Daily Forex update (Feb 29, 2008)

FOREX Daily Outlook by Easy-Forex.com

Another day of record highs across the board. Core PCE in focus

CURRENCY TRADING SUMMARY – 29 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) remained battered against a number of majors yesterday as Bernanke reconfirmed that major slowdowns in the economy. US economic growth was unrevised at an annual pace of 0.6 % in the 4th quarter which was weaker than the forecasted 0.7 % due to subsiding home sales and slumping inventories. GDP grew 2.2 % for all of 2007, which was the slowest since 2002, adding to further concerns on a fully blown recession. In U.S. share markets, NASDAQ was down by -22.21 points (-0.94%) whilst the Dow Jones was also down -112.10 points (-0.88%). Crude oil rose by US$3.15 a barrel to record highs of US$102.80. Looking ahead, key data in the form of Core PCE figures, Chicago PMI and Michigan Sentiment Survey are sure to create plenty of interest in final trading day for February.

· The Euro (EUR) continued to strengthen against the dollar with signs of a weakening US labor market pointing to further rate cuts by the Fed. Analysts forecast Euro momentum to continue unless weak Euro-Zone data is reported. Overall the EURUSD traded with a low of 1.5071 and a high of 1.5230 before closing the day at 1.5218 in the New York session.

· The Japanese Yen (JPY) strengthened against the dollar following a gloomy outlook in the U.S. Bank of Japan board member Atsushi Mizuno expressed concern about the side effects than the merits of any interest rate cuts, and speculated that bringing Japan’s low rates to normal levels would be necessary in the long run. Overall the USDJPY traded with a low of 105.07 and a high of 106.55 before closing the day at 105.22 in the New York session. A heavy data day is scheduled for Japan, with the release of Household spending, CPI (both Nationwide and Core) and Unemployment Rate.

· The Sterling (GBP) gains were capped with ongoing concerns over UK banking sectors. Royal Bank of Scotland posted in-line earnings and raised its dividend, but also raised its write downs on assets to GBP 2.13 billion. Central bank deputy governor John Gieve indicated that the development of inflation will be the key driver to whether the BoE would be cutting rates. Overall the GBPUSD traded with a low of 1.9759 and a high of 1.9948 before closing the day at 1.9921 in the New York session.

· The Australian Dollar (AUD) continued its charge to post fresh multi-year highs. The Aussie Dollar was further boosted by private capital expenditure which rose by 5.1% for the 4^th quarter. Overall the AUDUSD traded with a low of 0.9364 and a high of 0.9499 before closing the day at in the New York session

· Gold (XAU) Gold surged to new records of almost 970 along with OIL at 102 levels on inflation fears and a weak USD. XAU traded with a low of 953.65 and a high of 969.85

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4971	1.5074	1.5195	1.5230	1.5304
USD/JPY	107.97	105.09	105.30	106.65	107.39
GBP/USD	1.9644	1.9763	1.9880	1.9975	2.0000
AUD/USD	0.9318	0.9368	0.9475	0.9500	0.9555
XAU/USD	949.00	953.48	970.10	972.55	975.00

· Euro – 1.5195

Initial support at 1.4778 (Feb 26 low) followed by 1.4702 (Feb 21 low). Initial resistance is now located at 1.5050 (Feb 27 high) followed by 1.5096 (1.4440 plus 1.4311 to 1.967).

· Yen – 105.30

Initial support is located at 106.73 (Feb 22 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.22 (Feb 25 high) followed by 108.67 (38.2% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9880

Initial support at 1.9644 (Feb 26 low) followed by 1.9611 (Feb 22 low). Initial resistance is now at 1.9876 (Feb 26 high) followed by 1.9960 (Jan 30 reaction high)

· Australian Dollar – 0.9475

Initial support a 0.9216 (Feb 25 low) followed by 0.9167 (Feb 21 low). Initial resistance is now at 0.9400 (Round Number) followed by 0.9500 (Round Number)

· Gold – 970.10

Initial support at 906.1 (Feb 19 low) followed by 896.50 (Feb 7 low). Initial resistance is now at 954.60 (Feb 21 high) followed by 970.73 (Bull channel resistance)

