From ML economist David Rosenberg: "Today's batch of manufacturing reports are calling into question the ability of the export boom to sustain activity in the face of the material slowing in domestic demand, in our view. Meanwhile, the slow seepage of jobs from

the economy is ongoing, with the latest jobless claims data suggesting another negative payroll print in the 30k to 70k range."

After moving a leg higher, the stock market is dropping back to previous levels. The sudden selling pressure is broad-based.
Oil has reclaimed its losses; crude is currently near the unchanged mark of $124.20 per barrel. Gold, on the other hand, is up 1.7% to $881.50 per ounce. The CRB Commodity Index is down 0.4% this session.

Earlier in the day, the contract traded at $126.64.

``Today's strong German growth data was clearly bullish for the euro,'' said Daragh Maher, a senior currency strategist in London at Calyon, the investment-banking unit of Credit Agricole SA, France's third-biggest lender. Gross domestic product in Germany rose 1.5 percent from the fourth quarter, the most since 1996, the Federal Statistics Office in Wiesbaden said today.

The stock market is trading near session highs as crude oil prices fall 1.8%.
Eight of the ten economic sectors at trading at or near their session peak. Meanwhile, energy (-0.2%) and materials (+0.5%) have been trending lower, and are now trading near their session troughs.
There has been notable strength within large-cap tech names, as the Nasdaq 100 advances 1.2%. Heavyweights Microsoft (MSFT 30.38, +0.45), Apple (AAPL 188.51, +2.25) and Qualcomm (QCOM 44.83, +0.70) are lending support.

The dollar fell against the yen and the euro as reports showed U.S. industrial production dropped in April more than twice as much as forecast and New York manufacturing unexpectedly contracted this month.
The currency has traded in a range of $1.53 to $1.56 per euro this month as Federal Reserve policy makers cited the risk of inflation while the U.S. economy showed signs of weakness. Canada's dollar rose to near the strongest level versus the greenback since March as crude oil prices surged.
``The market has focused on inflation for the past couple of weeks, and now the data is reintroducing the idea that the U.S. economy is on a softer footing,'' said Mike Moran, senior currency strategist at Standard Chartered Bank in New York. ``The dollar has had ample opportunity to build on the rebound, but it has struggled to make any kind of headway.''
Consumer prices rose 3.9 percent in April from a year earlier, compared with an average rate of 2.7 percent over the past decade, a Commerce Department report showed yesterday. Cleveland Fed President Sandra Pianalto said on May 13 that prices are rising ``somewhat faster than I would prefer.''
The dollar weakened versus the yen and the euro as the Fed reported a 0.7 percent decrease in production at U.S. factories, mines and utilities last month, following a revised 0.2 percent gain in March. The New York Fed's general economic index, a gauge of manufacturing, declined to minus 3.2 in May, from 0.6 the prior month. Readings below zero signal contraction.
The U.S. currency pared its loss against the euro as the Philadelphia Fed reported its index of manufacturing registered at minus 15.6 in May, compared with minus 19 forecast by economists. A negative number indicates contraction.
``The economy is stagnant,'' said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. ``The market is pricing in some form of rate hikes later this year. They have to be eventually priced out. The dollar will stay on the soft side.''
The euro strengthened earlier as a report showed Europe's economy grew more than forecast in the first quarter, increasing the likelihood the European Central Bank will hold interest rates at a six-year high.

The stock market made a nice move higher, but has taken a step back. Buying picked up after the Department of Energy announced natural gas inventories were greater than analysts had forecast.
The energy sector (+0.2%), which had been a session leader, took a dive on the news.
Crude prices also reversed course. Oil had been trading above $125 per barrel for the session, but is now below $123 per barrel. For the session, oil is down roughly 1.6%.

"Jobless claims, Philly Fed, Empire Manufacturing and industrial production releases all suggest the economy remains stuck in a rut. None suggest the economy is getting any weaker than it was in the first quarter, but none point to any improvement, either."

The stock market has made a gradual advance to reach its best level of the session. The tech-rich Nasdaq, now up 0.9%, is outperforming the S&P 500 and the Dow Jones.
Microsoft (MSFT 30.34, +0.41) is providing tech with the most leadership. The tech sector is up 1.2%.
Media company CBS Corp. (CBS 24.12, -0.70) announced it is acquiring Internet news company CNET News (CNET 11.41, +3.46) for $1.8 billion, or $11.50 per share. Shares of CBS are trading lower, but CNET is trading higher to reflect the rich bid.

