|
|
| 20.08 20:00 |
Hot Stocks: Hewlett-Packard Co., Suntech Pwr Hldgs Co Ltd
Тhe world's largest personal-computer maker Hewlett-Packard Co. posted a 14% jump in third-quarter profit results that topped Wall Street's estimates.
RBC Capital Markets raised its outlook on the Canadian gold company Yamana Gold Inc. to "Outperform" from "Sector Perform" citing a positive outlook for gold.
The world's third-largest maker of solar-power cells Suntech Pwr Hldgs Co Ltd said second-quarter profit rose 58 %, exceeding estimates, on rising selling prices.
The maker of semiconductors for companies Analog Devices Inc reported third-quarter profit and sales that fell short of analysts' estimates.
|
| 20.08 19:42 |
Dow -5.38 at 11344.23, Nasdaq -9.87 at 2374.36, S&P -1.62 at 1265.10 |
| 20.08 19:25 |
Crude oil up $0.47 now at $115.70 |
| 20.08 19:04 |
EUR/JPY: Still holds a heavy tone
Still holds a heavy tone, reflects euro-dollar softness. Euro-yen below
here somewhat featureless, although the 1% MAE at Y161.50 is still
viable, having been only briefly pierced. Techs remind of Y160.89 tech
support, a 50% fibo retracement level of the bounce from Y151.82.
Cross last at Y161.50.
|
| 20.08 18:43 |
Dow +28.58 at 11375.50, Nasdaq +2.75 at 2386.78, S&P +2.04 at 1268.73
The major indices continue to fluctuate near the unchanged mark as news
flow slows down. Crude oil futures recover much of their losses, now
down just 0.2% to $114.28 per barrel.
The S&P 500 is nearly split down the middle, with 249 stocks posting a gain. Hewlett-Packard (+2.33), Bank of America (+0.59) and Monsanto (+4.04) lead the way. General Electric (-0.30), Intel (-0.32) and Morgan Stanley (-1.37) are the main laggards.
|
| 20.08 18:23 |
American focus: Euro falls to near six-month low on German outlook, drop in oil [M]
The euro fell to near the lowest level against the
dollar in six months as Germany's economic outlook deteriorated and
crude oil prices declined.
The pound approached a two-year low versus the dollar as minutes of the
Bank of England's August meeting indicated British inflation risks may
have ``eased a little'' while the outlook for the economy worsened. The
dollar has risen 8 percent versus the euro from the record low set in
July.
The British pound dropped on the Bank of England's economic outlook.
BOE policy makers split three ways when they kept the target lending
rate unchanged earlier this month, minutes of the Aug. 7 meeting showed
today. Governor Mervyn King and six other members of the Monetary
Policy Committee held the benchmark at 5 percent, while one official
voted for a rate increase and another called for a cut to help sustain
growth.
Crude oil fell 0.5 percent to $113.95 a barrel, reversing an earlier
gain, after an U.S. Energy Department report showed a
bigger-than-forecast increase in U.S. inventories. .
``We are in a consolidation period,'' said Tyson Wright, a senior
currency trader in Victoria, British Columbia, at Custom House, a
currency brokerage with 50,000 corporate accounts. ``The sentiment is
still for a stronger U.S. dollar.''
The dollar briefly erased its gain versus the yen
after the Wall Street Journal reported that executives of
mortgage-finance company Freddie Mac are scheduled to meet with U.S.
Treasury Department officials today.
`Unsettling News'
The euro fell as Germany's Economy Ministry said in its monthly report that growth will remain moderate.
The country's BDB banking association said it no longer expects the
economy to expand between 2.25 percent and 2.50 percent this year, and
will lower its growth forecast on Sept. 18. German gross domestic
product shrank 0.5 percent in the second quarter, the first contraction
in four years.
|
| 20.08 18:05 |
Dow +10.18 at 11358.73, Nasdaq -1.14 at 2383.22, S&P +0.23 at 1266.92 |
| 20.08 17:34 |
Goldman Sachs about dollar rally
Economists at Goldman Sachs attribute half of the recent dollar rally
to narrowing rate differentials, and say the other half has likely been
driven by shifting positions and oil price declines.
|
| 20.08 17:01 |
Stocks stage advance [M]
Equities jump as oil prices erase losses and turn lower. HP's earnings news overshadows Fannie and Freddie fears.
