The maker of drugs for hospital use - Cadence Pharmaceuticals Inc - said it successfully completed two clinical trials for its Acetavance drug, an intravenous acetaminophen treatment for pain.

Walt Disney Company which reported a 9% jump in quarterly profit, sparking fears that U.S. economic woes will hit its results.

Bristol-Myers Squibb. Co. offered to buy the portion of ImClone Systems Inc it doesn't already own for $60 a share.

The world's second-biggest credit-card company Mastercard Inc posted a $746.7M loss on costs to settle an antitrust lawsuit with American Express Co.

Motorola, Inc posted an unexpected second-quarter profit on job cuts and sales above estimates.

The world's biggest maker of security software Symantec Corp said first-quarter profit almost doubled and gave a forecast above analysts' estimates on strong sales.

Exxon Mobil Corp reported a quarterly profit of $11.68B, the largest in U.S. history. Nonetheless, Exxon still fell short of analyst forecasts.

EUR/USD chopped down to $1.5575 area before sharply rebounded to $1.5590 area as US stocks take a turn for the worse. Earlier rate printed high on $1.5695, but failed to break above, spurring the retreat.

Stocks continue to trade with mixed results. There has been no clear leader this session. Gains are most noticeable in the healthcare sector (+0.9%), and telecom (+1.0%).
Energy (-2.5%) remains the worst performer.

"The rise in Chi-PM headline tp 50.8 was reflected in new orders, up to 53.5 from 52.0, and production, up to 49.2 from 45.1. Reason might be high export. Milwaukee index also
showed orders rebounding, so we now have to expect a small uptick in the national ISM report tomorrow."

The Dow and the S&P have pared losses, but continue to trade meaningfully lower. The Nasdaq remains an outperformer.
Providing leadership to the Nasdaq is Research In Motion (+5.10). RIMM has advanced almost 9% since Tuesday as buyers pick up the name ahead of the release of its new products.
Also making an ascent in recent sessions, shares of First Solar (+6.95) have found favor. The stock topped earnings per share and revenue estimates for its most recent quarter. The stock was also upgraded at several firms.

The dollar was little changed against the euro as reports showed the U.S. economy grew less than forecast in the second quarter and initial jobless claims rose last week to a five-year high.
The U.S. currency pared its loss versus the euro as crude oil prices fell, deepening the monthly decline to 11 percent. The pound dropped against the euro after reports showed British consumer confidence decreased this month to a record low and house prices fell the most in almost two decades.
``The economic backdrop is far less robust than people thought,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York.
Crude oil fell 1.4 percent to $124.96 a barrel on the New York Mercantile Exchange. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations based on their value changes. A reading of 1 would mean they moved in lockstep.
``Oil looks quite heavy, and commodities seem to be in a longer-term downward trend,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``It lent some support to the dollar.''
Some companies also bought the dollar at month-end to balance their books, according to Osborne.
Futures contracts on the Chicago Board of Trade showed a 32 percent chance of the Fed raising its 2 percent target rate for overnight loans between banks by at least a quarter-percentage point by Sept. 16, down from 38 percent odds yesterday. Most traders expect policy makers to keep borrowing costs unchanged when they next meet Aug. 5.
U.S. gross domestic product increased at an annual rate of 1.9 percent in the second quarter, the Commerce Department reported today. The median forecast of economists was for an advance of 2.3 percent. The report also showed a recession may have begun in the final three months of 2007, as GDP was revised to show a contraction in the period.
``The dollar's rally was built on a shaky foundation,'' said Stephen Malyon, co-head of currency strategy at Scotia Capital Inc. in Toronto. ``Today's numbers just highlighted there's more downside risk to growth.''
Non-farm payrolls dropped by 75,000 this month following a decline of 62,000 in June, according to the median forecast of economists. The Labor Department's report, which includes government hiring, is due tomorrow.
The euro strengthened earlier versus the dollar after the European Union statistics office reported that the euro zone's inflation rate rose to 4.1 percent this month, the highest since 1992. The European Central Bank raised its main refinancing rate to 4.25 percent on July 3, the highest since 2001.

Ian Shepherdson, Chief U.S. Economist at HFE, says of 448k jobless claims, "We have no doubt that the trend in claims is upwards but this number overdoes the gloom."