Commodity prices. U.S. light crude oil for June delivery rose as high as $126.64 a barrel in electronic trading before pulling back a bit. Meanwhile, the national average price for a gallon of regular unleaded gas rose to a record $3.776.
Jobless claims. The number of Americans filing new claims for unemployment rose 6,000 last week to 371,000, just topping forecasts for a rise to 370,000.
Manufacturing. The NY Empire State index, a regional read on manufacturing, came in at minus 3.2, versus forecasts for a flat reading. Any negative reading indicates weakness in the sector.
Yahoo under pressure. Activist shareholder Carl Icahn is launching a campaign against the Internet company's board of directors so as to restart deal talk with would-be buyout partner Microsoft. Yahoo (YHOO, Fortune 500).
CBS buying CNet. The broadcaster is buying the Internet company for $1.8 billion in cash, in a deal that will make CBS one of the top 10 web companies in the U.S. CBS (CBS, Fortune 500). CNet (CNET).
GE could sell appliance division. The conglomerate has reportedly hired Goldman Sachs to seek buyers for the sale of its business, which could be worth between $5 billion and $8 billion. GE

Trading continues to lack conviction as the stock market moves sideways. Energy continues to outperform the other sectors, up 1.6% to a session high.
Transocean (RIG 153.95, +6.75) is lending support to the energy sector. Transocean recently received a Buy rating at UBS. Oil giant and Dow Jones component Exxon Mobil (XOM 90.90, +0.99) is also providing leadership.
Fellow Dow component General Electric (GE 32.34, -0.17) has succumbed to selling interest after trading higher in premarket activity. The company announced it is putting its appliances business up for sale.

They continue to look for "a general US dollar recovery against many G-10 currencies" and maintain that "for H2 2008, the weakness in the US economy has mostly been factored into the dollar, while the deterioration elsewhere should be built in." The dollar may rebound even though the US economy is likely to remain relatively weak. Their end of June, Sept and December euro forecasts remain unchanged at $1.55, $1.51 and $1.48 respectively, but their 2009 forecasts (March, June, Sept, Dec) have been raised to $1.42, $1.40, $1.38 and $1.33 from $1.40, $1.33, $1.30 and $1.28. In dollar-yen, a currency pair where the greenback will not be as buoyant, Merrill's June, Sept and Dec 2008 forecast is now Y103, Y103 and Y102 vs Y102 in all three periods previously. Their 2009 dollar-yen forecasts (March, June, Sept Dec) remain unchanged at Y100, Y98, Y98, Y98.

Stocks continue to trade listlessly; the S&P 500 is largely unchanged from earlier levels. Advancing stocks in the S&P 500 are relatively in-line with the number of decliners.
Mid-cap stocks are outperforming the major indices. The S&P 400 is up more than four points, or 0.5%, this session.

The stock market is trending higher. Still, the move is modest. The Philadelphia Fed Survey, an index for regional manufacturing conditions, posted a reading of -15.6 for May. Economists, on average, were expecting a reading of -19.0. The prior month's reading was unrevised at -24.9.

- 2009 world growth may be less than IMF estimate
- Eurozone not immune to US slowdown
- Possible high food prices to continue for a while
- Financing conditions have deteriorated in EU
- EU exports affected by lower US growth, weaker dollar
- Strong euro offers some counterweight to world prices
- End of US housing market problems not yet in sight
- Danger of second round effects exist

- EU ECON PROSPECTS RELATIVELY FAVOURABLE
- BUT MORE REFORMS WOULD IMPROVE ECON DYNAMISM

May Philly Fed Survey shows

new orders -3.7
employment -1.0

shipments +2.2

Prices Paid 53.8 vs 51.6 in Apr.