Stocks turned higher near midday Wednesday as Hewlett-Packard's
earnings and a government report showing a surprisingly large surge in
crude supplies helped investors look beyond the latest financial market
woes.
Stocks had fallen in the first hour of trade as oil prices jumped and
Fannie Mae and Freddie Mac concerns overshadowed HP's earnings.
But the tone improved after the 10:30 a.m. ET release of the
government's weekly oil inventories. That report showed a
stronger-than-expected jump in crude inventories, sending oil prices
lower.
Hewlett-Packard reported higher quarterly sales and
earnings that topped forecasts late Tuesday. The company also forecast
that fiscal fourth-quarter earnings would top current expectations. HP
stock gained 5.4% Thursday morning.
Mortgage finance companies Fannie Mae and Freddie Mac slumped for a
third straight session on worries that a government takeover of the two
companies is unavoidable.
Additionally, Goldman Sachs cut third-quarter and full-year earnings
estimates on five brokerages, according to published reports, saying
that more writedowns are on the way.
The companies mentioned were Citigroup, JP Morgan Chase , Lehman Brothers, Merrill Lynch and Morgan Stanley.
U.S. light crude oil for September delivery fell 55
cents to $113.98 a barrel on the New York Mercantile Exchange, cutting
bigger gains after the weekly oil inventories report showed a surprise
jump in crude supplies.
In the bond market, Treasury prices rose, lowering
the yield on the benchmark 10-year note to 3.81% from 3.84% late
Tuesday. Prices and yields move in the opposite direction.
COMEX gold for October delivery rose $1.70 to $814.70 an ounce.
|
| 20.08 16:30 |
Dow +85.41 at 11436.61, Nasdaq +23.63 at 2408.68, S&P +8.51 at 1275.46
The stock market climbs to a session high in a mostly broad-based
fashion. Only the consumer staples sector (-0.3%) remains in negative
territory. Financials lead the recovery effort, now up 1.5% after being
down as much as 1.6%.
Energy stocks still provide leadership (+0.9%), but have slipped from session highs as crude prices give up gains.
|
| 20.08 16:14 |
EUR/USD:
Eases to $1.4705 area and is now within striking distance of the
overnight low at $1.4690 although flows remain muted at best, traders
say. Stops eyed under $1.4690.
|
| 20.08 16:02 |
CRUDE OIL:
WTI Nymex crude oil paring earlier gains following release of US
DoE weekly inventory data, which showed stronger than expected build in
crude oil supplies at 9.4mln barrels vs expectations of 1.0mln build.
WTI Nymex crude oil is at $114.70, down $0.50.
|
| 20.08 15:39 |
US: weekly gasoline stocks -6.2million to 196.6 million |
| 20.08 15:36 |
US: weekly crude oil stocks +9.4m barrels to 30.5.9m barrels. |
| 20.08 15:24 |
Dow -32.41 at 11314.76, Nasdaq +0.50 at 2384.79, S&P -2.72 at 1263.97 |
| 20.08 15:13 |
Barclays Capital on USD/CHF
Technical analysts at Barclays Capital say the "bearish divergence on intraday charts and a bearish Outside Range Day" suggest that dollar-Swiss may struggle to get over resistance at Chf1.1060, the 50% retrace of the Jun 07/March 08 decline. This is risk of a pullback to Chf1.0815 (channel support) before the bull trend exerts itself again, they say. "A break over Chf1.1060 would imply that the bull trend has resumed to Chf 1.1120/90, although we think this is unlikely in the near term," the analysts say.
|
| 20.08 14:49 |
Dow +4.88 at 11353.72, Nasdaq +9.42 at 2393.08, S&P +1.55 at 1266.24
The stock market gets off to a slightly higher start, with the
tech-heavy Nasdaq outperforming thanks to solid earnings from a
tech-giant.
Hewlett-Packard (HPQ 45.22, +1.53) reported quarterly earnings of
$0.83, which topped expectations by three cents thanks to 10.5%
year-over-year revenue growth. The Dow component also issued fiscal
fourth quarter earnings guidance that was above estimates.
