Expert Analysis of Today's Market

USD/JPY Rises While Markets Await Fed

Hans Nilsson 2007-08-06

Trading mixed versus key currencies on Monday, the dollar rose against the yen but lowered versus the euro. There was no important US economic data today. Markets await Tuesday’s Federal Reserve’s Federal Open Market Committee meeting. The Fed is expected to leave its key interest rate unchanged at 5.25%. Sterling fell to a 2 1/2-month low versus the euro as traders reduced bets on Bank of England interest-rate increases.

The yen declined against the dollar and euro as US stocks gained and investors returned to carry trades. The dollar rose versus the yen at 118.28 in NY trading at 2:36 pm. The USD/JPY is testing support at 118 and there is resistance at 120. The outlook for the pair depends on moves in the US equity market.

Financial and Economic News and Comments

US & Canada

No major economic data.

Europe

German June manufacturing orders unexpectedly rose the most since December 2004 on machine sales to Europe. The manufacturing orders jumped 4.6% in June after rising 3% in May, the Economy and Technology Ministry said.

UK’s manufacturing production reached the highest level since August 2001, led by car output. The manufacturing index rose to 103.3 in June from 103.1 in May, the Office for National Statistics said. Production rose for a fourth month and the 0.2% increase matched the forecasts.

Asia-Pacific

Japan’s leading economic indicators index jumped to 80 in June, the Cabinet Office said, the first time the LEI has been over 50 since October 2006. A reading above 50 indicates the Japanese economy is expanding.

FX Strategy Update

2008
January | February | March | April

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The commentaries, charts, and information provided on this website are not intended as trading advice. Please contact a registered trading advisor if you have any questions.

This report is intended solely for distribution to customers of Capital Market Services, L.L.C. Any information in this report is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Capital Market Services, L.L.C. with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. Capital Market Services, L.L.C. accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this report. No part of this report may be reproduced or distributed in any manner without the permission of Globicus International, Inc.