89
FTSE 100 +36.80 +0.61% 5,983.90
XETRA-DAX -50.62 -0.75% 6,721.36
CAC 40 -37.72 -0.77% 4,874.97
Dow -49.18 -0.39% 12,527.26
NASDAQ -26.64 -1.13% 2,322.12
S&P -11.05 -0.81% 1,354.49
Gold (CMX )June 08 ($US per Troy oz.) 938.00 +20.00
Light Crude (NYM ) May 08 ($US per bbl.) 110.85 +2.35

Japan stock market continued to retreat Wednesday, led by building sector amid concerns weakening growth will cut profits.
Obayashi Corp. declined the most in 8 years after it announced the earnings decline.
Tokyu Land Corp. led the developing sector down after Credit Suisse Group cut its rating.
Meanwhile, Aichi Machine Industry Co. rose after the earnings exceeded the analysts estimate.

EU stocks declined Wednesday too amid sell-off in financial group on speculations possible recession, credit market collapse and record oil process will cut profits.
Swiss Reinsurance Co. and HBOS Plc lost the most among the insurance and banks as analysts downgraded their stocks.
But BP Plc led the energy sector higher after the oil prices rose above $111 per barrel.

Stocks fell Wedbesday on a profit warning by bellwether parcel delivery company UPS, which raised fears that more weak corporate earnings are in store.
The Wall Street Journal reported that the Federal Reserve is considering contingency plans for expanding its lending power in the event its recent steps to unfreeze credit markets fail. The report comes after the release of minutes Tuesday of the March 18 Fed meeting showed policymakers at the central bank worried about the risk of a "severe and protracted" economic downturn that could last into 2009.
Alcoa set the tone Monday when the Dow component reported a 54% decrease in net income. That was followed by profit warnings by chipmaker AMD on Monday and parcel delivery service UPS on Tuesday.
UPS shares fell more than 3% after the parcel carrier said Tuesday that it expects lower quarterly profits and will cut jobs due to higher fuel costs and falling volume.
Shares of Citigroup were moderately higher after reports indicated that the bank is close to a deal to unload $12 billion of risky leveraged loans and bonds to a group of private-equity firms.
Fellow Dow component Boeing gained nearly 4% despite reports that the plane maker will delay the launch of its highly anticipated 787 model commercial aircraft.

The dollar fell within a cent of the all-time low against the euro on renewed concern deepening credit market losses will hurt the economy.
The yen and Swiss franc rose against most of the major currencies after Standard & Poor's downgraded the three largest U.S. mortgage insurers yesterday, encouraging investors to pare holdings of higher-yielding assets funded by loans in Japan and Switzerland. The pound fell to a record versus the euro as a report showed U.K. consumer confidence dropped.
The British pound weakened for the first time as an industry report showed U.K. consumer confidence slid to the lowest level in almost four years before the Bank of England's meeting today.
The dollar weakened against the euro as the International Monetary Fund cut the U.S. economic growth forecast for 2009 in its World Economic Outlook report released today and said the currency was ``somewhat on the strong side.''
The minutes of Federal Reserve's March meeting released Tuesday showed policy makers anticipated a first-half contraction even though the bank has reduced the fed funds rate 3% since September, pumped $628 billion through the financial system and allowed securities firms to borrow directly from it for the first time since its creation in 1913.
Traders added to bets that the Federal Reserve will lower the target rate for overnight lending between banks by a half- percentage point to 1.75 percent at its April 30 meeting. The odds of such a cut were 44 percent, compared with 12 percent a week ago, futures on the Chicago Board of Trade showed. The rest of the bets are for a quarter-point reduction.
The euro may soon reach a target of $1.63, according to Andrew Chaveriat, a currency strategist in New York at BNP Paribas Securities SA, France's biggest bank.

EUR/USD rose from $1.5695 to $1.5740, but retreated soon. Later the rise was resumed and rate printed new session high on $1.5860, a bit off record. By the end of the day euro corrected to $1.5811.
GBP/USD also strengthened, but not so fast as the euro did. Pound rose from $1.9650 to $1.9790 before set stable near $1.9740.
USD/JPY fell from Y102.80 to Y101.50 before set near Y101.90.

The ECB will leave its main refinancing rate at 4% today, according to economists. Consumer prices in the 15 countries that share the euro rose 3.5% in March, the fastest pace in almost 16 years.
BOE policy makers will cut the 5.25% main rate by a quarter-percentage point, according to the median forecast of economists. Former Chancellor of the Exchequer Nigel Lawson said yesterday that Britain is headed for a ``prolonged'' recession.

