USD/CAD holds C$1.1143 area in current trade, about mid-range, the pair rebounding off morning lows marked within a pip or two of C$1.1100 where an option barrier strike is. Bids said positioned just below that level with the USD currently holding almost exactly in the middle of the day's C$1.1101/91 range.

USD/JPY holds Y95.25 area currently. US session highs were printed near Y95.30. Overnight high at Y95.50 solidly intact and has not been threatened in the US session but dollar supply expected there and into Y95.60 area ahead of stops.

AutoZone Inc’s third-quarter earnings were $174M, or $3.13 a share, compared with $159M, or $2.49 a share, in the year-earlier period. Sales rose to $1.66B from $1.52B.

Cree Inc raised its fiscal fourth-quarter outlook because of stronger-than-expected orders.

JP Morgan lowered Citrix Systems Inc’s rating on the enterprise software company to “neutral” from “overweight”.

General Motors Corp’s debt-for-equity exchange offer for more than $27B in public debt has expired, with the number of notes required under its loan agreement with the U.S. far below requirements.

Stocks have gone on a sudden retreat, taking the major indices to fresh session lows. The S&P 500 has found some support at the 900 level, though. Still, the downward move eats into the prior sessin's advance.

GBP/USD extended gains to $1.6085. Barrier strike at $1.6100 mentioned earlier, another behind there at $1.6150 and cable last at $1.6034.

The pound rose above $1.60 for the first time in almost seven months as speculation the worst of the financial crisis is over stoked demand for assets denominated in the British currency.
Sterling extended its gain from a 23-year low reached in January to 19 percent as the FTSE 350 Banks Index advanced.
A 19% drop in the pound versus the dollar in the past 12 months made it attractive to investors who think government stimulus packages will pull the global economy out of the recession. The pound climbed almost 2% since it broke through its 200-day moving average versus the dollar on May 20, a sign to investors who use charts to plot currency moves that sterling will extend its advance.
Against the euro, the pound gained 3.3% this month. It may appreciate to 85 pence per euro by year-end, according to Bank of America-Merrill Lynch.

NYMEX July light sweet crude oil futures hold up $1.23 at $63.68 per barrel after trading in a $$62.19 to $63.82 range. Technical analysts at CitiFX note the oil closed Tuesday (at $62.45) above its 200-day moving average, which was a "bullish outside day." The 200-day
stands at $61.90 today, the analysts say.

Stocks were mixed Wednesday as investors looked past a report that showed existing home sales rose in April to focus on signs that General Motors will not be able to avoid bankruptcy.

GBP/USD gained to $1.6075 area now as earlier noted stops are flushed atop $1.6055. Next barrier strike seen at $1.6100.

Morgan Stanley says FHFA index "is hard to take seriously at this point after the home price increases reported in January and February, and the 19% annual drop in home prices in the Case-Shiller index is undoubtedly much closer to the truth."

Thanks to leadership from large-cap tech issues, the technology sector has climbed to a 1.2% gain and moved into headplace as the best performing major sector in the S&P 500.
Though tech is the largest sector in the S&P 500 by market weight, it isn't providing much leadership to the broader market, which is currently chopping along the unchanged mark. However, the Nasdaq's heavy tilt toward tech is giving the index a healthy lead over the other headline indices for the second straight session.

HFE economist Ian Shepherdson says existing home sales are stuck in a range from about 4.5M to 4.7M. "Demand appears to have stabilized, but the NAR reckons about 45% of all transactions last month were of foreclosed homes. With inventory of privately-owned homes still huge and foreclosures rising, prices continue to fall."

Stocks are chopping along in negative territory during the first few minutes of trading. However, solid gains are being made by the energy sector, which is up 0.9% with help from a 1.1% rebound in crude oil prices. Crude is currently trading at $63.15 per barrel, down a bit from its overnight high of $63.45 per barrel, which marked a six-month high for the commodity. Energy is currently the only major sector to sport a gain. Materials stocks are seeing the stiffest selling pressure; the sector is down 1.0%.
The downturn among materials stocks comes as fertilizer and agricultural chemicals stocks drop 3.5% following downside guidance from Monsanto (MON 81.94, -3.31).

EUR/USD $1.3900, $1.4050, $1.3700
USD/JPY Y95.00, Y94.25, Y93.75, Y93.20
AUD/USD $0.7800, $0.7915

U.S. stocks appeared set for a mostly higher start Wednesday, as investors hoped to extend the previous session's gains.
U.S. stocks surged Tuesday, lifted by an upbeat reading on consumer confidence. The Dow climbed 2.4%, the S&P 500 added 2.6% and the Nasdaq surged 3.5%.