EUR/USD $1.5300
USD/JPY Y104.00
EUR/JPY Y159.00
GBP/USD $1.9760
AUD/USD $0.9340, $0.9370, $0.9475
USD/CAD C$1.0070

Stock futures were higher Thursday as better-than-expected results from retailer J.C. Penney and video rental chain Blockbuster offset a weak reading on the U.S. job market.
On the earnings front, department store operator J.C. Penney saw its first-quarter results cut in half. The company blamed a pullback in consumer spending. The results, however, were not bad as some analysts had feared.
Kohl's and Nordstrom are set to report after the closing bell. Investors will be looking for clues about how consumers are holding up amid the economic downturn.
Other companies to watch Thursday include CNET Networks (CNET). CBS Corp. announced before the opening bell it plans to acquire the media company for about $1.8 billion. CNET shares surged 43% in premarket trading.
In other corporate news, activist investor Carl Icahn reportedly plans to launch a battle to unseat Yahoo's board, with the aim of getting the company to restart deal talks with Microsoft.
General Electric plans to sell its appliance division, according to a published report. The sale of the unit could bring in between $5 billion and $8 billion, the Wall Street Journal said.
Oil prices headed higher in electronic trading. U.S. crude for June rose 75 cents to $124.97 a barrel.

Getting further talk suggesting $1.5500 holds expiry interest for the NY cut (1400GMT). Rate got a push back up to $1.5490, from around $1.5480, on US data release, but just as quickly pares back react gains. Bids now seen placed at $1.5465 (earlier pullback lows), with further interest noted from $1.5450 and layered down to $1.5410.

The next data was issued

06:00 Germany CPI (April) final -0,2% -0.2% -0.2%
06:00 Germany CPI (April) final Y/Y 2,4% 2.4% 2.4%
06:00 Germany HICP (April) final Y/Y 2,6% 2.6% 2.6%
06:00 Germany GDP (Q1) flash 1,5% 0.3%
06:00 Germany GDP (Q1) flash Y/Y adjusted 2,6% 1.8%
06:50 France prel 1Q GDP 2.2%
09:00 EU(15) Harmonized CPI (April) final 0.3% 1.0%
09:00 EU(15) Harmonized CPI (April) final Y/Y 3.3% 3.3% 3.6%
09:00 EU(15) Harmonized CPI ex EFAT (April) Y/Y 1.6% 2.0%
09:00 EU(13) GDP (Q1) flash 0.7% 0.4%
09:00 EU(13) GDP (Q1) flash Y/Y 2.2% 2.3%

The dollar was little changed against the euro before U.S. government report forecast to show a drop in industrial production and an increase in unemployment clams.

The euro rose for the first time in three days against the dollar after Europe's economy grew more than forecast, reducing the chances that the European Central Bank will lower interest rates. The single currency also traded near a one-week high versus the yen after data showed German's economy expanded at the fastest rate in 12 years in the first quarter. Data today showed European consumer prices rose 3.3 percent in April from a year earlier, slowing from 3.6 percent the previous month.
The U.S. dollar fell against the yen before reports that may show industrial production shrank, eroding expectations for the Federal Reserve to raise interest rates.

EUR/USD: Opened in early Europe around $1.5487. Release of German GDP in early Europe (real s/adj 1Q GDP surprisedwith an above expectation 1.5% on the quarter) gave rate an added boost, taking it above $1.5500 and on to $1.5520 initially, added demand from sovereign names taking it up to $1.5547 high. Euro-dollar ended the morning slipping back to trade around $1.5490. Bids $1.5480, $1.5450, offers $1.5550, stops through $1.5555
GBP/USD: Opened early Europe at $1.9465 with a later push on to $1.9489 in early Europe, as rate received an added lift from euro-dollar's react to stronger than expected German Q1 GDP. Move saw cable pop up to $1.9501 but rally was short lived with it quickly giving back gains as it tracked euro-dollar lower, trading down to $1.9450. Sterling got a late morning lift edging to $1.9490. Cable bids $1.9430/20. Offers $1.9500/05, $1.9520/25.
USD/JPY: Opened in early Europe around Y104.91.European dealing saw fresh lows for the day as the dollar came under early pressure across the board, dollar-yen sliding to Y104.57, finding a base in line with Wednesday's low. Later dollar-yen edged back above Y105.00. Dlr-yen offers Y105.30, Y105.50/60, stops Y105.70, bids Y104.60/50

US data starts at 1230GMT with the weekly jobless claims data and the New York Fed Empire State survey for May. Initial claims are expected to rise 5,000 to 370,000 in the May 10 week, while the Empire State Index is forecast to fall to a reading of -2.0 after moving only slightly above 0.0 in the previous month. The Canada manufacturing survey for March is due at the same time, while US data also sees the 1300GMT release of the Treasury International Capital System data for March.
Further US data is due at 1400GMT with the Philadelphia Fed Business Outlook Survey for May and first-quarter 2008 E-Commerce data. The Philadelphia Fed index is expected to rise to a still-weak reading of -20.0 in May after falling to -24.9 in April.

