Printed fresh highs for the session near $1.8680 area as a zone of offers layered above $1.8670 gets eroded, cable tracking the euro-dollar rally in early afternoon but giving some concession to s firmer euro-sterling which also sits at its highs of the day. Decent volumes seen in the dollar sell-off, a trader says. Further offers seen at $1.8720 but some light chatter of stops atop $1.8700 also.

The stock market continues to pare some losses, although the bulls still have a lot of work to do. The S&P 500 is currently down 0.7%, compared to its recent session low when it was down 1.2%. Oil prices give up some more of their gains, now up only 0.8% at $113.78 per barrel.
Overseas markets had a tough session. London's FTSE fell 2.4% and Japan's Nikkei declined 2.3%.

Sep contract trading at $113.79, up less than $1 now vs $3+ gains earlier.

The major indices pare some losses, although they continue to post steep declines. Crude prices climbed to a gain of 3.4% and then eased to their current level of a gain of 1.9% at $115.11 per barrel.
The materials sector (+0.6%) climbs into positive territory as gold (+1.5%) and commodities (+1.7%) in general make some gains.

The dollar briefly strengthened versus the euro after the U.S. Labor Department reported that producer prices climbed 1.2 percent in July after increasing 1.8 percent the previous month before fell on continued worries about the financial markets and reports showing a big drop in homebuilding, big rise in wholesale inflation.

Housing and inflation: Both housing starts and building permits - a measure of builder confidence - fell to levels in July not seen since the 1991 recession as the housing market fallout continued.
The Producer Price Index (PPI), a measure of inflation at the wholesale level, rose 1.2% in July, double what economists surveyed by Briefing.com were expecting. So-called "core" PPI, which strips out volatile food and energy prices, rose by 0.7%, more than three times what economists expected.
``The market is seizing on any data that suggest interest rates need to go higher,'' said Stephen Malyon, co-head of currency strategy at Scotia Capital Inc. in Toronto. ``Our view is that inflation won't be a major problem in the medium term. Once the market gets a chance to reflect on that, it should be less dollar-bullish.''

Traders say current short-covering in crude oil futures is due to reports of fire near Eni Refinery in Taranto.

Fannie Mae and Freddie Mac shares managed to bounce back a bit Tuesday morning, but the broader banking sector was still under pressure. Lehman Brothers slid for a second session on speculation that it will report bigger writedowns this quarter than originally thought, with JP Morgan's forecast for about $4 billion. Separately, a report said that Lehman is looking to sell its investment management business.
A variety of financial stocks slumped, including Dow components AIG, American Express, Bank of America, Citigroup and JP Morgan Chase.
Housing and inflation: Both housing starts and building permits - a measure of builder confidence - fell to levels in July not seen since the 1991 recession as the housing market fallout continued.
The Producer Price Index (PPI), a measure of inflation at the wholesale level, rose 1.2% in July, double what economists surveyed by Briefing.com were expecting. So-called "core" PPI, which strips out volatile food and energy prices, rose by 0.7%, more than three times what economists expected.
Retail earnings: Home Depot reported a steep drop in quarterly profit that nonetheless topped expectations. The company reiterated its cautious full-year outlook for weaker sales and earnings that are still above forecasts.
Target reported weaker quarterly earnings that topped forecasts on stronger quarterly sales that were short of expectations.
In the bond market, Treasury prices were little changed, with the yield on the benchmark 10-year note at 3.81%.
COMEX gold for October delivery fell $9.90 to $791.90 an ounce.

Fisher says inflation could add to interest rate premia. FOMC in agreement on the need to be vigilant on inflation.

Says dollar rise help to fight inflation depends on how sustanaible the rise is.

Fisher says oil price rose in all currencies

The major indices are posting steep losses near session lows.Weakness is mostly broad-based with nine of the ten economic sectors posting a loss.The financial sector is down 2.9% and the consumer discretionary sector is down 1.6%. The energy sector rose 0.5%, despite a modest decline in crude oil prices.