Recovery off lows around stg0.8695 seen faltering ahead of reported resistance between stg0.8720/25. Rate currently holds back around stg0.8710. Bids remain in place to stg0.8695 ahead of stronger area between stg0.8680/70. Above stg0.8725 to open a move toward stg0.8750.

The U.S. recession will probably end in the third quarter, a survey of business economists showed, even as rising joblessness indicates the recovery will be weaker than previously estimated. The world’s largest economy will begin to expand next quarter, according to 74 percent of economists in a National Association for Business Economics survey. Compared with NABE’s February poll, growth will be slower and unemployment will be higher in the second half of this year and through 2010. Government stimulus spending and Federal Reserve efforts to thaw credit markets are helping pull the economy out of the worst slump in half a century, the survey said. While housing is stabilizing, the economists predicted consumer spending will be restrained by a deteriorating labor market as job losses continue for the rest of the year. “There are emerging signs that the economy is stabilizing,” Chris Varvares, president of the group and of Macroeconomic Advisers LLC in St. Louis, said in a statement. Still, the recovery may be “considerably more moderate than those typically experienced following steep declines,” he said.
The Euro has dropped to support level at 1.3890 after having been rejected at 1.3985, and, although the pair remains above the mentioned support

EUR/USD: $1.3900(lge), $1.4050, $1.3700
USD/JPY: Y95.00, Y94.25, Y93.75, Y93.20
GBP/USD: $1.5750
AUD/USD: $0.7800, $0.7915

- US ICSC/Goldman Sachs Chain Store Sales +0.8% In May 23 Wk

EUR/USD
Offers: $1.3975/85, $1.4020/25,$1.4050
Bids: $1.3900

USD/JPY
Offers: Y95.58, Y96.00, Y96.20/25
Bids: Y94.50/40, Y94.00

The U.S. recession will probably end in the third quarter, a survey of business economists showed, even as rising joblessness indicates the recovery will be weaker than previously estimated. The world’s largest economy will begin to expand next quarter, according to 74 percent of economists in a National Association for Business Economics survey. Compared with NABE’s February poll, growth will be slower and unemployment will be higher in the second half of this year and through 2010. Government stimulus spending and Federal Reserve efforts to thaw credit markets are helping pull the economy out of the worst slump in half a century, the survey said. While housing is stabilizing, the economists predicted consumer spending will be restrained by a deteriorating labor market as job losses continue for the rest of the year.
“There are emerging signs that the economy is stabilizing,” Chris Varvares, president of the group and of Macroeconomic Advisers LLC in St. Louis, said in a statement. Still, the recovery may be “considerably more moderate than those typically experienced following steep declines,” he said.
The pound rose, surpassing $1.60 for the first time in almost seven months, as optimism the worst of the financial crisis is over stoked demand for assets denominated in the British currency.

Resistance 3:Y96.70
Resistance 2:Y96.00
Resistance 1:Y95.50
Current price: Y95.35
Support 1: Y95.20
Support 2: Y94.40
Support 3: Y93.80
COMMENTS: The pair slightly become stronger. Resistance is marked in the field of session high Y95.50. Overcoming of the given mark will open road to Y96.00 (38,2% FIBO of Y99,55-Y93,80 falling). Further growth to Y96.70 (peak of May 13 and 19, 50,0%) is not excluded. The nearest support - Y95,20 (earlier resistance). Below lows on Y94.40 are located. Stronger level remains Y93.80 (Friday's low).

Resistance 3:Chf1.1050
Resistance 2:Chf1.0970
Resistance 1:Chf1.0870
Current price: Chf 1.0856
Support 1:Chf1.0820
Support 2:Chf1.0750
Support 3:Chf1.0600
СOMMENTS: The pair continues to bargain in the field of former levels. The nearest resistance - Chf1.0870 (session high). Above is probable growth to Chf1,0970 (May 20 low) and further to Chf1.1050 (May 21 high). The nearest support there is level Chf1.0820. Below possible falling to Chf1.0750 (76,4 % FIBO of Chf1,0370-Chf1,1970 growth) and further to Chf1.0600.