Economist Stephen Gallagher at SocGen says one of the biggest surprises in GDP "was a decline in Inventories. Final Sales--which exclude inventories-rose by 3.9% in Q2. The weak inventory position could be a support for growth in the second half."

GDP, Exxon disappointments and jump in jobless claims drag on the Dow and S&P, but Nasdaq gains.
Weak readings on the economy cast a cloud over stocks Thursday morning, although the tech-heavy Nasdaq got a boost from better-than-expected earnings from Motorola.
A government report that showed the economy grew at a slower-than-expected pace in the second quarter hit sentiment, as did a surge in initial jobless claims. Exxon Mobil, which reported sales and profit that fell short of forecasts, also dampened the mood.
The weak opening comes on the heels of a big two-day rally for stocks.
In the news on Thursday:
The economy grew at a faster pace in the second quarter than it did in the first quarter, but the pace of growth was not as fast as economists had forecast. The Commerce Department reported that GDP grew at an annual rate of 1.9% in the three months ended in June, up from a revised first-quarter growth rate of 0.9%. GDP for the fourth quarter of 2007 was revised lower, to a decline of 0.2%.
The Labor Department said initial filings for state jobless benefits rose to a five-year high. Jobless claims increased by a seasonally adjusted 44,000 to 448,000 in the week ended July 26, much higher than the 395,000 that was expected in a consensus estimate of economists .
Exxon Mobil: The world's largest publicly traded oil company reported the largest quarterly profit in history, but missed expectations. Exxon reported net income of $11.68 billion. Analysts were looking for a profit of $12.1 billion. Exxon reported revenue of $138 billion, which missed analyst expectations of $144.4 billion.
Crude oil futures fell 32 cents to $126.45 at barrel, after surging more than $4 on Wednesday. Oil prices have fallen sharply in recent weeks from a record high over $147 a barrel that was set earlier in the month. However, a government report released Wednesday showed that U.S. stockpiles of gasoline fell unexpectedly in the latest week.
Motorola announced modest profits for the second quarter, despite slumping handset sales. The tech giant posted earnings of 2 cents per share, excluding one-time charges, which was better than expected.
COMEX gold for December delivery rose $17.20 to $929.50.
Treasury prices rallied, sending the yield on the benchmark 10-year note lower to 3.96%. Bond prices and yields move in opposite directions.

"Much of the increase was likely due to the introduction of the Emergency Unemployment Compensation (EUC) program, which was recently signed into the law, suggesting that labor market conditions did not change markedly in late July. We believe the risks are balanced around our forecast for nonfarm payrolls of -60,000."

Economist Gary Bigg at BAS says after modest ECI, "We expect continued sluggish economic growth over 2008, with weak labor markets and a rising unemployment rate. This should put downward pressure on compensation gains despite persistent headline inflation."

The Nasdaq is outperforming the Dow Jones Industrial Average and the S&P 500. It currently trades with a healthy gain, while its counterparts remain in negative ground.
The Nasdaq is benefitting from strength in biotech and drug company ImClone Systems ( +17.79). ImClone has received an offer from Bristol-Myers Squibb (-0.31) to purchase the remaining shares of IMCL for $4.5 billion, or $60 per share. Bristol-Myers already owns a large piece of ImClone.
Separately, the Chicago Purchasing Manager's Index climbed to 50.8 in July from 49.6 in June, indicating moderate expansion. The report is indicative of business conditions in the Chicago area, but carries considerably less importance than the morning's previous economic data.

Economists at Nomura say the "startling" increase in jobless claims is aberrational "but other data also reveal further deterioration in the job market. For instance, the Monster employment
index fell in July to its lowest level in 30 months and the Conference Board's consumer survey showed a downgrade of the consumer assessment of job conditions."

Stock futures continue to indicate a markedly lower start (S&P futures -9.0, Nasdaq futures -14.8). Oil prices have erased their early losses and now trade with a slight gain. Exxon Mobil missed the consensus earnings per share forecast of $2.52 per share, generating just $2.27 per share during the second quarter.
The preliminary reading for second quarter GDP indicates the economy grew at an annualized rate of 1.9%, which is below the widely expected second quarter growth rate of 2.3%, but up from the downwardly revised 0.9% growth rate registered in the first quarter. Separately, initial jobless claims for the week ending July 26 totaled 448,000, which is above the 393,000 that was widely expected. The prior week's claims were revised slighly downward to 404,000.
Stocks are on track for a positive start following better-than-expected quarterly earnings per share results from Disney, Express Scripts, Visa, Murphy Oil, Aetna, Tyco, Altria and CBS Corp.