Michael Gregory of BMO Capital Markets says the “11% decline in US housing starts in July reversed the double-digit surge in June and was the lowest level in more than 17 yrs”

EUR/USD: $1.4650, $1.4775
USD/JPY: Y110.00, Y109.60, Y109.00
EUR/JPY: Y163.30, Y163.80
AUS/USD: $0.8675, $0.8775

Stocks were poised for a tough start Tuesday as deepening worries about the financial sector and housing market balanced a further drop in oil prices.

Stocks sank Monday after renewed fears about mortgage finance giants Fannie Mae and Freddie Mac rattled investors.
Investors will focus on Fannie and Freddie after the shares of both firms sank to their lowest levels in nearly two decades Monday. The sharp drop, which raised credit jitters, was triggered by a report in Barron's that suggested a government takeover of the troubled companies is inevitable.
The spotlight is also on Lehman amid reports that the Wall Street firm may sell part of its investment-management business, which includes Neuberger Berman.
The Labor Department reported that the Producer Price Index rose 1.2% in July, after increasing 1.8% in June. Analysts had expected the index to increase only 0.6% in July. The so-called core PPI number, which excludes food and energy prices, rose by 0.7% - more than the 0.2% increase analysts had expected.
Starts plunged 11% to an annual rate of 965,000 from a revised 1.084 million pace in June, when the total was inflated by a jump in multi-family home starts. Economists had forecast starts would fall to a rate of 960,000. Permits, which are often seen as a sign of builders' confidence in the market, tumbled 17% to an annual rate of 937,000 from a revised 1.138 million in June. Economists had forecast that permits would come in at 959,000.
Corporate news: The world's largest home improvement retailer Home Depot reported a 24% drop in second-quarter profit. Home Depot said earnings fell to $1.2 billion, or 71 cents a share, in the second quarter, from $1.59 billion, or 81 cents a share, in the year-ago quarter.
Aircraft builder General Dynamics has entered an agreement with Jet Aviation to buy the smaller Swiss company for $2.25 billion in cash. The deal is expected to close by the end of 2008.

GBP/USD easing in line with euro-dollar after the break under $1.8600. Offers now seen placed between $1.8600/05, a break above to open a move on toward $1.8612/22 ahead of $1.8640/50. Bids $1.8570/60, more between $1.8540/30.

EUR/USD eased to $1.4650 area in the wake of the US data and as crude oil dips once again but euro remains above overnight low marked at $1.4630. Bids mentioned earlier at $1.4650/60 largely filled, further demand $1.4630.

The following data were issued
06:00GermanyPPI (July) 2.0% 0.7% 0.9%
06:00GermanyPPI (July) Y/Y 8.9% 7.5% 6.7%
09:00GermanyZEW economic expectations index (August) -55.5 -61.0 -63.9

The yen rose to a three-month high against the euro as declines in stocks and concern financial firms will post more losses damped demand for high-yielding currencies funded in Japan.
The yen also advanced versus the euro, New Zealand dollar and the British pound as Asian and European stocks tumbled after JPMorgan Chase & Co. analysts said Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, may post $4 billion of credit writedowns.
The euro traded near its weakest level in six months against the dollar as investors bet an unexpected increase in investor confidence in Germany, Europe's largest economy, will do little to avert an economic slowdown. ZEW’s expectations index rose to -55.5 from minus -63.9 in July, the lowest since the survey began in 1991. Economists expected a gain to minus -62.
The Bank of Japan cut its economic assessment for a second straight month at a monetary policy meeting today, acknowledging that threats to growth outweigh decade-high inflation as its chief concern.
RBS pushed back its forecast for a BOJ rate increase to the fourth quarter of 2009 from the second quarter.

EUR/USD opened around $1.4663 before fell to session lows at $1.4630. The rate had recovered to trade around $1.4670 into the ZEW survey. Russiandemand was then noted into early US dealing as euro-dollar extended the day's highs to $1.4708.Offers $1.4720, stops above, bids $1.4630, barrier $1.4600.

GBP/USD opened at $1.8582, stg0.7890. Cable recovered through the morning, edging to $1.8595, only breaking back above $1.8600 in late morning trade to $1.8638. Cable bids $1.8540/30, $1.8510/00. Offers $1.8640/50, $1.8670/80.