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Daily Forex Update (Feb 28 2008)

FOREX Daily Outlook by Easy-Forex.com

Bernanke signals further rate cuts, as EURO, AUD, NZD, XAU, and Oil trade at record highs

CURRENCY TRADING SUMMARY – 28 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) traded at record lows versus a number of majors as Fed Chairman Ben Bernanke signaled his willingness to cut rate again in order to rejuvenate the world’s largest economy. In data news, Durable goods came in well below expectations at -5.3% (Forecast: -4%), and New How Sales fell to 0.588 mln for the month of January, adding to the greenbacks woes. In U.S. share markets the NASDAQ was up by 8.79 points (0.37%) whilst the Dow Jones also rallied by 9.36 points (+0.07%). Crude oil traded at a fresh record high once again, up by US$1.16 a barrel to US$102.08, before ending lower at US$99.72. On Thursday, Fed Chairman Bernanke will continue his two day testimony on Monetary Policy, whilst GDP data will also generate plenty of interest.

· The Euro (EUR) traded at an all time record high following Bernanke comments last night. Overall the EURUSD traded with a low of 1.4973 and a high of 1.5144 before closing the day at 1.5119 in the New York session.

· The Japanese Yen (JPY) rallied against the dollar on further weak economic outlooks. The USDJPY traded at a near month low of 105.96 and a high of 107.39 before closing the day 106.44 on the New York session.

· The Sterling (GBP) fell slightly against the greenback after Britain's largest mortgage lender HBOS fell over 8% dragging down other UK banks after it missed forecasts indicating the spillover affects from the sub-prime fallout has not been fully priced in. The GBPUSD traded with a low of 1.9833 and a high of 1.966 before closing the day at 1.9833 in the New York session

· The Australian Dollar (AUD) traded at a 23 low versus the dollar on higher commodities and bearish dollar sentiment. Overall the AUDUSD traded with a low of 0.9318 and a high of 0.9429 before closing the day at 0.9401 in the New York session. Once again the NZD also trade at a record high on Wednesday of 0.8213 on dovish Fed comments.

· Gold (XAU) hit a record $964.50 a troy ounce as the dollar sank to a record lows. XAU traded with a low of 948.50

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4778	1.4971	1.5115	1.5144	1.5231
USD/JPY	105.93	105.96	106.30	107.39	108.22
GBP/USD	1.9644	1.9809	1.9830	1.9975	2.0000
AUD/USD	0.9253	0.9318	0.9425	0.9433	0.9500
XAU/USD	926.60	948.35	960.00	965.10	970.73

· Euro – 1.5115

Initial support at 1.4778 (Feb 26 low) followed by 1.4702 (Feb 21 low). Initial resistance is now located at 1.5050 (Feb 27 high) followed by 1.5096 (1.4440 plus 1.4311 to 1.967).

· Yen – 106.30

Initial support is located at 106.73 (Feb 22 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.22 (Feb 25 high) followed by 108.67 (38.2% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9830

Initial support at 1.9644 (Feb 26 low) followed by 1.9611 (Feb 22 low). Initial resistance is now at 1.9876 (Feb 26 high) followed by 1.9960 (Jan 30 reaction high)

· Australian Dollar – 0.9425

Initial support a 0.9216 (Feb 25 low) followed by 0.9167 (Feb 21 low). Initial resistance is now at 0.9400 (Round Number) followed by 0.9500 (Round Number)

· Gold – 960.00

Initial support at 906.1 (Feb 19 low) followed by 896.50 (Feb 7 low). Initial resistance is now at 954.60 (Feb 21 high) followed by 970.73 (Bull channel resistance)

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Daily Forex Update(Feb 27 2008)

FOREX Daily Outlook by Easy-Forex.com

USD is battered on Kohn comments and abysmal consumer confidence, pushing Euro, Oil, and NZD to record highs. Ben Bernanke speaks on monetary Policy