Resistance 3:$1.6270
Resistance 2:$1.6200
Resistance 1:$1.6020
Current price: $1.6000
Support 1: $1.5980
Support 2: $1.5780
Support 3: $1.5720
COMMENTS: The sterling remains in the field of six-monthly high. Resistance is in the field of session high on $1.6020 (38.2% FIBO of $2.0150-$1.3480 falling). Above the purpose of growth becomes $1.6200 (high of Nove of the last year). Further growth to $1.6270 (МА13). Intermediate support in the field of asian's high on $1.5980. Below loss can increase to $1.5780.More important support can be named area $1.5720.

Resistance 3: $1.4160
Resistance 2: $1.4040
Resistance 1: $1.4000
Current price: $1.3961
Support 1: $1.3840
Support 2: $1.3740
Support 3: $1.3630
COMMENTS: The euro is consolidated. The nearest strong support is located on $1.3840 (area of May 20 high). Below correction of a rate can reach $1.3740 (50% FIBO of $1.3420-$ 1.4050 growth) and to stronger on $1.3630 (channel line of support since Apr 22). The nearest resistance is on $1.4000 (session high). Overcoming of this mark will open road to $1,4050 (a 5-month's high). Above growth is possible to $1.4160 (50,0% FIBO $1,6030-$ 1,2330 falling).

Oil gained over 1 percent on Tuesday, bolstered by the U.S. data and comments from OPEC kingpin Saudi Arabia that prices may continue to rise.
U.S. crude oil for July at $63.00 a barrel. London Brent crude fell 4 cents to $61.20.

Data:
00:30 AUS Westpac Leading Index (MoM) (Mar) 0.3%
03:00 NZ Business Confidence (May) 1.9

The yen fell against higher-yielding currencies as a rebound in U.S. consumer confidence drove Asian stocks higher, damping demand for safer assets.
Demand for the euro weakened before a German government report tomorrow that may show the jobless rate rose to 8.4 percent in May, the highest since November 2007, from 8.3 percent in April, according to a Bloomberg survey of economists.
ECB council member Liikanen said the bank shouldn’t set a floor for interest rates, putting himself at odds with recent comments from his other colleagues.
Demand for the yen weakened after the U.S. Conference Board said yesterday its index of U.S. consumer sentiment surged in May to 54.9, the highest level since September. An index of manufacturing in the central Atlantic region climbed to 4 this month, the Richmond Federal Reserve Bank reported.
Sales of existing houses, which account for more than 90 percent of the U.S. market, rose 2 percent last month to a 4.66 million annual rate, economists forecast before the National Association of Realtors’ report today.

EUR/USD the pair shown low in the field of $1,3920 then become stronger in area $1,3970

The Nikkei 225 Stock Average climbed 127.96, or 1.4 percent, to close at 9,438.77 in Tokyo. The broader Topix index added 9.08, or 1 percent, to 892.85.

The euro fell against the dollar on speculation last week’s gain by the most since March was too large to sustain, reducing the currency’s appeal.
The euro also slid versus the dollar as the Daily Telegraph quoted Jochen Sanio, president of the German regulator BaFin, as saying debt levels of banks will blow up “like a grenade” unless they participate in the government’s bad-bank plan.
German banks have 200 billion euros ($280 billion) of bad debt, Sanio said last week, according to the Telegraph. Write- offs may reach 816 billion euros, the newspaper reported, citing an internal memo from the regulator’s office. In an interview with Bloomberg News last week, Sanio said Germany is “more than able” to cope with the 200 billion euros of toxic assets that its banks still hold.
The Dollar Index, used by Intercontinental Exchange Inc. to track the greenback against the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, increased 0.1 percent to 80.137, paring an advance that pushed the trade-weighted measure as high as 80.780.
The Conference Board’s index of U.S. sentiment surged this month to 54.9, higher than forecast and the biggest gain since April 2003, the New York-based research group said today.
The dollar posted its biggest weekly decline against the euro in two months last week on speculation a deterioration of U.S. creditworthiness will make assets such as Treasuries less attractive to investors.

EUR/USD begun session slightly above a level $1.4000, the pair decreased in area $1,3850, however by the end of session returned the most part of the lost positions and finished the tenders on a mark $1,3988.

EUR/USD $1.3900, $1.4050, $1.3700
USD/JPY Y95.00, Y94.25, Y93.75, Y93.20
GBP/USD $1.5750
AUD/USD $0.7800, $0.7915

The Federal Reserve is likely to leave the federal funds rate in a 0% to 0.25% until next spring, then raise it to 1.25% by the end of 2010, in the view of forecasters surveyed by the National Association for Business Economics, which released the findings Wednesday.