The euro rose against the dollar, snapping two days of losses, after data showed inflation in the region accelerated to the fastest pace in 16 years.
The euro also advanced versus the British pound on speculation rising consumer prices will increase pressure on the European Central Bank to raise interest rates a second time this year.

The pound dropped after a report showed U.K. consumer confidence slumped to a record low.

``Along with some reasonably hawkish rhetoric from ECB policy makers, we're going to see inflation moving further to the upside,'' said Jeremy Stretch, a senior strategist in London at Rabobank International, the third-largest Dutch bank. ``That might just lead the market to think that even with the downturn in economic data, the ECB might turn toward tighter monetary policy. That's providing a little support for the euro.''
The euro zone's consumer price index rose 4.1 percent in July, the biggest increase since April 1992, according to the European Union statistics office in Luxembourg.
``ECB officials remain hawkish even though the European economy is slowing,'' said Satoru Ogasawara, an economist at Credit Suisse Group in Tokyo. ``Provided economic figures continue to be not so bad, strong inflation figures will reignite expectations of a rate hike by the ECB.''
The euro has still fallen 0.9 percent versus the dollar this month amid speculation the Frankfurt-based ECB will hold off from raising interest rates as the risks from slowing economic growth outweigh those from accelerating inflation.
The U.S. dollar strengthened yesterday after ADP Employer Services reported that companies added 9,000 jobs in July after cutting a revised 77,000 positions in June. The report is a leading indicator of tomorrow's Labor Department employment data. Non-farm payrolls fell 75,000 this month following a drop of 62,000 in June, according to economists surveyed.
The U.S. payroll report, which includes government hiring, has shown a reduction in jobs each month this year, while ADP has recorded only two declines.
The Federal Reserve yesterday extended an emergency-lending program for Wall Street firms through January after policy makers judged markets are still too weak to operate without a backstop from the central bank.
``It suggests the market is still fragile and we're not out of the woods yet,'' said Benedikt Germanier, a currency strategist at UBS AG in Stamford, Connecticut. ``That means the Fed won't raise rates any time soon. I'm not buying the dollar.''
U.S. gross domestic product increased at an annual 2.3 percent rate in the second quarter after 1 percent growth in the first three months of the year, according to survey of economists before the Commerce Department releases the report at 8:30 a.m. in Washington.

EUR/USD opened in early Europe around $1.5570. Offers $1.5640, $1.5650/55, $1.5670, bids $1.5605/00, $1.5580/70

GBP/USD traded within $1.9780-$1.9830 range.

USD/JPY opened in early Europe around Y108.05. Offers Y108.30/35, stops above offers Y108.40/60, stops above.

At 12:30 GMT focus will be on GDP (Q2) advance Y/Y and PCE price index (Q2) advance. At 13:45 GMT is due Chicago PMI (July).

Economists at JPM say GDP will be revised back to 2005 tomorrow, raising the possibility that a recent quarter will show a decline. They expect the GDP deflator for 2Q08 will be soft, reflecting surging import prices.