CURRENCY TRADING SUMMARY – 27 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was battered across the board as reports showed that consumer confidence dropped in the month February 87.3 to 75.0, establishing its lowest level in five years. Consumers remain pessimistic that the world’s largest economy is destined to continue its slowing. The Dollar further suffered on dovish comments made by Fed Vice Chairman Kohn. In his speech today, Donald Kohn said that he did not foresee the current levels of elevated inflation to persist, reaffirming market expectations that the FOMC meeting in march will eventuate in another 50 bps cut. In U.S. share markets the NASDAQ was down 17.51 points (0.75%) whilst the Dow Jones was also up by 114.70 points (0.91%). Crude oil also traded at record high overnight of US$101.23 up US$2.00 a barrel. On Wednesday, heavy data is scheduled with the release of New Home Sales and Durable Goods for the month of Jan. More importantly, Fed Chairman Bernanke is scheduled for his semi-annual address on Monetary Policy, as markets will listen more attentively then usual to see if he echoes Vice Chairman Kohn comment last night or takes an opposing stance.

· The Euro (EUR) traded at a fresh record high on Tuesday, following a battered US dollar. In data specific news, the German IFO came in at 104.1, well above the expected 102.8, weakening the case for near-term Euro zone interest rate cuts and easing concerns about the health of the single currencies largest economy. The EURUSD traded low of 1.4779 with a high of 1.4984 before closing the day at 1.4968 in the New York session. Gfk consumer confidence and ECB Weber are the key events on Wednesday. UPDATE: The Euro broke through key 1.50 levels for the first time on the open of the Asian session, Trading at an all time high of 1.5050

· The Japanese Yen (JPY) strengthened on a broadly weaker dollar on Wednesday following a significantly concerned Fed Vice-Chairman last night. The USDJPY traded with a low of 107.20 and a high of 108.14 before closing the day at 107.24in the New York session.

· The Sterling (GBP) rose against the generally weaker greenback as the market caught up with the Bank of England's view that interest rates will be cut gradually, rather than sharply. Overall the GBPUSD traded with a low of 1.9640 and a high of 1.9874 before closing the day at 1.9858 in the New York session. UK GDP data is released on Wednesday.

· The Australian Dollar (AUD) continue gaining against the US dollar and Japanese yen, boosted by increased risk appetite as investors piled into higher yield currencies. Overall the AUDUSD traded with a low of 0.9250 and a high of 0.9335 before closing the day 0.9321 in the New York session. The NZD also traded at a record high early Asian Session trading with a high of 0.8186.

· Gold (XAU) surged on a broadly weaker dollar, higher oil prices and appeal as a safe haven investment. XAU traded with a low of 926.40 and a high of 948.50

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4702	1.4778	1.4995	1.5050	1.5096
USD/JPY	106.35	106.73	107.35	108.22	108.67
GBP/USD	1.9611	1.9644	1.9865	1.9876	1.9960
AUD/USD	0.9167	0.9216	0.9330	0.9400	0.9500
XAU/USD	906.10	926.60	951.80	953.70	970.73

· Euro – 1.4995

Initial support at 1.4778 (Feb 26 low) followed by 1.4702 (Feb 21 low). Initial resistance is now located at 1.5050 (Feb 27 high) followed by 1.5096 (1.4440 plus 1.4311 to 1.967).

· Yen – 107.35

Initial support is located at 106.73 (Feb 22 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.22 (Feb 25 high) followed by 108.67 (38.2% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9865

Initial support at 1.9644 (Feb 26 low) followed by 1.9611 (Feb 22 low). Initial resistance is now at 1.9876 (Feb 26 high) followed by 1.9960 (Jan 30 reaction high)

· Australian Dollar – 0.9330

Initial support a 0.9216 (Feb 25 low) followed by 0.9167 (Feb 21 low). Initial resistance is now at 0.9400 (Round Number) followed by 0.9500 (Round Number)

· Gold – 951.80

Initial support at 906.1 (Feb 19 low) followed by 896.50 (Feb 7 low). Initial resistance is now at 954.60 (Feb 21 high) followed by 970.73 (Bull channel resistance)

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Daily Forex Update(Feb 26 2008)

Daily Forex Update(Feb 25 2008)

FOREX Daily Outlook by Easy-Forex.com

Dollar continues to ease on rate cut expectations.