Merrill Lynch (MER 23.66, -0.16), Lehman Brothers (LEH 12.82, -0.26),
Citigroup (C 17.15, -0.05), and JPMorgan Chase (JPM 35.44, -0.17) all
had their third quarter earnings estimates cut at Goldman Sachs,
according to Reuters. The financial sector is down 0.3%.
Crude oil prices are up 1.4% to $116.10 per barrel ahead of the
government's weekly energy report at 10:35 ET. Goldman Sachs
reiterated its forecast of $149 per barrel oil, according to CNBC.
|
| 20.08 14:30 |
USD/CAD under pressure after stronger than expected Canadian retail sales data
Drops back below C$1.0600, passing through earlier dip
lows around C$1.0595 to challenge reported support around C$1.0580, as
rate reacts to stronger than expected Canadian retail sales data. Rate
currently holds around C$1.0585. A break and clear below C$1.0580 to
open a move down toward C$1.0565, with bids noted from this level, and
dotted toward C$1.0545. The C$1.0600 level said to hold option expiry
interest for the 1400GMT cut and could act to keep rate in close
proximity.
|
| 20.08 13:55 |
Before the bell: Wall Street set to open higher
Futures point to a higher start, but have given up a good portion of
this morning's advance as oil prices climb 1.7% : (S&P futures vs
fair value: +3.0. Nasdaq futures vs fair value: +10.1. )
 
Still stock futures suggest a higher open following better-than-expected earnings from a tech giant. Hewlett-Packard
(HPQ) reported earnings of $0.86 per share for its latest quarter,
which topped Wall Street's forecast by three cents. HPQ is up 2.5% in
premarket trading, and is indirectly giving a boost to the tech-heavy
Nasdaq 100. The futures market's advance this morning comes even as
several financial firms get their earnings estimates cut at Goldman
Sachs, according to Reuters. Meanwhile, crude oil is up 0.9% to
$115.52 per barrel ahead of the government's weekly energy report at 14:35 GMT. Goldman Sachs reiterated its $149 per barrel crude oil price forecast, according to CNBC.
|
| 20.08 13:31 |
CANADA: June retail sales +0.5% m/m vs +0.3% May (+0.4)
- June retail sales ex-autos +1.4% m/m
|
| 20.08 13:00 |
GBP/USD tested session lows
The pare challenged demand at $1.8540, bid interest said to be
placed between $1.8540/30, with buys from this level able to lift rate
back to $1.8560. Below $1.8530 to open a deeper move toward $1.8510/00.
Offers now seen placed back at $1.8590/00.
|
| 20.08 12:42 |
EUR/USD remains under pressure
Rate dipped back to test demand on approach to $1.4700 (61.8% of
$1.4630/1.4800, making a brief show below ahead of the US open before
recovering to $1.4720. Bids $1.4675/70, stronger bids $1.4630, offers
$1.4780.
|
| 20.08 12:17 |
OPTIONS: Expiries of note for today's 1400GMT
USD/JPY Y110.00, Y109.75, Y109.60, Y109.45, Y110.20, Y110.40
EUR/JPY Y162.00, Y163.40, Y161.35
GBP/USD $1.8400
EUR/GBP stg0.7920, stg0.8000
USD/CAD C$1.0600
|
| 20.08 12:08 |
European focus: pound under pressure in the wake of the minutes of the Bank of England
The U.K.
pound fell against the dollar and euro as the minutes of the Bank of
England's last policy meeting showed policy makers judged inflation
risks ``have eased a little'' in the past month.

The currency traded near the lowest level in two years versus its U.S.
counterpart and fell for a third day against the euro as the minutes of
the Monetary Policy Committee showed seven policy makers, including
Governor Mervyn King, voted to keep borrowing costs unchanged on Aug.
7. Timothy Besley voted for an increase, while David Blanchflower
favored a reduction.
``It continues to tell the story that the data outlook is
deteriorating,'' said Jeremy Stretch, a senior strategist in London at
Rabobank International, the third largest Dutch bank. ``The prospect
for rate cuts are still there.'' The pound may hold at current levels
and trade at $1.86 in a month, Stretch predicted.
The U.K. currency dropped yesterday after policy maker Besley wrote in
the Sun newspaper that increases in food and energy prices will slow,
allowing inflation to ease toward the central bank's 2 percent ceiling
by the end of 2009.