The euro rose against the dollar, snapping two days of losses, after data showed inflation in the region accelerated to the fastest pace in 16 years.
The euro also advanced versus the British pound on speculation rising consumer prices will increase pressure on the European Central Bank to raise interest rates a second time this year. The pound dropped after a report showed U.K. consumer confidence slumped to a record low.
``Along with some reasonably hawkish rhetoric from ECB policy makers, we're going to see inflation moving further to the upside,'' said Jeremy Stretch, a senior strategist in London at Rabobank International, the third-largest Dutch bank. ``That might just lead the market to think that even with the downturn in economic data, the ECB might turn toward tighter monetary policy. That's providing a little support for the euro.''
The euro zone's consumer price index rose 4.1 percent in July, the biggest increase since April 1992, according to the European Union statistics office in Luxembourg.
``ECB officials remain hawkish even though the European economy is slowing,'' said Satoru Ogasawara, an economist at Credit Suisse Group in Tokyo. ``Provided economic figures continue to be not so bad, strong inflation figures will reignite expectations of a rate hike by the ECB.''
The euro has still fallen 0.9 percent versus the dollar this month amid speculation the Frankfurt-based ECB will hold off from raising interest rates as the risks from slowing economic growth outweigh those from accelerating inflation.
The U.S. dollar strengthened yesterday after ADP Employer Services reported that companies added 9,000 jobs in July after cutting a revised 77,000 positions in June. The report is a leading indicator of tomorrow's Labor Department employment data. Non-farm payrolls fell 75,000 this month following a drop of 62,000 in June, according to economists surveyed.
The U.S. payroll report, which includes government hiring, has shown a reduction in jobs each month this year, while ADP has recorded only two declines.
The Federal Reserve yesterday extended an emergency-lending program for Wall Street firms through January after policy makers judged markets are still too weak to operate without a backstop from the central bank.
``It suggests the market is still fragile and we're not out of the woods yet,'' said Benedikt Germanier, a currency strategist at UBS AG in Stamford, Connecticut. ``That means the Fed won't raise rates any time soon. I'm not buying the dollar.''

Offers in the Y169.00 area now under pressure as the cross continues to grind out fresh highs for the day. Short-term stops noted above, ahead of further supply at Y169.50/70.

Resistance 3: Y110.60
Resistance 2: Y109.60
Resistance 1: Y108.40
Current price: Y108.21
Support 1: Y107.70
Support 2: Y106.50
Support 3: Y106.00
Comments: Dollar broke out from the morning range and currently goes to strong resistance at yesterday’s highs on Y108.30, then – at Y109.60. Strong resistance comes near channel line on Y110.00/05. Support remains near yesterday’s lows on Y107.70. Below losses may widen to Y106.50 and Y106.00.

Resistance 3: Chf1.0610
Resistance 2: Chf1.0540
Resistance 1: Chf1.0520
Current price: Chf1.0466
Support 1: Chf1.0440
Support 2: Chf1.0380
Support 3: Chf1.0320
Comments: Dollar tested support at 38.2% Fibo level on Chf1.0440 (Chf1.0316 - Chf1.0520 move) and currently tries to rebound. Below correction may dip to key level on Chf1.0380 (channel support line from Jul 15) with a break under will open the way to Chf1.0320 (Jul 29 lows). Resistance is around yesterday’s highs on Chf1.0520. A bit higher there is stronger level on Chf1.0540 (upper bound of the upward channel from Jul 15). Break above will open the way to May highs on Chf1.0610.

Resistance 3: $2.0070
Resistance 2: $1.9980
Resistance 1: $1.9830
Current price: $1.9823
Support 1: $1.9740
Support 2: $1.9650
Support 3: $1.9580
Comments: Pound challenges minor resistance near 38.2% Fibo level on $1.9830. Stronger level is near channel line from Jul 15 on $1.9980. Break above will open the way to Jul 07 highs on $2.0070. Strong support comes at channel line from Jul 15 on $1.9740. Further target comes at Jul 22 lows on $1.9650. Key support is around trend line from Apr 2006 on $1.9580.

Resistance 3:$1.5810
Resistance 2: $1.5750
Resistance 1: $1.5640
Current price: $1.5610
Support 1: $1.5520
Support 2: $1.5460
Support 3: $1.5300
Comments: Euro refreshed session highs around $1.5610/20, where minor resistance now lie. Above there is a room for a rise up to Tuesday’s high on $1.5750. Stronger level comes at channel line from Jul 15 on $1.5810. Strong support zone remains between $1.5520/40 (channel line from Jul 15 and trend line from Dec08 2007 pass here). Break down will accelerate the decline to $1.5460 and then – to Jun lows around $1.5300.

EU/USD: $1.5680, $1.5775
USD/JPY: Y108.20, Y108.00, Y107.10, Y107.05
EUR/JPY: Y167.00
GBP/USD: $1.9750, $1.9940
AUS/USD: $0.9500
Kiwi: $0.7350, $0.7485

EUR
Bids: $1.5570, $1.5550, $1.5520/10
Offers: $1.5645/55

JPY
Bids: Y107.70, Y107.30
Offers: Y108.30, Y108.60

GBP
Bids: $1.9780, $1.9760, $1.9745

Offers: $1.9845/55, $1.9870

AUSSIE
Bids: $0.9400, $0.9330
Offers: $0.9500

The euro rose against the dollar, snapping two days of losses, before data that may show regional inflation accelerated to a 16-year high.
The euro also advanced versus the British pound on speculation the consumer price data will increase pressure on the European Central Bank to raise interest rates.
“ECB officials remain hawkish even though the European economy is slowing,” said Satoru Ogasawara, an economist at Credit Suisse Group in Tokyo. “Provided economic figures continue to be not so bad, strong inflation figures will reignite expectations of a rate hike by the ECB.”

