ACM - Asian Session Snap shot (29/06/09)

Asian Session: China and Brazil discuss bypassing the dollar for international trade – currency markets remain slow.

Snap-Shot

29 June 2009 - 11:25 CEST
G10 Advancers and Decliners vs USD GBP -0.075 NZD -0.177 JPY -0.338 SEK -0.363 CAD -0.406 EUR -0.525 DKK -0.5414 AUD -0.659 CHF -0.707 NOK -0.734 Global indexes Current level % Change Nikkei 225 Index 9783.47 - 0.95 Hang Seng Index 18548 - 0.28 Shanghai Index 2975.31 + 1.61 FTSE 100 Index 4252.82 + 0.28 DAX Index 4784 + 0.16 DJIA futures 8365 - 0.10 Nasdaq futures 1476 - 0.05 World markets Current level % Change Gold 939.83 + 0.02 Silver 14.035 - 0.36 VIX 25.93 - 1.63 Crude wti 68.92 - 0.35 USD Index 80.057 + 0.22 Todays calender Estimates Previous Country / GMT EUR Zone Industrial Confidence -32 -34 EUR / 09:00 USD Chicago Fed National Activity - - USD / 12:30 USD Dallas Fed Manufacturing Activity - - USD / 14:30 GBP Consumer confidence survey -25 -27 GBP / 23:01 JPY Nomura Manufacturing Purchasing Manager - 46.6 JPY / 23:15 JPY Job to applicant ratio 0.45 0.46 JPY / 23:30 JPY Household spending -1.5% -1.3% JPY / 23:30 JPY Jobless Rate 5.2% 5.0% JPY / 23:50	Currency Tech AUDUSD R 3: 0.8375 R 2: 0.8263 R 1: 0.8120 CURRENT: 0.8018 S 1: 0.7790 S 2: 0.7703 S 3: 0.7630 EURJPY R 3: 139.20 R 2: 138.33 R 1: 135.35 CURRENT: 133.75 S 1: 131.43 S 2: 129.70 S 3: 126.98 USDSGD R 3: 1.4800 R 2: 1.4748 R 1: 1.4649 CURRENT: 1.4557 S 1: 1.4515 S 2: 1.4425 S 3: 1.4385 Market Brief The BIS' annual general meeting this weekend saw the emergence of talks between China and Brazil on how to bypass the dollar for trade between the two countries. The premise for this agreement is to limit the importance of the U.S dollar as the dominant global reserve currency, one analyst saying the substantial debt the U.S had incurred during the crisis that originated on it's shores would be a "heavy burden on the dollar". As a consequence the long-term outlook by major financial institutions has shifted – strong dollar in the short/medium term but definite dollar weakness as we pull clear of these current economic woes. Initial talk along these lines spoke of the IMF's SDR replacing the dollar as a global reserve currency, now it seems the focus has shifted to limiting the dollars importance by favoring more direct swap methods. Japan industrial production numbers rose for the third straight month as inventory cuts late last year and earlier this year left a void as massive production cuts in the wake of the Lehman brothers meltdown left demand for Japanese products at an all-time low. While many see sentiment improving, the long hard road to recovery has only begun. With elections expected to take place in August further instability in the political system could stunt economic growth further. Commodities have traded higher in recent sessions as the dollar slides. Gold's rapid decline from it's June highs saw it bounce off the $900 support before losing momentum at around $950. As the global economy improves commodities will continue to soar as demand will push prices higher, this said – continued risk aversion could also be a driving force for commodities such as Gold and Silver. Crude is trading just below the $70 handle – ahead of U.S driving season.
Stratregy Desk +41 (22) 593 62 90 strategy@ac-markets.com Dealing Desk: +41 (22) 319 22 02 dealingdesk@ac-markets.com Sales Desk +41 (22) 593 22 03 sales@ac-markets.com
All ACM staff (except dealing desk staff) are at your disposal to reply from 09:00-19:00 CET only. The telephone dealing desk is reserved for ACM customers only
ACM Advanced Currency Markets SA (hereinafter referred as ACM) is a professional financial intermediary, directly regulated by the Swiss Federal Department of Finance, Anti Money Laundering Control Authority. As forex specialist, ACM provides only currency and precious metals trading via highly professional forex trading software. All customers are aware that this information or any part thereof has been prepared without taking account of your objectives, financial situation and/or needs. This information is not intended as personalized investment advice and does not constitute a recommendation. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. The analysis is based on the information which ACM finds reliable and accurate, but ACM does not assume any responsibility for any material nor for the transactions made on the basis of the information or the estimates of the analysis. ACM cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct, indirect and/or consequential loss arising from any use of this information, document or its content. All opinions and estimates constitute ACM analysis as of the data and are subject to change without notice. ACM does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions. Past performance is not a reliable indicator of future performance. unsubscribe