The pound lost 3 percent against the dollar last week, its biggest
five-day drop since the period through July 1, 2005, as traders bet
falling house prices will exacerbate the economic slowdown. The central
bank kept its benchmark rate at 5 percent this month as policy makers
weighed the risk of accelerating inflation against the threat of a
recession.
|
| 20.08 11:41 |
European equity bourses are maintaining opening gains Wednesday
Bargain-hunting and sharp
rally in Chinese stocks overnight support markets. Mining and oil stocks are leading
gainers, boosted by recovery in commodity markets -- BHP Billiton and
Rio Tinto are sharply higher and outweighed weakness in Barclays Bank,
HSBC and Anglo American, which are trading ex-dividend. CAC-40 is up
39pts (+0.9%), Xetra-DAX is up 37pts (+0.59%) and FTSE-100 is up 57pts
(+1.07%).
|
| 20.08 11:22 |
USD/JPY techs:
Resistance 3: Y112.00
Resistance 2: Y110.70
Resistance 1: Y110.20
Current price: Y109.99
Support 1: Y109.60
Support 2: Y108.40
Support 3: Y107.20
Comments: Wednesday’s overnight USD/JPY again challenged channel support line
from Jul 16 at Y109.60, but failed to break under, spurring short-covering.
Below that support the losses may widen to last Wednesday’s lows on Y108.35/40
and then – to Y107.20 (Aug 01 lows). Resistance comes on Y110.20 (61.8% of Y110.70
- Y109.50 decline). Above there is a chance of testing Friday’s highs on Y110.70.
Key resistance is around Y112.00 (channel line from Mar 2008).
|
| 20.08 11:20 |
USD/CHF techs:
Resistance 3: Chf1.1180Resistance 2: Chf1.1080
Resistance 1: Chf1.1030
Current price: Chf1.0981
Support 1: Chf1.0880
Support 2: Chf1.0600
Support 3: Chf1.0720
Comments: Dollar remains under pressure Wednesday’s morning after yesterday’s US
data showed 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. In general, techs on dollar hasn’t changed. Support
is near session lows on Chf1.0880/90 with stronger – on Chf1.0800 (23.6% of Chf1.0030
- Chf1.1030 rise). Resistance is near yesterday’s highs on Chf1.1030 with a
break above will open the way to Chf1.1080/00. Neat band of resistance is around
Jan 07 high on Chf1.1180/90.
|
| 20.08 10:59 |
UK CBI Monthly Trends: Aug Total Orders -13 Vs -8 In July
--UK CBI: Aug Average Prices +31 Vs +34% In July
--UK CBI Aug Output Balance -13 Vs -7 In July
--Output Balance At Most Negative Since Dec 2001
|
| 20.08 10:58 |
GBP/USD techs:
Resistance 3: $1.8840
Resistance 2: $1.8780
Resistance 1: $1.8680
Current price: $1.8570
Support 1: $1.8570
Support 2: $1.8510
Support 3: $1.8300
Comments: Support is around $1.8570 with a break under
will target Friday’s lows on $1.8510/20 (also Oct 2006 lows). Stronger level is
near $1.8300 (38.2% of the rally from Jun 2001 lows at $1.3670 to Nov 2007
highs at $2.1160). Resistance comes on Tuesday’s high at $1.8680, above – on $1.8780
(last Thursday’s highs). Strong resistance may be mentioned around 23.6% Fibo
on $1.8840 (of the $1.9930 - $1.8510 move).
|
| 20.08 10:54 |
GERMANY ECOMIN: Sees no pick up in consumption in next months
Economy to lose steam in coming months
|
| 20.08 10:40 |
EUR/USD techs:
Resistance 3:$1.4950
Resistance 2: $1.4880
Resistance 1: $1.4800
Current price: $1.4711
Support 1: $1.4700
Support 2: $1.4630
Support 3: $1.4550
Comments: EUR/USD remains under pressure. Today in Asia rate tested channel resistance line from Aus 11 on $1.4790/00
and retreated. Above than level the rise may extend to $1.4860/80 and $1.4950
(23.6% of $1.6030 - $1.4630 decline). Interim support comes near $1.4700 with
stronger one – on Tuesday’s low at $1.4630. Below rate may dip down to channel support
line on $1.4550.