EUR/USD traded around $1.5570/90 before rising to $1.5735.

GBP/USD fell to the lows around $1.9780 after the weak Nationwide house prices report. But the rate managed to rebound to $1.9835.

USD/JPY held within the Y107.90/00 parameters before sliding to the lows near Y107.75. Currently dollar recovers.

The euro zone's consumer price index rose 4.1% in July, the biggest increase since April 1992, according to a survey. The figures are due at 09:00 GMT today.
The ECB, which aims to keep inflation just below 2%, raised its benchmark rate to 4.25% on July 3, the highest level since 2001. ECB council member Klaus Liebscher said on July 24 the bank has room to raise rates again even as economic growth falters.
Main focus for today will be on US data, including the preliminary reading of 2Q GDP with a forecast of rising by 2.2% y/y after 1.0% y/y quarter before. Also PCE price index (Q2) and Chicago PMI (July) are due to come.

Japanese benchmark stock indices ended Thursday's session higher across the board, reversing weakness seen at mid-session. The benchmark Nikkei 225 was ahead by 9.02 points, or 0.07%, at 13376.81. The broader-based TOPIX was ahead by 0.63 points at 1303.62.

Stock market fixing:
Nikkei 225 +208.34 +1.6% 13 367.79
Topix +21.35 +1.7% 1 302.99
DAX 30 +61.32 +0.96% 6,460.12
САС 40 +80.06 +1.85% 4,400.55
FTSE 100 -40.00 -0.75% 5,312.60
Dow +186.13 +1.63% 11,583.69
Nasdaq +10.10 +0.44% 2,329.72
S&P +21.06 +1.67% 1,284.26
10YR +0.0400 +0.010% 4.048%
NYMEX Crude Oil +4.58 +3.75% 126.77
Gold -14.10 -1.52% 912.30

Japanese stocks rose the most in a week after Matsushita Electric Industrial Co. beat profit estimates and oil dropped to a 12-week low, cutting costs for manufacturers.
Matsushita, the maker of Panasonic-brand products, soared the most in three months after first-quarter earnings surged on television sales. Matsushita surged 5.5%, the most since April 30. The company said yesterday net income rose 86% to 73 billion yen ($679 million) in the three months ended June 30, beating the median estimate of analysts.
Nidec Corp., the world's biggest maker of motors for computer hard-disk drives, posted its biggest gain in a year as profit rose more than a third. Nidec rallied 9.9%, the sharpest jump since July 2007, after posting a 36% gain in first-quarter profit as sales rose.
Bridgestone Corp., the world's largest tiremaker by sales, advanced as oil retreated. Bridgestone advanced 2.2%.
Meanwhile, Sony Corp., the maker of the PlayStation 3 game console, lost 2.9% after lowering its net income forecast by 17% as the earnings outlook weakens for its handset, television and camera divisions.

European stocks rose the most in a week after Siemens AG, ArcelorMittal and Deutsche Postbank AG reported better-than-estimated earnings.
Siemens, Europe's largest engineering company, had its steepest advance in four months after orders for power plants and generator upgrades boosted profit. Siemens jumped 5.8% as net income through June 30 was 1.37 billion euros ($2.1 billion), topping the 967 million-euro profit predicted by analysts.
ArcelorMittal jumped the most since January as earnings at the world's biggest steelmaker more than doubled. The shares added 8.2%.
Deutsche Postbank, Germany's largest consumer bank by clients, gained after income from lending topped analysts' projections.
ThyssenKrupp gained 7.8%. Merrill Lynch lifted its recommendation on the shares to ``buy'' from ``neutral,'' saying Germany's largest steelmaker may raise its full-year earnings forecast.
In Europe, confidence in the outlook for the economy fell the most since the Sept. 11, 2001, terrorist attacks. An index measuring sentiment in the euro area slipped to 89.5 in July, more than economists forecast, the European Commission in Brussels said. A separate report showed retail sales declined.