Resistance 3: Y102.70
Resistance 2: Y101.80
Resistance 1: Y101.40
Current price: Y100.90
Support 1: Y100.80
Support 2: Y100.00
Support 3: Y99.40
Comments: Dollar broke channel support line from Mar 17 at Y101.40 (strong resistance now) and continues to retreat. Key support comes at Y100.80 with a break under will widen losses to Y100.00 and Y99.40. Back above Y101.40 will resume rebound to Y101.80 and then – to Apr 07 high on Y102.70.

Resistance 3: Chf1.0170
Resistance 2: Chf1.0100
Resistance 1: Chf1.0030
Current price: Chf0.9978
Support 1: Chf0.9980
Support 2: Chf0.9940
Support 3: Chf0.9870
Comments: Dollar still under pressure, challenging strong support at Chf0.9980. Break under will widen losses to Chf0.9940 and then – to Mar 31 lows near Chf0.9870. Strong resistance is around session high on Chf1.0030, then – at Chf1.0100. Key level comes near Chf1.0170 (Apr 09 high).

Resistance 3: $1.9960
Resistance 2: $1.9840
Resistance 1: $1.9800
Current price: $1.9751
Support 1: $1.9730
Support 2: $1.9650
Support 3: $1.9580
Comments: Cable slowly rebounds with median resistance comes at $1.9800, then – on $1.9840. Stronger level is on channel line from Mar 14 at $1.9960. Support comes at session low on $1.9730. Below losses may extend to Apr 09 low on $1.9650. But key level comes at lower bound of the upward trend from Mar 2006 at $1.9580.

Resistance 3:$1.6000
Resistance 2: $1.5960
Resistance 1: $1.5900
Current price: $1.5843
Support 1: $1.5810
Support 2: $1.5740
Support 3: $1.5670
Comments: Euro consolidates a bit below records at $1.5900 (key resistance). Above there is a chance of challenging $1.5960 and then – psychological level at $1.6000. Strong support is around session low on $1.5810. Break under will widen losses to $1.5740 and then – to Apr 08 low on $1.5670.

High Low Close
EUR/USD 1.5863 1.5683 1.5835
USD/JPY 102.81 101.49 101.71
GBP/USD 1.9790 1.9650 1.9749
USD/CHF 1.0167 0.9974 1.0008

EUR/JPY 161.44 160.59 161.07
EUR/GBP 0.8021 0.7966 0.8015
GBP/JPY 202.56 200.59 200.90
GBP/CHF 2.0003 1.9721 1.9766

Change % Change Last
Topix -19.79 -1.50% 1,262.90
NIKKEI 225 -138.54 -1.05% 13,111.89
FTSE 100 +36.80 +0.61% 5,983.90
XETRA-DAX -50.62 -0.75% 6,721.36
CAC 40 -37.72 -0.77% 4,874.97
Dow -49.18 -0.39% 12,527.26
NASDAQ -26.64 -1.13% 2,322.12
S&P -11.05 -0.81% 1,354.49
Gold (CMX )June 08 ($US per Troy oz.) 938.00 +20.00
Light Crude (NYM ) May 08 ($US per bbl.) 110.85 +2.35

06:45 France Industrial production (February) - 0.5%
06:45 France Industrial production (February) Y/Y - 2.7%
08:00 Italy Industrial production (February) adjusted - 1.3%
08:00 Italy Industrial production (February) Y/Y adjusted - 0.5%
08:30 UK Trade in goods (February), bln -7.5 -7.5
08:30 UK Non-EU trade (February), bln -4.3 -4.3
11:00 UK BoE meeting announcement 5.00% 5.25%
11:45 EU(15) ECB meeting announcement 4.00% 4.00%
12:30 EU(15) ECB press conference
12:30 USA Jobless claims (week to 05.04) 385K 407K
12:30 USA International trade (February), bln -57.5 -58.2
12:30 USA Export (February), bln - 148.2
12:30 USA Import (February), bln - 206.4
18:00 USA Federal budget (March), bln -75.0 -175.6
20:30 USA M2 money supply (31.03), bln - +32.2
23:50 Japan Corporate goods price index (CGPI) (March) domestic - 0.4%
23:50 Japan Corporate goods price index (CGPI) (March) domestic Y/Y - 3.4%