|
| 20.08 10:06 |
OPTIONS: Expiries of note for today's 1400GMT cut,
USD/JPY: Y110.00, Y109.75, Y109.60, Y109.45, Y110.20, Y110.40 EUR/JPY: Y162.00, Y163.40, Y161.35 GBP/USD: $1.8400 EUR/GBP: stg0.7920
|
| 20.08 09:57 |
Orders:
EUR
Bids: $1.4700
Offers: $1.4775/85, $1.4800/10
JPY
Bids: Y109.40, Y109.10/00
Offers: Y110.30, Y110.50/55
GBP
Bids: $1.8600/90
Offers: $1.8640, $1.8685/00
AUSSIE
Bids: $0.8700, $0.8640/30
Offers: $0.8750/55, $0.8795/00
|
| 20.08 09:39 |
BOE MINUTES: Only MPC Besley Voted For Hike In August
Minutes showed that 7 members of the
MPC voted to keep rates unch in Aug with 1 voted to cut. The minutes revealed
arch hawk Tim Besley and arch dove David Blanchflower remained isolated at the
August meeting. The minutes were bang in line with analysts' expectations.
|
| 20.08 09:34 |
UK: Jul PSNCR -Stg12.637bn |
| 20.08 09:31 |
BOE: BoE MPC vote 7:1:1 to leave rates unchanged at August meeting |
| 20.08 09:20 |
Markets expect a 7:1:1 outcome of the August Bank of England MPC meeting |
| 20.08 09:14 |
Asian session: Yen falls as China stock gains boost confidence in carry trades [M]
The yen fell against the dollar and
euro as gains in Chinese stocks encouraged investors to buy higher-yielding
assets funded in the Japanese currency. The yen also declined against the
Australian and New Zealand
dollars, favorites of so-called carry trades. The British pound traded near a
two-year low on speculation minutes of the Bank of England's last meeting,
released today, will signal policy makers expect inflation to slow. JPMorgan
Chase & Co., the third-largest U.S. bank, predicts the Bank of England will
lower its benchmark 5% interest rate as early as November, a change from its
previous estimate of February 2009. The Bank of England releases its minutes at
08:30 GMT. The yen
also weakened on speculation the Bank of Japan will keep interest rates at the
lowest level among industrial nations over the coming year. The Bank of Japan
yesterday kept its target lending rate at 0.5%, supporting demand for carry
trades.
EUR/USD fell from $1.4790 to $1.4733.
GBP/USD weakens ahead of МРС minutes. Rate fell from $1.8684 to $1.8600.
USD/JPY rose from Y109.60 to Y110.10.
In Europe
attention will be on BoE’s MPC minutes (at 08:30 GMT). Last week BOE cut its growth
estimate and said that inflation would back under its target level of 2% next
two years. As a result, market players shed their BOE rate hike expectations. At 10:00 GMT UK CBI orders will be released. Analysts predict orders fell
12% in August after -8% month earlier.
|
| 20.08 09:05 |
Japan's stocks closed lower
Japanese
stock indices ended Wednesday's session modestly lower, bouncing back from
steep losses seen in early trade. The Nikkei was 13.36 points, or 0.10%, lower
at 12851.69. The broader-based TOPIX was down 2.17 points at 1233.37.
|
| 20.08 08:14 |
Stock market: Tuesday summary
Stock market fixing: Nikkei
-300.40 -2.28% 12,865.05
Topix -28.21 -2.20% 1,235.54
FTSE -129.80 -2.38%
5,320.40
DAX -150.45 -2.34% 6,282.43
CAC -116.05 -2.61%
4,332.79
Dow -130.84 -1.14%
11,348.55
NASDAQ -32.62 -1.35%
2,384.36
S&P -11.91 -0.93%
1,266.69
10yr Note +0.2600 +0.068%
3.842%
NYMEX Crude Oil +1.66
+1.47% 114.53
Gold +11.10 +1.38% 816.80
Japan's stocks fell, sending the
Topix index to a four-month low, on renewed concern credit losses will dent
profits at financial companies and as the Bank of Japan cut its assessment on the
economy.
Sompo Japan
Insurance Inc. sank the most in a week after Barron's said the U.S.
government is preparing to rescue mortgage lenders Fannie Mae and Freddie Mac.