USD/JPY opened around Y110.09. With the greenback finding favour into early Europe, dollar-yen was able to push to highs for the day at Y110.32, though the rally was brief as the pair eased back under Y110.00.

Gains for the dollar may be limited before government reports forecast to show U.S. housing starts fell last month to the lowest level in 17 years and inflation slowed.
U.S. housing starts dropped to an annual rate of 960,000 in July, according to a survey. The Labor Department will report that the producer-price index climbed 0.6% in July after increasing 1.8% the previous month, according to a separate survey.

EUR/USD: $1.4650, $1.4775
USD/JPY: Y110.00, Y109.60, Y109.00
EUR/JPY: Y163.30, Y163.80
AUS/USD: $0.8675, $0.8775

EUR/USD corrects back to $1.4680, after printing high on $1.4708. Bids seen in place back at $1.4660/50, stronger toward earlier lows at $1.4630. Offers remain in place to $1.4710, a break above to open a move toward $1.4720 ahead of $1.4730/35.

Investors’ gloom over German economic prospects has lifted this month, with recession fears receding, according to a closely-watched survey.
The improvement in the Mannheim-based ZEW institute’s economic sentiment indicator – by 8.4 points in August to minus 55.5 points – added to evidence that Europe’s largest economy might be over the worst of the economic downturn. German gross domestic product had contracted by 0.5% in the three months to June, figures showed last week.
Meanwhile German producer price inflation accelerated to a 27-year high of 8.9% in July, with the latest rise driven higher by energy costs.
Optimism about Germany’s growth prospects may have been boosted in the past few weeks falls in the euro and in oil prices. Unlike the US, the UK and Spain, Germany has not seen house prices soaring in recent years – and so is at no risk of a property market collapse.
Still, a rapid rebound in Germany appears unlikely. Growth this year has been hit by the effects of higher energy costs in curbing consumer spending, and of deteriorating global economic conditions on German exports.
The next main focus for investors is the July report on U.S. building permits and housing starts at 1230 GMT for clues on whether the U.S. housing market -- widely considered to be at the root of the year-long global financial crisis and a major hurdle to a U.S. recovery -- is close to a bottom.

EUR/USD failed to break under support at $1.4650/60 and sharply rebounded. Currently rate challenges $1.4700 with offers extend to $1.4710.

1.Don't advise ECB to cut interest rates
2.If ECB interest rates change at all, then better up

Resistance 3: Y112.30
Resistance 2: Y111.80
Resistance 1: Y110.70
Current price: Y109.83
Support 1: Y109.50
Support 2: Y108.40
Support 3: Y107.20
Comments: Dollars retreats with strong support comes at Y109.50. Below correction may extend to last Wednesday’s low on Y108.40, then – to Y107.20 (Aug 01 lows). Resistance is around Friday’s highs on Y110.70, with a break above will point to key level on Y111.80 (channel line from Mar). Above the target comes at channel line from Jul 16 on Y112.30.

Resistance 3: Chf1.1180
Resistance 2: Chf1.1080
Resistance 1: Chf1.1030
Current price: Chf1.0983
Support 1: Chf1.0960
Support 2: Chf1.0830
Support 3: Chf1.0790
Comments: Dollar holds above trend resistance line from Mar on Chf1.0960 (support now) with strong resistance is around session high on Chf1.1030. Break under Chf1.0960 points to the next level on Chf1.0830, then around 23.6% on Chf1.0790 (Chf1.0030 - Chf1.1010 rise). Above Chf1.0030 the re is a chance to probe Chf1.1080/00. Next band of resistance comes on Jan 07 highs at Chf1.1180/90.