Dow surges more than 150 points as stocks get an early boost from a surprise jobs report, a mortgage relief bill and an extension of the Fed's emergency loan program.

The U.S. private sector added a seasonally adjusted 9,000 jobs during the month of July, according to Wednesday's ADP employment report. That was unexpected; economists had forecast a 60,000-job decline. July marked a significant improvement over June's numbers, when the private sector shed a revised 77,000 jobs.
The ADP payrolls survey came two days ahead of the more closely watched employment report from the U.S. Labor Department, which is due out Friday.
After initially threatening to veto the bill, President Bush on Wednesday signed a sweeping measure to offer affordable government-backed mortgages to homeowners at risk of foreclosure. The law will also bolster government-sponsored mortgage finance giants Fannie Mae and Freddie Mac with a temporary rescue plan and stricter regulation. Congress approved the bill last week.
The Federal Reserve said Wednesday it is extending its emergency borrowing program to assist Wall Street banks with liquidity during the credit crisis. The plan was extended until Jan. 30. The U.S. central bank originally said the plan, which began in March, would end in mid-September.
GPS navigation device maker Garmin reported quarterly earnings Wednesday that rose 20%, but the company offered tepid guidance.

The dollar rose to a one-month high versus the euro after a private report showed U.S. companies unexpectedly added jobs. The U.S. dollar strengthened versus the euro as ADP Employer Services reported that companies added 9,000 jobs in July after cutting a revised 77,000 positions in the previous month. The median forecast of 29 economists was for a reduction of 60,000 jobs.
The Labor Department will probably report on Aug. 1 that non-farm payrolls dropped by 75,000 this month following a decline of 62,000 in June, according to the median forecast. The U.S. payroll report, which includes government hiring, has shown a reduction in jobs each month this year, while ADP has recorded only two declines.
The dollar pared its gain versus the euro after an Energy Department report showing an unexpected decline in gasoline inventories pushed oil prices higher.
Crude oil rose to $122.50 a barrel on the New York Mercantile Exchange.
The Federal Reserve extended its emergency lending programs to Wall Street firms through January after policy makers judged that markets are still too weak to operate without a backstop from the central bank.

EUR/USD fell to $1.5559, where losses were capped by bids ahead of $1.5550. Rate managed to recover to $1.5614 but then back off to $1.5580 and $1.5520. At the end of NY trading bids helped the euro to rebound to $1.5600.
GBP/USD declined to $1.9770 before rebounding to $1.9800 and later fell to session lows on $1.9840. Further pound recovered to $1.9780 and closed the day above $1.9800.
USD/JPY printed lows below Y108.00 – at Y107.70. Bids helped the dollar to lift up to Y108.20/30, where offers capped the rise. Later rate set stable between the Y108.00/20 zone.

At 09:00 GMTItaly and Eurozone will release their inflation reports.
Main focus for today will be on US data, including the preliminary reading of 2Q GDP with a forecast of rising by 2.2% y/y after 1.0% y/y quarter before. Also PCE price index (Q2) and Chicago PMI (July) are due to come.

Resistance 3: Y110.00
Resistance 2: Y109.60
Resistance 1: Y108.30
Current price: Y107.91
Support 1: Y107.70
Support 2: Y106.50
Support 3: Y106.00
Comments: Dollar resumes support mentioned near yesterday’s lows on Y107.70. Below losses may widen to Y106.50 and Y106.00. Strong resistance comes at yesterday’s highs on Y108.30, then – at Y109.60. Strong resistance comes near channel line on Y110.00/05.

Resistance 3: Chf1.0610
Resistance 2: Chf1.0540
Resistance 1: Chf1.0520
Current price: Chf1.0455
Support 1: Chf1.0440
Support 2: Chf1.0380
Support 3: Chf1.0320
Comments: Dollar is under pressure again with support comes at 38.2% Fibo level on Chf1.0440 (Chf1.0316 - Chf1.0520 move). Below correction may dip to key level on Chf1.0380 (channel support line from Jul 15) with a break under will open the way to Chf1.0320 (Jul 29 lows). Resistance is around yesterday’s highs on Chf1.0520. A bit higher there is stronger level on Chf1.0540 (upper bound of the upward channel from Jul 15). Break above will open the way to May highs on Chf1.0610.