CURRENCY TRADING SUMMARY – 25 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) ended the week lower across the board on growing recession fears. In a quiet end to the week in terms of data the greenback eased as traders added to bets that the Federal Reserve will look to cut rates on the 18^th of March by as much as 50 bps. In U.S. share markets the NASDAQ was up by 3.57 points (+0.16%) whilst the Dow Jones was also up slightly by 96.72 points (+0.79%). Crude oil edged higher once again, falling short of the $100 target, up by US$0.83 a barrel to US$99.06. Looking ahead, key data is in the form of US Existing Home Sales, with economists forecasting a decline to 4.8 mln for the month of January, from the previous 4.89 mln.

· The Euro (EUR) rallied on the back of EURJPY crosses heading to a five week high of 159.58 on Thursday. In what was otherwise a dour session, the EURUSD traded with a low of 1.4786 and a high of 1.4863 before closing the day at 1.4824 in New York. ECB president Trichet is scheduled to testify in front of Parliament on Monday

· The Japanese Yen (JPY) traded at a week high versus the USD on the back of easing equity markets. As a result the JPY ceased eight successive session of decline versus the Euro and traded at its strongest level against the USD since Feb 12. Overall the USDJPY traded with a low of 106.69 and a high of 107.57 before closing the day at 106.92 in the New York session.

· The Sterling (GBP) strengthened versus the Euro and Dollar on Friday as robust UK retail data the previous session eased expectations about the extent of monetary easing likely from the Bank of England. Overall the GBPUSD traded with a low of 1.9607 and a high of 1.9709 before closing the day at 1.9684 in the New York session.

· The Australian Dollar (AUD) failed to break key 92 cent levels for much of the Asian session before heading to a week high of 0.9240 in Europe. Despite profit taking the AUD was able to return its day highs on higher stock prices at the close of New York. Overall the AUDUSD traded with a low of 0.9168 and a high of 0.9252 before ending the day at 0.9252. In Other news neighboring currency the New Zealand Dollar tested record 22 year highs of 0.8109 on Friday trading at a high of 0.8103

· The Czech Koruna (CZK) rose to a record against the Euro and posted a fifth weekly gain on speculation the central bank will raise interest rates. Policy makers have raised the rate 1.25 percentage points to 3.75 percent over the past 10 months. “The Czech story is really very positive,” said Nicholas Kennedy, an emerging-market currency strategist at 4Cast Ltd. in London. “Everyone's looking for a reason to pull back but it's not giving them a reason.” It has been the world's best-performing currency against the Euro this year, gaining 6 percent. The Czech currency also advanced to 16.916 per dollar, from 17.168 on Feb. 15. Overall the USDCZK traded with a low of 16.837 and a high of 16.98.

· Gold (XAU) fell from a record, as declining energy and commodity prices eased inflation concerns that had spurred demand for the precious metal as a hedge. Despite easing, XAU ended the week up 4.2% overall, the biggest weekly advance since November 2007. XAU traded with a low of 936.20 and a high of 949.40.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4611	1.4702	1.4835	1.4863	1.4956
USD/JPY	106.35	106.73	107.20	107.57	108.67
GBP/USD	1.9363	1.9611	1.9690	1.9709	1.9738
AUD/USD	0.9005	0.9113	0.9235	0.9252	0.9331
XAU/USD	896.50	906.10	944.70	954.60	970.73

· Euro – 1.4835

Initial support at 1.4702 (Feb 21 low) followed by 1.4611 (Feb 18 low). Initial resistance is now located at 1.4863 (Feb 22 low) followed by 1.4956 (Feb 1 high).