Resistance 3: $1.8840
Resistance 2: $1.8780
Resistance 1: $1.8660
Current price: $1.8578
Support 1: $1.8510
Support 2: $1.8440
Support 3: $1.8300
Comments: Cable falls with support is around Friday’s lows on $1.8510/20 (also Oct 2006 lows) with a break under will drag the cable down to $1.8440. Stronger level is around $1.8300 (38.2% of the rise from Jun 2001 lows at $1.3670 to Nov 2007 highs on $2.1160). Interim resistance is near session hgh on $1.8660, further - $1.8780. Further rise may extend to $1.8830/40 (23.6% of $1.9930 - $1.8510 decline).

Resistance 3:$1.4980
Resistance 2: $1.4830
Resistance 1: $1.4690
Current price: $1.4651
Support 1: $1.4630
Support 2: $1.4540
Support 3: $1.4440
Comments: Euro declines after weak ZEW business confidence. Earlier rate tested channel resistance line from Aug 08 between $1.4690/00. Strong support is around session lows on $1.4630 with a break under will drag the euro down to Feb lows on $1.4540 and $1.4440. Above $1.4690/00 there is a risk to rise up to $1.4830 and $1.4980 (23.6% of $1.6030 - $1.4650 decline).

EUR/USD falls after weak ZEW business confidence. Rate fell from $1.4690 to current $1.4650.

EUR/USD $1.4650, $1.4775
USD/JPY Y110.00, Y109.60, Y109.00
EUR/JPY Y163.30, Y163.80
AUD/USD $0.8675, $0.8775

EUR/USD:
Bids $1.4630, $1.4615/00 (stops $1.4590), $1.4569
Offers $1.4700

GBP/USD:
Bids $1.8510/00, $1.8480,$1.8450
Offers $1.8580, $1.8600/10, $1.8625/35

USD/CHF:
offers Chf1.1100/10
Bids Chf1.0965/60

EUR/GBP:
Offers stg0.7900, stg0.7910/15
Bids stg0.7875/70

- Slower global economy good for sustained growth;
- Japan economy likely to decline sharply;
- BOJ view on Japan economic mechanism unchanged;
- Japan economic recovery seems to be delayed.

Japan's benchmark stock indices ended the day lower across the board, although shy of session lows. The benchmark Nikkei 225 was down 300.40 points, or 2.28%, at 12865.05. The broader-based TOPIX wad down 28.21 points at 1235.54.

The euro fell to a six-month low against the dollar before a survey that may show investor confidence in Germany, Europe's largest economy, held near a record low.
``We expect a weaker figure than the market consensus,'' said Koji Fukaya, senior currency strategist at the Tokyo unit of Deutsche Bank AG, the world's largest currency trader. ``If that is the case, the euro will be sold further.''
The euro declined to a three-month low versus the yen on speculation a weakening economic outlook will discourage the European Central Bank from raising interest rates.
The ZEW Center for European Economic Research's index of investor and analyst expectations was minus 62 in August, according to the median of forecasts. That's near last month's minus 63.9, the lowest since the survey began in 1991. ZEW releases the report at 11 a.m. in Mannheim.
A government report last week showed the euro region economy contracted in the second quarter. Traders have reduced bets the ECB will raise interest rates a second time this year, with the implied yield on the December Euribor contract dropping 12 basis points in the past month to 5.04 percent.
The BOJ, which unanimously decided to keep rates unchanged today, cut its economic assessment for a second straight month at a monetary policy meeting, acknowledging that threats to growth outweigh decade-high inflation as its chief concern. The world's second-largest economy shrank last quarter, putting it on the brink of the first recession in six years.

EUR/USD fell from around $1.4700 to session low at $1.4628.
GBP/USD Opened in early Asia around $1.8650, easing to an early low of $1.8617 before edging back, trading to a high of $1.8660 before slipping back again.
USD/JPY consolidated over the remainder of the Asian day under Y110.00, early Europe then providing momentum for a push back above, with the rate making marginal highs on the day at time of writing just shy of Y110.30.

In Europe ZEW economic expectations index (August) will be the major event (at 09:00 GMT). At 12:30 GMT focus will be on US data - PPI (July). he Labor Department will report that the producer price index climbed 0.6 percent in July after increasing 1.8 percent the previous month, according to a separate survey.