EUR/USD $1.5300
USD/JPY Y104.00
EUR/JPY Y159.00
GBP/USD $1.9760
AUD/USD $0.9340, $0.9370, $0.9475
USD/CAD C$1.0070

- Must remain cautious and prudent
- We are confirmed in our analysis
- I won't anticipate Staff projections
- Vindicated in our view of very resilient 1Q in eurozone
- 1Q EU pick up to be followed by slowdown in 2Q

The euro rose for the first time in three days against the dollar after Europe's economy grew more than forecast, reducing the chances that the European Central Bank will lower interest rates.
The single currency also traded near a one-week high versus the yen after data showed German's economy expanded at the fastest rate in 12 years in the first quarter. The New Zealand dollar dropped for a seventh day on speculation the nation's central bank will reduce borrowing costs this year after retail sales slumped.
The kiwi, as New Zealand's currency is known, fell to as low as 75.63 U.S. cents, the weakest since Jan. 23, after retail sales in March contracted 1.2 percent, three times more than economists estimated.
The ECB has avoided interest-rate cuts since last year, keeping its main refinancing rate at a more-than six-year high of 4 percent, to curb inflation. Data today showed European consumer prices rose 3.3 percent in April from a year earlier, slowing from 3.6 percent the previous month.
The U.S. dollar fell against the yen before reports that may show industrial production shrank, eroding expectations for the Federal Reserve to raise interest rates.
Futures on the Chicago Board of Trade show 94 percent odds that the Fed will hold its target lending rate at 2 percent at its next meeting on June 25. The balance of bets was for a reduction of a quarter-percentage point. There was a 28.6 percent chance of an increase to 2.25 percent in September.
The yen may decline to 107 per dollar by early June should it fall through 105.70, based on charts that traders use to predict price movements, said Eiji Kinouchi, chief technical analyst at Daiwa Institute of Research, a unit of Japan's second-largest brokerage.
The dollar will strengthen against most of the major currencies in the next six months as the Fed stops reducing interest rates, a survey of Bloomberg users showed.

- Euro overvaluation should help imports into EU

Resistance 3: Y107.40

Resistance 2: Y106.40
Resistance 1: Y105.40
Current price: Y104.97
Support 1: Y104.50

Support 2: Y103.40

Support 3: Y102.60

Comments: Dollar rebounds. Support is near yesterday’s low on Y104.50, then – at Y103.40 with a break under will widen losses to Y102.60. The nearest resistance is trend line from Oct 2007 at Y105.40. Break above will rally dollar to Y106.40 and Y107.40.

- Not only quarterly GDP results that count
- 2Q EU GDP 'might be different from 1Q'

EU inflation has brought competition problem

Resistance 3: Chf1.0730
Resistance 2: Chf1.0660
Resistance 1: Chf1.0500Current price: Chf1.0548

Support 1: Chf1.0480
Support 2: Chf1.0400

Support 3: Chf1.0320

Comments: Dollar rebounds. Now support comes at Chf1.0480, stronger – on Chf1.0400, then – at Chf1.0320. Back above Chf1.0600 will target Chf1.0660. Stronger level comes at Chf1.0730.

Resistance 3: $1.9780
Resistance 2: $1.9600
Resistance 1: $1.9500
Current price: $1.9478
Support 1: $1.9430Support 2: $1.9360
Support 3: $1.9280Comments: Cable advances. Resistance comes at recent high on $1.9500. Above there is a room for a rise up to $1.9600 and $1.9780.The nearest support is today's low at $1.9430. Medium support comes near yesterday’s lows on $1.9360 (also Feb lows). Break under will widen losses till $1.9280 and $1.9180.