Seven & I Holdings Co., the nation's biggest retailer, lost 2.1 percent and
Nintendo Co. fell to a five-month low as the central bank described the economy
as ``sluggish.''
Nintendo, maker of the Wii game machine, slumped 3.3%, the lowest since March
17, while digital-camera maker Canon Inc. dropped 3.8%. Bridgestone Corp., the
world's largest tiremaker, tumbled 4.2%, the most since June 19.
The Bank of Japan today kept its benchmark interest rate at 0.5%, saying
economic growth has been sluggish owing to rising costs and weakening exports.
Before the announcement, Nomura Securities Co. cut its forecast for domestic
growth this year to 0.7% from its May estimate of 1.1%.
European stocks declined for a second day as concern deepened that financial
firms will post more losses and reports signaled faster-than-forecast
inflation.
Barclays Plc slipped 5.4% and Societe Generale SA slumped 4.2% after JPMorgan
Chase & Co. said Lehman Brothers Holdings Inc. may write down about $4
billion in credit- related investments this quarter as the mortgage market
deteriorates. Ciba Holding AG tumbled 17% after posting a loss on a writedown
and higher raw-material prices. Wienerberger AG led construction companies
lower, sinking 6.1%, after cutting its profit outlook following the U.S.
homebuilding slump.
Lehman will probably post losses in the third quarter following the
deterioration in the mortgage market, New
York- based JPMorgan analysts Kenneth Worthington and
Funda Akarsu wrote in a report to investors dated yesterday.
The analysts lowered their per-share estimate for the third quarter to a loss
of $3.30 from a profit of 35 cents previously. Lehman will likely keep the
Neuberger Berman LLC asset-management unit, the analysts added.
Stocks fell Tuesday as deepening worries about the
financial sector and housing market balanced a further drop in oil prices.
  
Investors focused 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.
|
| 20.08 08:04 |
FOREX. Tuesday summary
The dollar briefly strengthened
versus the euro after the U.S. Labor Department reported that producer prices
climbed 1.2% in July after increasing 1.8% 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. 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 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 yen increased to a three-month high against the euro on speculation
financial firms will report more losses, reducing demand for higher-yielding
assets funded by loans in Japan.

EUR/USD printed lows at $1.4630. The rate had
recovered to trade around $1.4670 into the ZEW survey. Russian
demand was then noted into early US dealing as euro-dollar extended
the day's highs to $1.4708 and then – to $1.4795. GBP/USD recovered to $1.8595, only breaking back above
$1.8600 in late morning trade to $1.8638. Back down to $1.8570 was temporary
and rate then recovered to $1.8685. USD/JPY 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.
In Europe
attention will be on BoE’s MPC minutes (at 08:30 GMT). Last week BOE cut its growth
estimate and said that inflation would back under its target level of 2% next
two years. As a result, market players shed their BOE rate hike expectations. At 10:00 GMT UK CBI orders will be released. Analysts predict orders fell
12% in August after -8% month earlier.
|
| 20.08 07:47 |
USD/JPY techs:
Resistance 3: Y112.00 Resistance 2: Y110.70 Resistance 1: Y110.20 Current price: Y109.99 Support 1: Y109.60 Support 2: Y108.40 Support 3: Y107.20 Comments: Wednesday’s overnight USD/JPY again challenged channel support line from Jul 16 at Y109.60, but failed to break under, spurring short-covering. Below that support the losses may widen to last Wednesday’s lows on Y108.35/40 and then – to Y107.20 (Aug 01 lows). Resistance comes on Y110.20 (61.8% of Y110.70 - Y109.50 decline). Above there is a chance of testing Friday’s highs on Y110.70. Key resistance is around Y112.00 (channel line from Mar 2008).
|
| 20.08 07:26 |
USD/CHF techs:
Resistance 3: Chf1.1180 Resistance 2: Chf1.1080 Resistance 1: Chf1.1030 Current price: Chf1.0941 Support 1: Chf1.0880 Support 2: Chf1.0600 Support 3: Chf1.0720 Comments: Dollar remains under pressure Wednesday’s morning after yesterday’s US data showed 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. In general, techs on dollar hasn’t changed. Support is near session lows on Chf1.0880/90 with stronger – on Chf1.0800 (23.6% of Chf1.0030 - Chf1.1030 rise). Resistance is near yesterday’s highs on Chf1.1030 with a break above will open the way to Chf1.1080/00. Neat band of resistance is around Jan 07 high on Chf1.1180/90.