Stock market fixing:
Nikkei 225 +146.04 +1.10% 13,165.45
Topix +16.44 +1.30% 1,263.75
FTSE -4.60 -0.08% 5,450.20
DAX -13.14 -0.20% 6,432.88
CAC -4.78 -0.11% 4,448.84
Dow -180.18 -1.55% 11,479.72
NASDAQ -35.54 -1.45% 2,416.98
S&P -19.56 -1.51% 1,278.64
10yr Note -0.3600 -0.093% 3.816%
NYMEX Crude Oil -0.90 -0.79% 112.87
Gold +13.60 +1.72% 805.70

Japan's stocks opened the week higher as concerns eased that tighter lending standards will drive developers to bankruptcy, and after analysts recommended manufacturer shares that have become cheap.
Japan General Estate Co. jumped the most in a year after rival developer Urban Corp.'s bankruptcy filing set off a 19 percent drop in two days. Komatsu Ltd., the world's second- largest earthmover maker, rose 3.8 percent after Nikko Citigroup Ltd. said its share price was a ``good investment opportunity.'' AOC Holdings Inc. surged 5.6 percent after oil prices slumped, boosting margins for the refiner.
he Nikkei 225 Stock Average climbed 146.04, or 1.1 percent, to close at 13,165.45 in Tokyo. The broader Topix index rose 16.44, or 1.3 percent, to 1,263.75, the sharpest jump since Aug. 11. Almost four stocks advanced for each that fell on the Topix. The Nikkei has risen 12 percent since it hit a more than two-year low on March 17. The gauge is still down 14 percent on the year.Komatsu climbed 3.8 percent to 2,445 yen, the sharpest jump since July 22. Nikko Citigroup analyst Yoshinao Ibara lifted it to ``buy'' from ``hold.'' The stock had fallen 31 percent through Aug. 15 from its June 4 high in 2008.
Sumitomo Metal Industries Co., Japan's third-biggest steelmaker, surged 7.4 percent, the most since August 2007, to 481 yen. Mitsubishi UFJ Securities boosted its rating on the stock to ``outperform'' from ``market perform,'' citing the company's plan to pass on cost increases on steel pipes. The company's shares had fallen 15 percent this month. Nippon Steel Corp., the world's second-biggest maker of the metal, added 2.9 percent to 538 yen.

European stocks fell for the first time in three days after the steepest decline in U.K. house prices since at least 2002 dragged down banks and consumer companies, overshadowing gains in commodity producers.
Barclays Plc fell 2 percent and Lloyds TSB Group Plc lost 1.9 percent after an industry group said the average asking price for a U.K. home fell 4.8 percent from a year earlier. Home Retail Group Plc, the owner of U.K. store chains Argos and Homebase, dropped 3.4 percent. Anglo American Plc rallied 2.1 percent on higher gold and silver prices. Total SA climbed 1.8 percent as the cheapest energy shares in at least a decade lured investors.
National benchmark indexes decreased in 11 of the 18 western European markets. France's CAC 40 and the U.K.'s FTSE 100 dropped 0.1 percent, while Germany's DAX lost 0.2 percent.
Trading in shares of FTSE 100 companies today fell to the lowest since May 12, while the number of shares changing hands on the DAX and the CAC 40 dropped to the lowest since May 26, according to Bloomberg data.
U.K. house prices posted the biggest annual decline in August since Rightmove Plc, Britain's most-used property Web site, began measuring home values six years ago. Prices dropped 2.3 percent in August, the most since December, Rightmove said.
Home Retail lost 3.4 percent to 247 pence. Persimmon Plc, the U.K.'s largest homebuilder by market value, sank 5.6 percent to 332 pence.
Adidas AG, the world's second-largest sporting-goods maker, declined 2.4 percent to 40.98 euros after HSBC Holdings Plc downgraded the shares to ``underweight'' from ``neutral,'' saying that the long-term consensus estimates for earnings over the next three years are ``too optimistic.''
Anglo American, the world's fourth-largest diversified mining company, jumped 2.1 percent to 2,791 pence. Rio Tinto Group, the world's third-biggest mining company, added 1.7 percent to 4,683 pence.
Gold advanced as much as 2.3 percent as the dollar declined against the euro, bolstering demand for the metal as an alternative investment. Silver gained as much as 4.1 percent.
BHP Billiton Ltd. added 0.5 percent to 1,537 pence. The world's largest mining company reported profit rose 30 percent in the second half and increased its full-year dividend by 49 percent to 70 cents a share.