Resistance 3:$1.5640
Resistance 2: $1.5590
Resistance 1: $1.5570
Current price: $1.5506

Support 1: $1.5400
Support 2: $1.5365
Support 3: $1.5280

Comments: Euro rettreats after priting highs. However the nearest serious resistance is Monday’s high on $1.5570. Above the rate may rise to May 6 high at $1.5590 and to the key level $1.5640 (50% of the resent fall from $1.6017 to $1.5280). Support comes at yesterday’s low on $1.5400. Further sales may widen till $1.5365 and Friday’s low on $1.5280.

EUR/USD $1.5300
USD/JPY Y104.00
EUR/JPY Y159.00
GBP/USD $1.9760
AUD/USD $0.9340, $0.9370, $0.9475
USD/CAD C$1.0070

EUR
Bids: $1.5515, $1.5500, $1.5480
Offers: $1.5570/80, $1.5595/05, $1.5620/25

JPY
Bids: Y104.60/40
Offers: Y105.40, Y105.60

GBP
Bids: $1.9430/20, $1.9450
Offers: $1.9525, $1.9550/60

AUSSIE
Bids: $0.9300
Offers: $0.9420/25

"The directions of output, inflation, credit growth and bond yields suggest that there is likely to be more pain ahead across the board. The Feds actions will likely succeed in keeping the US from going into a deep recession. However, this monetary easing is more aggressive than historical precedents and will likely spill over into higher inflation, pulling bond yields higher."

1.If no further shocks, HICP to go down towards 2.0%
2.Euro area potential growth too low

The euro climbed against the dollar after a report showed German first-quarter economic growth accelerated to the fastest pace in 12 years, making it less likely the European Central Bank will lower interest rates.
The euro traded near a one-week high versus the yen before a separate report that economists estimate will show European consumer prices increased at a faster rate than the ECB's target.
Gross domestic product in Germany, Europe's largest economy, rose 1.5% from the fourth quarter, when it increased 0.3%, the Federal Statistics Office in Wiesbaden said today.
GDP in the euro area increased 0.5% from the fourth quarter, according to a survey before data due today.

EUR/USD printed lows near $1.5440 before it rose sharply to $1.5540.
GBP/USD also strengthened from $1.9430 to $1.9470/80.
USD/JPY fell from Y105.30 to Y104.50/60.

The U.S. dollar was little changed against the yen before reports that may show industrial production shrank, eroding expectations for the Federal Reserve to raise interest rates. U.S. industrial production fell 0.3% in April after a 0.3% gain in the previous month, according to a survey. A separate report may show manufacturing in the Philadelphia area contracted for the sixth month in May, another survey shows.
Futures on the Chicago Board of Trade showed yesterday 92% odds that the Fed will hold its target lending rate at 2% at its next meeting on June 25.

Japan's benchmark stock indices ended Thursday's session higher across the board, although sliding from the session's best levels on profit-taking. The benchmark Nikkei 225 gained 133.19 points, or 0.94%, to stand at 14215.74. The broader-based TOPIX was higher by 19.99 points at 1393.03.

Stock market fixing:
Nikkei 225 +164.82 +1.2% 14,118.55
Topix +12.99 +1% 1,373.04
FTSE 100 +4.10 +0.07% 6,216.00
CAC 40 +56.57 +1.13% 5,055.24
Xetra Dax +23.05 +0.33% 7,083.24
DOW +66.20 +0.52% 12,898.38
NASDAQ +1.58 +0.06% 2,496.70
S&P 500 +5.62 +0.40% 1,408.66
10yr Note +0.2900 +0.074% 3.938%
NYMEX Crude Oil -1.58 -1.26% 124.22
Gold -3.10 -0.36% 866.50

Japanese stocks rose for a third day as investors snatched up companies offering dividends and share buybacks, and Inpex Holdings Inc. climbed to a record after saying its gas reserves were larger than expected.
Nippon Telegraph & Telephone Co. soared the most in a decade after raising its dividend by a fifth. Japan Securities Finance Co. gained after saying it will spend most of its profit on dividends. Mitsubishi UFJ Financial Group Inc. sent banks lower on a newspaper report it may book bigger-than-expected losses on security investments.
Inpex gained 3.9%, the highest since it listed on the exchange in April 2006.
Canon Inc. advanced 2.2%, the highest since Dec. 17. Honda Motor Co. added 3.1%.
Mitsubishi UFJ dived 2%, while smaller rival Mizuho Financial Group Inc. slumped 1.2%. Nomura Holdings Inc. lost 2%.