Most Japanese stocks rose after the government raised its assessment of Japan’s economy for the first time in three years. Semiconductor shares slumped on concern falling demand will forestall a recovery in chip prices.Nitori Co., which operates discount furniture shops, and shoe retailer ABC-Mart Inc. both jumped 8.5 percent. Sumitomo Realty & Development Co. climbed 3.4 percent after Mitsubishi UFJ Financial Group Inc. raised the developer to “market perform.” NEC Electronics Corp., Japan’s fourth-largest chipmaker, lost 3.7 percent, while Tokyo Electron Ltd., the world’s No. 2 maker of chip equipment, slid 3.2 percent. “Until people become sure the global economy is indeed in the recovery phase, they’ll likely stay with domestic-oriented companies that have lagged behind cyclical shares recently,” said Hiroshi Sato, chief investment officer of fund-management company GCSAM Co. “With demand for electronics goods still stagnant, there is no recovery in sight yet for chip prices.”

European stocks rose for a second day, led by retailers, after U.S. consumer confidence jumped the most in six years, adding to speculation the worst of the economic slump may be over.Tesco Plc and Royal Ahold NV added more than 2 percent after the Conference Board’s sentiment gauge surged more than forecast. United Internet AG soared 11 percent after agreeing to buy Freenet AG’s digital subscriber-line business, adding about 700,000 customers. Danone SA dropped 5.1 percent after Europe’s biggest maker of baby food said it plans to raise 3 billion euros ($4.2 billion) in a rights offer.
Confidence among American consumers was projected to rise to 42.6, according to the median estimate in a Bloomberg News survey of 70 economists. The index averaged 57.95 last year. Another report today showed property values in 20 of the largest U.S. metropolitan areas slid 18.7 percent in March from a year earlier. Economists in a Bloomberg survey had predicted an 18.3 percent drop. Danone sank 5.1 percent to 37.58 euros. The planned rights offer will be its first in 22 years, according to Chief Financial Officer Pierre-Andre Terisse.
Porsche SE slipped as much as 4.9 percent to 41.61 euros before closing at 43.59 euros amid speculation the automaker is in danger of losing profits recorded from holding Volkswagen AG options. The automaker that’s struggling to combine with Volkswagen risks losing some of the 17.3 billion euros in profits recorded from holding VW options because it may not have the money to exercise them.

U.S. stocks rallied, sending benchmark indexes higher for the first time in five days, as the biggest jump in consumer confidence since 2003 spurred optimism the worst of the recession is over. Two-year Treasury notes were little changed after a record-tying $40 billion auction. JPMorgan Chase & Co., Home Depot Inc. and climbed at least 4 percent after the Conference Board’s index of sentiment surged to the highest since September. Apple Inc. gained 6.8 percent after being upgraded to “overweight” at Morgan Stanley, which said analysts are underestimating demand for iPhones. Exxon Mobil Corp. led an advance in energy shares as crude oil climbed to a six-month high.“Consumer confidence was materially better,” said David Sowerby, who helps oversee about $100 billion at Loomis Sayles & Co. in Bloomfield Hills, Michigan. “That allows the market to fight through an expected pause after a rally from March lows.”
Companies: Investors are waiting to hear more about the fate of General Motors (GM, Fortune 500) and Chrysler. Tuesday marks that last day that GM bondholders, who hold $27 billion in unsecured debt from the company, can accept an offer to swap $1,000 of the debt for 225 shares of the company. GM faces a June 1 deadline to produce a turnaround plan or file for what would be the largest industrial bankruptcy in the nation's history.The leadership of the United Auto Workers union met Tuesday to review the tentative agreement reached last week with GM on changes to its 2007 labor deal. A source familiar with the agreement told CNNMoney.com that the union-controlled trust fund will receive a 17.5% stake in GM as a result of the deal. Shares of GM rose 0.7%.Meanwhile, the federal judge in Chrysler LLC's Chapter 11 case could decide Wednesday whether the automaker can pull its best performing assets out of bankruptcy and sell them to a newly-formed incarnation of itself, called Chrysler Group. In other company news, shares of Apple (AAPL, Fortune 500) rose 6% after analysts at Morgan Stanley upgraded the iPhone maker's stock.
Oil for July delivery rose 68 cents to settle at $62.45 a barrel ahead of an OPEC meeting later this week. Traders expect the cartel to leave output unchanged at the meeting. Oil prices have settled above the $60 mark for four straight sessions and are now at a more than six-month high. In currency trading, the dollar was mixed against its major trading partners. The greenback rose against the euro but fell against the pound and the yen.
COMEX gold for June delivery fell $5.60 to settle at $953.30 an ounce. To top of page

