Forex Snapshots: Asian Session: GS Results Provides Spark
Jul 15, 2009 Make Money Online
Asian Session: GS Results Provides Spark
July 15, 2009 11:45 AM CEST
Market Brief
The better than expected Goldman Sachs second quarter earnings, released yesterday, have captured the markets imagination over a recovery in the banking sector and has provided continued support for the rally in risk appetite. In addition, better than expected Retail sales and PPI (gasoline prices were a major driver) helped fuel optimism. The EURUSD rallied above the 1.4000 (key resistance now stands at 1.4203 ), while the AUDUSD marches towards the 0.8000 psychological resistance. Equity markets are green across the board and US stock futures are pointing to a higher open. Even the Baltic Dry index seems to have troughed and is gaining momentum to the upside. Interestingly China’s reserves rose to $150bn to $2.13tn in the Q2, one of the fastest reserve accumulations ever recorded. Currently, the momentum in FX markets has eased slightly, as several more financial institutions are set to release this afternoon and expectations are now higher. In Japan, the BoJ concluded its two-day meeting, leaving the rate unchanged, as was universally expected. However, the BoJ did announce that they would extend its asset purchase program and adjusted its growth forecast lower to -3.4% and 1.0% in 2009 and 2010 respectively. We now doubt the market’s conviction of testing 90 levels and growing comfortable with the idea of significant JPY selling near term. A rash of economic data highlighted by the FOMC minutes (no major surprises expected) and corporate earnings will keep traders vigilant.
Currency Tech
AUDUSD
R 2: 0.8155
R 1: 0.8035
CURRENT: 0.7964
S 1: 0.7700
S 2: 0.7630
EURJPY
R 2: 134.80
R 1: 132.82
CURRENT: 131.26
S 1: 127.82
S 2: 126.98
USDCAD
R 2: 1.1665
R 1: 1.1515
CURRENT: 1.1331
S 1: 1.1270
S 2: 1.1090
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Tags: AUD, Economics, EUR, Forex, FX Market, JPY, Stock, Stock Market, US stock, USD
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