European stocks advanced for the second day this week after earnings from BNP Paribas SA topped estimates, takeover speculation lifted mining shares and a report on U.S. consumer prices suggested inflation may be contained.
BNP Paribas, France's largest bank, gained the most in six weeks, while BHP Billiton Ltd. climbed to a record on speculation Aluminum Corp. of China may buy a stake. Volkswagen AG, Europe's largest carmaker, and consumer-electronics maker Royal Philips Electronics NV advanced after consumer prices rose last month less than economists forecast in the world's largest economy.
BNP Paribas climbed 4.9%. The company reported a 21% to 1.98 billion euros ($3.1 billion) in first-quarter profit.
ING Groep NV rose 3.9%. The biggest Dutch financial-services firm had first-quarter profit of 1.54 billion euros. That was in-line with 1.56 billion euros from a survey of analysts.
BHP Billiton, seeking to buy Rio Tinto Group for $178 billion, jumped 4.9% on speculation Aluminum Corp. of China, also known by Chinalco, may buy a stake.
Rio Tinto rose 3.6% after BHP Billiton Chief Executive Officer Marius Kloppers wouldn't exclude adding cash to his all-stock offer for the world's third-biggest mining company.

Stocks on Wall Street rose on reaction to a lower than expected inflation reading.
April CPI rose 0.2% month-over-month, compared to the expected rise of 0.3%.Excluding fuel and energy costs, CPI rose 0.1%, compared to the expected 0.2% increase. CPI is up 3.9% compared to last year, and CPI ex food and energy is up 2.3%. Separately, Macy's reported first quarter earnings of $0.02 per share, excluding nonrecurring items, which topped expectations by four cents.The company reaffirmed its guidance for full year 2009, as it expects to earn between $1.85 and $2.15 per share.
In earnings news, Freddie Mac reported a smaller-than-expected loss of $0.66 per share, compared to the consensus estimate that called for a loss of $0.93.The company expects to raise $5.5 billion in capital in the near future.Meanwhile, Deere and Whole Foods missed their estimates, while Electronic Arts came out ahead of expectations.

The dollar rose to a one-week high against the yen as an advance in U.S. stocks encouraged investors to buy higher-yielding assets funded in Japan.
The 15-nation euro is overvalued by as much as 20 percent against the dollar, French Finance Minister Christine Lagarde said late yesterday. The Australian dollar fell against the Canadian dollar, the U.S. dollar and the pound as wage growth unexpectedly slowed last quarter.
The dollar erased earlier gains versus the euro, in what analysts said was a knee-jerk reaction to the CPI report.
The yen fell broadly on Wednesday as a benign U.S. consumer inflation report for April raised investors' appetite for risk and was seen giving the Federal Reserve flexibility to deal with an economic downturn.
The unexpectedly slower increase in the consumer price index (CPI) briefly caused traders to sell the dollar, but analysts said it did not alter market views the Fed's interest-rate-cutting campaign was almost over.
Sterling slumped to a near three-month low against the dollar after the Bank of England, in its quarterly inflation report, said British prices would shoot up this year, which many believe may delay interest rate cuts.

EUR/USD having posted session low at $1.5395 rose to $1.5480/90.
GBP/USD tested $1.9360 before rebounded back above $1.9410/20. Later rate reached $1.9470.
USD/JPY reached Y105.45 before stabilized around Y104.80.

Thursday is full by economic releases. EU session includes GDP report from EU.
Later (at 12:30 GMT), US Treasuries will release its TICS figures. Industrial production and Philly Fed’s index also due to come.

Resistance 3: Y107.40
Resistance 2: Y106.40
Resistance 1: Y105.40
Current price: Y104.70
Support 1: Y104.50
Support 2: Y103.40
Support 3: Y102.60
Comments: Dollar retreats. Support is near yesterday’s low on Y104.50, then – at Y103.40 with a break under will widen losses to Y102.60. The nearest resistance is trend line from Oct 2007 at Y105.40. Break above will rally dollar to Y106.40 and Y107.40.