Resistance 3:Y96.70
Resistance 2:Y96.00
Resistance 1:Y95.50
Current price: Y95.44
Support 1: Y95.20
Support 2: Y94.40
Support 3: Y93.80
COMMENTS: The pair slightly become stronger. Resistance is marked in the field of session high Y95.50. Overcoming of the given mark will open road to Y96.00 (38,2% FIBO of Y99,55-Y93,80 falling). Further growth to Y96.70 (peak of May 13 and 19, 50,0%) is not excluded. The nearest support - Y95,20 (earlier resistance). Below lows on Y94.40 are located. Stronger level remains Y93.80 (Friday's low).

Resistance 3:Chf1.1050
Resistance 2:Chf1.0970
Resistance 1:Chf1.0870
Current price: Chf 1.0866
Support 1:Chf1.0820
Support 2:Chf1.0750
Support 3:Chf1.0600
СOMMENTS: The pair continues to bargain in the field of former levels. The nearest resistance - Chf1.0870 (session high). Above is probable growth to Chf1,0970 (May 20 low) and further to Chf1.1050 (May 21 high). The nearest support there is level Chf1.0820. Below possible falling to Chf1.0750 (76,4 % FIBO of Chf1,0370-Chf1,1970 growth) and further to Chf1.0600.

Resistance 3:$1.6200
Resistance 2:$1.6020
Resistance 1:$1.5980
Current price: $1.5969
Support 1: $1.5780
Support 2: $1.5720
Support 3: $1.5600
COMMENTS: The sterling remains in the field of six-monthly high. Resistance is in the field of session high on $1.5980. Above the purpose of growth becomes $1.6020 (38.2% FIBO of $2.0150-$1.3480 falling). Further growth to $1.6200 (high of Nove of the last year) is possible. Intermediate support is in the field of a yesterday's low on $1.5780. Below loss can increase up to $1.5720. More important support can be named area $1.5600 (23.6% FIBO of $1.4440-$ 1.5950 growth).

Resistance 3: $1.4160
Resistance 2: $1.4040
Resistance 1: $1.4000
Current price: $1.3965
Support 1: $1.3840
Support 2: $1.3740
Support 3: $1.3630
COMMENTS: The euro is consolidated. The nearest strong support is located on $1.3840 (area of May 20 high). Below correction of a rate can reach $1.3740 (50% FIBO of $1.3420-$ 1.4050 growth) and to stronger on $1.3630 (channel line of support since Apr 22). The nearest resistance is on $1.4000 (session high). Overcoming of this mark will open road to $1,4050 (a 5-month's high). Above growth is possible to $1.4160 (50,0% FIBO $1,6030-$ 1,2330 falling).

High Low Close
EUR/USD 1.4022 1.3858 1.3988
GBP/USD 1.5968 1.5776 1.5928
USD/JPY 95.13 94.50 94.93
USD/CHF 1.0925 1.0811 1.0837

EUR/JPY 133.38 131.45 132.39
EUR/GBP 0.8808 0.8751 0.8779
GBP/JPY 151.57 149.56 151.22
GBP/CHF 1.7296 1.7213 1.7266

Change % Change Last
Nikkei -36.19 -0.39% 9,310.81
Topix +0.88 +0,1% 883,77
FTSE +46.43 +1.06% 4,411.72
CAC +33.93 +1.05% 3,270.09
Dax +67.15 +1.37% 4,985.60
Dow +196 +2.37% 8,474
NASDAQ +58 +3.45% 1,750
S&P 23 2.63% 910
NYMEX Crude Oil 0.78 1.27% 62.32
Gold -6 -0.58% 953

00:30 AUS Westpac Leading Index (MoM) (Mar) 0.3% -0.3% (-0.5%)
03:00 NZ Business Confidence (May) 1.9 -14.5
06:00 Germany Consumer Price Index (MoM) (May) 0.1% 0.0%
06:00 Germany Consumer Price Index (YoY) (May) 0.2% 0.7%
06:00 Germany HICP (May) preliminary Y/Y 0.2% 0.7%
08:30 UK BBA Mortgage Approvals 26.1K
11:00 USA MBA Mortgage Applications (May 22) 2.3%
14:00 USA Existing home sales (April), mln 4.65 4.57
14:00 USA Housing Price Index (MoM) (Mar) 0.2% 0.7%
23:50 Japan Retail sales (April) Y/Y -3.9%