U.S. stocks declined the most in more than a week, led by banking and real estate shares, as growing speculation the government will bail out Fannie Mae and Freddie Mac rattled the mortgage market.
Freddie Mac and Fannie Mae slumped to the lowest in almost two decades, losing more than 18 percent, after Barron's said shareholders of the biggest sources of U.S. home-loan financing would be wiped out by a Treasury rescue. Lennar Corp. and Ryland Group Inc. led a 5.5 percent drop by builders. Hershey Co. retreated the most since 2002 after the chocolate maker said price increases will curb growth. The market extended its decline after oil pared a loss of as much as 1.6 percent.
The S&P 500 has dropped 13 percent this year as the biggest U.S. housing slump since the Great Depression slowed consumer spending and spurred turmoil in mortgage markets that saddled banks with more than $500 billion of losses. The benchmark index for U.S. equities has rallied 5.2 percent from an almost three- year low on July 15.
Banks and brokerages in the S&P 500 staged their biggest one-day rally on July 16 after the government announced plans to shore up Fannie Mae and Freddie Mac's financing. The S&P 500 Financials Index gained 19 percent since the measures were disclosed through last week.
Stocks advanced on Aug. 15, sending the S&P 500 to a third weekly gain. MBIA Inc. and Ambac Financial Group Inc. climbed after the largest bond insurers had their credit ratings affirmed and a report showed unexpected growth in New York manufacturing.
Fannie Mae today lost $1.44, or 18 percent, to $6.47, the lowest price since September 1990, and Freddie Mac dropped $1.12, or 19 percent, to $4.73, a price last seen in January 1991. The S&P Supercomposite Homebuilding Index slumped as much as 5.4 percent. Lennar fell 92 cents, or 7.8 percent, to $10.90. Ryland retreated $1.73, or 8 percent, to $19.88. Financial shares in the S&P 500 slumped 3.4 percent, the most among 10 industries.

As on Monday hasn’t publications of the important fundamental data, the major currency pairs consolidated in narrow ranges.
The dollar fell from a seven-month high against the yen and declined versus currencies in New Zealand and Australia on speculation its recent rally is too fast to sustain.
The U.S. currency retreated from its strongest level in almost six months against the euro before housing and inflation reports that may add to speculation that the Federal Reserve will delay raising interest rates. The greenback has gained 8.4 percent versus the euro since touching the record low in July on evidence economies outside the U.S. are slowing.
The dollar will trade in a range of $1.45 to $1.50 in the next two weeks, Kassel said.
Futures on the Chicago Board of Trade show a 21 percent chance the U.S. central bank will increase the 2 percent target rate for overnight lending between banks by at least a quarter- percentage point by its Dec. 16 meeting, down from 47 percent odds a week earlier. Policy makers next meet Sept. 16.
U.S. housing starts dropped to an annual rate of 960,000 in July, the fewest in 17 years, according to the median forecast of 75 economists before the Commerce Department's report today.
The Labor Department will report tomorrow that the producer price index probably climbed 0.6 percent in July after increasing 1.8 percent the prior month, according to the median forecast of 75 economists.

EUR/USD printed highs around $1.4767, then to break above $1.4700 to session lows jn around $1.4670.

Resistance 3: Y112.30
Resistance 2: Y111.80
Resistance 1: Y110.70
Current price: Y110.00
Support 1: Y109.50
Support 2: Y108.40
Support 3: Y107.20
Comments: Nearest strong support comes at Y109.50. Below correction may extend to last Wednesday’s low on Y108.40, then – to Y107.20 (Aug 01 lows). Resistance is around Friday’s highs on Y110.70, with a break above will point to key level on Y111.80 (channel line from Mar). Above the target comes at channel line from Jul 16 on Y112.30.