Resistance 3: Chf1.0730
Resistance 2: Chf1.0600
Resistance 1: Chf1.0520
Current price: Chf1.0507
Support 1: Chf1.0470
Support 2: Chf1.0400
Support 3: Chf1.0320
Comments: Dollar slides, passing through support at Chf1.0520 (now resistance). Now support comes at Chf1.0470, stronger – on Chf1.0400, then – at Chf1.0320. Back above Chf1.0520 will target Chf1.0600. Stronger level comes at Chf1.0730.

Resistance 3: $1.9780
Resistance 2: $1.9600
Resistance 1: $1.9500
Current price: $1.9472
Support 1: $1.9360
Support 2: $1.9280
Support 3: $1.9180
Comments: Cable rises. Resistance comes at recent high on $1.9500. Above there is a room for a rise up to $1.9600 and $1.9780. Support comes near yesterday’s lows on $1.9360 (also Feb lows). Break under will widen losses till $1.9280 and $1.9180.

Resistance 3:$1.5640
Resistance 2: $1.5590
Resistance 1: $1.5570
Current price: $1.5490
Support 1: $1.5400
Support 2: $1.5365
Support 3: $1.5280
Comments: Euro rebounds. Monday’s high on $1.5570 is quite a strong resistance. Above the rate may rise to May 6 high at $1.5590 and to the key level $1.5640 (50% of the resent fall from $1.6017 to $1.5280). Support comes at yesterday’s low on $1.5400. Further sales may widen till $1.5365 and Friday’s low on $1.5280.

High Low Close
EUR/USD 1.5484 1.5395 1.5478
USD/JPY 105.44 104.57 104.96
GBP/USD 1.9472 1.9362 1.9464
USD/CHF 1.0598 1.0511 1.0542

EUR/JPY 162.86 161.70 162.48
EUR/GBP 0.7964 0.7924 0.7949
GBP/JPY 204.97 203.38 204.33
GBP/CHF 2.0578 2.0445 2.0521

Change % Change Last
Nikkei 225 +164.82 +1.2% 14,118.55
Topix +12.99 +1% 1,373.04
FTSE 100 +4.10 +0.07% 6,216.00
CAC 40 +56.57 +1.13% 5,055.24
Xetra Dax +23.05 +0.33% 7,083.24
DOW +66.20 +0.52% 12,898.38
NASDAQ +1.58 +0.06% 2,496.70
S&P 500 +5.62 +0.40% 1,408.66
10yr Note +0.2900 +0.074% 3.938%
NYMEX Crude Oil -1.58 -1.26% 124.22
Gold -3.10 -0.36% 866.50

06:00 Germany CPI (April) final -0.2% -0.2%
06:00 Germany CPI (April) final Y/Y 2.4% 2.4%
06:00 Germany HICP (April) final Y/Y 2.6% 2.6%
06:00 Germany GDP (Q1) flash - 0.3%
06:00 Germany GDP (Q1) flash Y/Y adjusted - 1.8%
06:00 Germany GDP (Q1) flash Y/Y unadjusted - 1.6%
06:45 France GDP (Q1) flash 0.4% 0.3%
06:45 France GDP (Q1) flash Y/Y 1.9% 2.1%
09:00 EU(15) Harmonized CPI (April) final - 1.0%
09:00 EU(15) Harmonized CPI (April) final Y/Y 3.3% 3.6%
09:00 EU(15) Harmonized CPI ex EFAT (April) Y/Y - 2.0%
09:00 EU(15) GDP (Q1) flash 0.5% 0.4%
09:00 EU(15) GDP (Q1) flash Y/Y 1.9% 2.3%
12:30 USA Jobless claims (week to 10.05) 368K 365K
12:30 USA NY Fed Empire State manufacturing index (May) 0.8 0.6
13:00 USA TICS (March), bln - 64.1
13:00 USA TICS long-term (March), bln - 72.5
13:15 USA Industrial production (April) -0.3% 0.3%
13:15 USA Capacity utilisation (April) 80.2 80.5
14:00 USA Philadelphia Fed index (May) -20.0 -24.9
20:30 USA M2 money supply (05.05), bln -
23:50 Japan Real GDP (Q1) preliminary - 0.9%
23:50 Japan Real GDP (Q1) preliminary Y/Y - 3.7%