China Calls for G8 USD Agenda // 07-02-2009
U.S. Dollar Trading (USD) was on the back foot as global equity markets continued to rally. News that China is looking for Global Reserve Currencies to be on the Agenda at the next G8 meeting added to the downside pressure. Data was mixed with ADP Private Unemployment falling -473K in June vs. -393K forecast. May Pending Home sales at 0.1% vs. 0.0% forecast. June ISM Manufacturing climbed to 44.8 vs. 42.8 previously. Crude Oil closes down $0.58 to close the day at $69.31. In US share markets, the Nasdaq was up 10 points or 0.58% and the Dow Jones was up 57 points or 0.68%. Looking ahead, June Non Farm Payrolls forecast at -363K vs. -345K previously. The Unemployment Rate is forecast to rise to 9.6% vs. 9.4% previously.

Market Commentary Thursday 02 July 2009 // 07-02-2009
EUR/USD closed higher on Wednesday as it extends the rally off June's low. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bullish signalling that sideways to higher prices is possible near-term. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted. If it renews the decline off this month's high, the reaction low crossing is the next downside target.

U.S. Dollar Support By Comments From China's Vice Foreign Minister, FX Volatility Remains Low // 07-02-2009
Asia FX Summary (July 2nd) The dollar gained ground in Asian trading, aided by comments from China's Vice Foreign Minister stating that the USD is the main global reserve currency, and that he has not heard of the China request for a reserve currency debate. EUR-USD, which had been capped at 1.4201 in NY on Wednesday, had opened in Tokyo around 1.4150 before falling to 1.4101 on the comments from China. Similarly, Cable, which was capped around 1.6500 in Asian trading, dropped to 1.6452. USD-JPY was initially supported by fixing demand at morning lows of 96.38 and rallied to highs of 96.72 on China's comments. But, despite slight activity on China's comments, traders reported that overall volume was muted as the market waits for the ECB rate decision and later, the U.S. jobs data.

Daily Outlook 1st July 2009.UK GDP DROPS FASTEST IN 50 YEARS // 07-01-2009
The Sterling (GBP) broke resistance to surge to fresh year highs above 1.6700 in Asia as UK house Prices rose 0.9% vs. -0.5% forecast. In Europe, the downgrade of UK Q1 GDP to -2.4% vs. -1.9% initially caused a massive reversal of the pounds fortunes. Overall the GBP/USD traded with a low of 1.6422 and a high of 1.6745 before closing the day at 1.6465 in the New York session. Looking ahead, PMI Manufacturing is forecast at 46.5 vs. 45.4.

Market Commentary Wednesday 01 July 2009 // 07-01-2009
EUR/USD closed lower on Tuesday as it consolidates some of its recent gains. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices is possible near-term. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted. If it renews the decline off this month's high, the reaction low crossing is the next downside target.