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| 20.08 07:16 |
GBP/USD techs:
Resistance 3: $1.8840 Resistance 2: $1.8780 Resistance 1: $1.8680 Current price: $1.8639 Support 1: $1.8620 Support 2: $1.8510 Support 3: $1.8300 Comments: Sterling consolidates ahead of BoE meeting minutes (06-07.08), due to release at 08:30 GMT. Last week BOE cut its growth estimate and said that inflation would back under its target level of 2% next two years. As a result, market players shed their BOE rate hike expectations. Support is around $1.8620 with a break under will target Friday’s lows on $1.8510/20 (also Oct 2006 lows). Stronger level is near $1.8300 (38.2% of the rally from Jun 2001 lows at $1.3670 to Nov 2007 highs at $2.1160). Resistance comes on Tuesday’s high at $1.8680, above – on $1.8780 (last Thursday’s highs). Strong resistance may be mentioned around 23.6% Fibo on $1.8840 (of the $1.9930 - $1.8510 move).
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| 20.08 06:58 |
EUR/USD techs:
Resistance 3:$1.4950 Resistance 2: $1.4880 Resistance 1: $1.4800 Current price: $1.4762 Support 1: $1.4700 Support 2: $1.4630 Support 3: $1.4550 Comments: EUR/USD weakened a bit overnight, but in general looks optimistic. Dollar’s decline amid the worries about the financial markets is the main driver now. Moreover, yesterday ZEW’s expectations index unexpectedly rose to -55.5 from minus -63.9 in July (the lowest since the survey began in 1991), easing the concerns about recession in Europe. Today in Asia rate tested channel resistance line from Aus 11 on $1.4790/00 and retreated. Above than level the rise may extend to $1.4860/80 and $1.4950 (23.6% of $1.6030 - $1.4630 decline). Interim support comes near $1.4700 with stronger one – on Tuesday’s low at $1.4630. Below rate may dip down to channel support line on $1.4550.
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| 20.08 06:44 |
Major European bourses are initially seen trading higher in Asian trade, following a late steadying of nerves in the US and an Asian rally: the FTSE up 15, the DAX up 12, the CAC up 18 and the Eurostoxx 50 up 6 |
| 20.08 06:31 |
Daily History for Aug 19, 2008
High Low Close EUR/USD 1.4794 1.4628 1.4781 USD/JPY 110.32 109.52 109.66 GBP/USD 1.8684 1.8535 1.8664 USD/CHF 1.1031 1.0894 1.0911
EUR/JPY 162.37 160.83 162.10 EUR/GBP 0.7921 0.7870 0.7915 GBP/JPY 205.37 203.87 204.73 GBP/CHF 2.0485 2.0348 2.0368
Change % Change Last Nikkei -300.40 -2.28% 12,865.05 Topix -28.21 -2.20% 1,235.54 FTSE -129.80 -2.38% 5,320.40 DAX -150.45 -2.34% 6,282.43 CAC -116.05 -2.61% 4,332.79 Dow -130.84 -1.14% 11,348.55 NASDAQ -32.62 -1.35% 2,384.36 S&P -11.91 -0.93% 1,266.69 10yr Note +0.2600 +0.068% 3.842% NYMEX Crude Oil +1.66 +1.47% 114.53 Gold +11.10 +1.38% 816.80
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| 20.08 06:07 |
Schedule for today, Wednesday, Aug 20, 2008
08:30 UK BoE meeting minutes (06-07.08) 08:30 UK M4 money supply (July) provisional - 1.8% 08:30 UK M4 money supply (July) provisional Y/Y - 11.4% 08:30 UK M4 lending (July) provisional, bln - +46.1 08:30 UK PSNCR (July), bln -10.0 +15.5 10:00 UK CBI industrial order books balance (August) -12% -8% 12:30 Canada Retail sales (June) - 0.4% 12:30 Canada Retail sales excluding auto (June) - 0.4% 23:50 Japan Trade balance (July) unadjusted, trln - 0.139
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