Resistance 3: Chf1.1180
Resistance 2: Chf1.1080
Resistance 1: Chf1.1000
Current price: Chf1.1019
Support 1: Chf1.0960
Support 2: Chf1.0830
Support 3: Chf1.0770
Comments: The dollar tries to overcome strong resistance is around Friday’s high on Chf1.1000 with a break under will open the way to Chf1.1080/00. Above there the resistance comes on Jan 07 highs at Chf1.1180/90. Strong support is arounl on Chf1.0960. Next level is Chf1.0960, then around 23.6% on Chf1.0770 (Chf1.0030 - Chf1.1010 rise).

Resistance 3: $1.8840
Resistance 2: $1.8780
Resistance 1: $1.8720
Current price: $1.8540
Support 1: $1.8510
Support 2: $1.8370
Support 3: $1.8300
Comments: The cable fell to new a 22-month low versus the dollar. Nearest resistance is Monday’s highs on $1.8720. Further rise may extend to $1.8830/40 (23.6% of $1.9930 - $1.8510 decline). Above the target comes at $1.8840. Strong support comes on Friday’s lows $1.8510/20 (also Oct 2006 lows) a break under will drag the cable down to $1.8370. Stronger level is around $1.8300 (38.2% of the rise from Jun 2001 lows at $1.3670 to Nov 2007 highs on $2.1160).

Resistance 3:$1.4980
Resistance 2: $1.4830
Resistance 1: $1.4790
Current price: $1.4660
Support 1: $1.4650
Support 2: $1.4540
Support 3: $1.4440
Comments: Euro consolidated within 6-month lows versus dollar. Rate challenges channel resistance line from Aug 08 between $1.4760/70. Above there is a risk to rise up to $1.4830 and $1.4980 (23.6% of $1.6030 - $1.4650 decline). Strong support is around Friday’s lows with a break under will drag the euro down to Feb lows on $1.4540 and $1.4440.

- risk of deeper, more persistent slowdown increases without rate cut
- members judged that the current policy stance appropriate for now
- Scope to move to easier monetary policy stance increasing.

High Low Close
EUR/USD 1.4767 1.4670 1.4678
USD/JPY 110.47 109.93 110.15
GBP/USD 1.8722 1.8615 1.8619
USD/CHF 1.1004 1.0911 1.0982

EUR/JPY 162.63 161.61 161.69
EUR/GBP 0.7906 0.7868 0.7881
GBP/JPY 206.23 205.00 205.12
GBP/CHF 2.0529 2.0401 2.0449

Change % Change Last
Nikkei 225 +146.04 +1.10% 13,165.45
Topix +16.44 +1.30% 1,263.75
FTSE -4.60 -0.08% 5,450.20
DAX -13.14 -0.20% 6,432.88
CAC -4.78 -0.11% 4,448.84
Dow -180.18 -1.55% 11,479.72
NASDAQ -35.54 -1.45% 2,416.98
S&P -19.56 -1.51% 1,278.64
10yr Note -0.3600 -0.093% 3.816%
NYMEX Crude Oil -0.90 -0.79% 112.87
Gold +13.60 +1.72% 805.70

01:30 Australia RBA Meeting's Minutes
03:30 Japan BoJ Interest Rate Decision 0,50% 0,50%
06:00 Germany PPI (July) Y/Y 6,7% 7.5%
06:00 Germany PPI (July) 0.9% 0.7%
09:00 Germany ZEW economic expectations index (August) -61.0 -63.9
12:30 USA PPI excluding food and energy (July) Y/Y 3.0%
12:30 USA PPI excluding food and energy (July) 0.2% 0.2%
12:30 USA PPI (July) Y/Y 9.2%
12:30 USA PPI (July) 1.8% 0.6%
12:30 USA Building permits (July), mln 1,091
12:30 USA Housing starts (July), mln 1.066 0.950
12:30 Canada Wholesale Sales (MoM) (Jun) 1.6%
23:50 Japan All Industry Activity Index (MoM) (Jun) 0.4%