Resistance 3: $2.0070
Resistance 2: $1.9980
Resistance 1: $1.9830
Current price: $1.9796
Support 1: $1.9740
Support 2: $1.9650
Support 3: $1.9580
Comments: Techs on pound hasn’t changed much, despite the weak Nationwide house price data. Strong support comes at channel line from Jul 15 on $1.9740. Further target comes at Jul 22 lows on $1.9650. Key support is around trend line from Apr 2006 on $1.9580. Minor resistance is mentioned near 38.2% Fibo level on $1.9830. Stronger level is near channel line from Jul 15 on $1.9980. Break above will open the way to Jul 07 highs on $2.0070.

Resistance 3:$1.5810
Resistance 2: $1.5750
Resistance 1: $1.5620
Current price: $1.5583
Support 1: $1.5520
Support 2: $1.5460
Support 3: $1.5300
Comments: Euro rangebound again after it failed to break under the strong support zone between $1.5520/40 (yesterday’s lows, channel line from Jul 15 and trend line from Dec08 2007 pass here). Break down will accelerate the decline to $1.5460 and then – to Jun lows around $1.5300. Minor resistance is near yesterday’s highs on $1.5610/20. Above there is a room for a rise up to Tuesday’s high on $1.5750. Stronger level comes at channel line from Jul 15 on
$1.5810.

High Low Close
EUR/USD 1.5616 1.5518 1.5576
USD/JPY 108.33 107.69 108.05
GBP/USD 1.9842 1.9743 1.9813
USD/CHF 1.0520 1.0438 1.0482

EUR/JPY 168.61 167.92 168.32
EUR/GBP 0.7877 0.7847 0.7859
GBP/JPY 214.37 213.23 214.11
GBP/CHF 2.0788 2.0670 2.0768

Change % Change Last
Nikkei 225 +208.34 +1.6% 13 367.79
Topix +21.35 +1.7% 1 302.99
DAX 30 +61.32 +0.96% 6,460.12
САС 40 +80.06 +1.85% 4,400.55
FTSE 100 -40.00 -0.75% 5,312.60
Dow +186.13 +1.63% 11,583.69
Nasdaq +10.10 +0.44% 2,329.72
S&P +21.06 +1.67% 1,284.26
10YR +0.0400 +0.010% 4.048%
NYMEX Crude Oil +4.58 +3.75% 126.77
Gold -14.10 -1.52% 912.30

05:00 Japan Housing starts (June) Y/Y - -6.5%
05:00 Japan Construction orders (June) Y/Y - -25.2%
06:00 UK Nationwide house price index (July) -1.1% -0.9%
06:00 UK Nationwide house price index (July) Y/Y -7.3% -6.3%
06:00 Germany Wholesale sales (July) real adjusted - -0.9%
06:00 Germany Wholesale sales (July) real adjusted Y/Y - -0.8%
07:55 Germany Unemployment (July) seasonally adjusted -16K -38K
07:55 Germany Unemployment (July) seasonally adjusted, mln - 3.266
07:55 Germany Unemployment rate (July) seasonally adjusted 7.8% 7.8%
07:55 Germany Unemployment (July) seasonally unadjusted, mln - 3.159
07:55 Germany Unemployment rate (July) seasonally unadjusted - 7.5%
09:00 Italy CPI (July) preliminary - 0.4%
09:00 Italy CPI (July) preliminary Y/Y 4.0% 3.8%
09:00 Italy HICP (July) preliminary Y/Y - 4.0%
09:00 EU(15) Harmonized CPI (July) Y/Y preliminary 4.1% 4.0%
09:00 EU(15) Unemployment (June) 7.2% 7.2%
12:30 USA Jobless claims (week to 26.07) 382K 406K
12:30 USA GDP (Q2) advance Y/Y 2.2% 1.0%
12:30 USA PCE price index (Q2) advance - 3.6%
12:30 USA PCE price index ex food, energy (Q2) advance - 2.3%
12:30 USA Employment cost index (Q2) 0.7% 0.7%
13:45 USA Chicago PMI (July) 49.7 49.6
20:30 USA M2 money supply (21.07), bln - +0.3