· Yen – 107.20

Initial support is located at 106.73 (Feb 22 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 107.57 (Feb 22 high) followed by 108.67 (38.2% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9690

Initial support at 1.9611 (Feb 22 low) followed by 1.9363 (Feb 20 low). Initial resistance is now at 1.9709 (Feb 22 high) followed by 1.9738 (Feb 14 high)

· Australian Dollar – 0.9235

Initial support a 0.9113 (Feb 20 low) followed by 0.9005 (Feb 15 low). Initial resistance is now at 0.9252 (Feb 22 high) followed by 0.9331 (Nov 8, 2007 high)

· Gold – 944.70

Initial support at 906.1 (Feb 19 low) followed by 896.50 (Feb 7 low). Initial resistance is now at 954.60 (Feb 21 high) followed by 970.73 (Bull channel resistance)

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Daily Forex Update(Feb 22 2008)

FOREX Daily Outlook by Easy-Forex.com

Manufacturing slows in the US, as UK Retail Sales soar.

CURRENCY TRADING SUMMARY – 22 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) eased slightly against a number of majors in a follow through from FOMC minutes on Wednesday, which prompted traders to anticipate further rate cuts from the Fed in the coming meeting (March 18^th), as the central bank lowered its 2008 growth forecasts. In data specific news, the Philly Fed survey was lower than forecasts coming in at -24.In US share markets, the NASDAQ was down by -96.23 points (-1.06%) whilst the Dow Jones was lower by 142.96 points (-1.15%). Crude oil eased from it record highs seen in the previous session. Crude dropped by US$2.71 a barrel to US$98.03.

· The Euro (EUR) gained broadly versus the dollar as output of the US came in on the weaker side. Despite the views that economic growth is expected to slow to 1.8% in 2008 from the previous 2.7%, inflation is expected to remain above the ECB comfort band. Overall the EURUSD traded with a low of 1.4703 and a high of 1.4838 before closing the day at 1.4815 in the New York session. PMI services and manufacturing surveys are released out of the Eurozone on Friday, and will hold interest amongst investors in identifying the extent of an economic slowdown

· The Japanese Yen (JPY) once again in a defined range tracking equity prices, despite coming under pressure in the early part of the trading day as appeal for risky trades were boosted by growing expectations of another rate cut out of the U.S. Overall the USDJPY traded with a low of 107.15 and a high of 108.33 before closing the day at 107.31 in the New York session.

· The Sterling (GBP) surged after much stronger than expected UK retail sales data. Sales grew 0.8 % in January recuperating from a 0.2 % fall in December, which was their strongest growth in almost a year. This prompted investors to scale back expectations of rate cuts by the BoE. Overall the GBPUSD traded with a low of 1.9489 and a high of 1.9627 before closing the day at 1.9618 in the New York session.

· The Australian Dollar (AUD) was timid, with little data out of Australia for the remaining part of the month. The AUD continued to test key levels above 92 cents, but failed to sustain any gains. Overall the AUDUSD traded with a low of 0.9167 and a high of 0.9209 before closing the day at 0.9191 in the New York session.

· Gold (XAU) traded once a gain at a fresh all time high despite oil prices heading lower. XAU traded with a low of 938.50 and a high of 953.60.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4611	1.4702	1.4815	1.4838	1.4956
USD/JPY	106.35	107.16	107.45	108.67	109.82
GBP/USD	1.9338	1.9363	1.9630	1.9643	1.9738
AUD/USD	0.8954	0.9005	0.9195	0.9239	0.9331
XAU/USD	896.50	906.10	943.40	954.60	970.73

· Euro – 1.4815

Initial support at 1.4702 (Feb 21 low) followed by 1.4611 (Feb 18 low). Initial resistance is now located at 1.4838 (Feb 21 low) followed by 1.4956 (Feb 1 high).

· Yen – 107.45

Initial support is located at 107.16 (Feb 21 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.67 (38.2% retracement of the 114.66 to 104.97 decline) followed by 109.82 (50% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9630

Initial support at 1.9363 (Feb 12 low) followed by 1.9338 (Feb 7 low). Initial resistance is now at 1.9643 (Feb 21 high) followed by 1.9738 (Feb 5 high)

· Australian Dollar – 0.9195

Initial support a 0.9005 (Feb 15 low) followed by 0.8954 (Feb 14 low). Initial resistance is now at 0.9239 (76.4% retracement of 0.9400 to 0.8513) followed by 0.9331 (Nov 9 high)

· Gold – 943.40

Initial support at 906.10 (Feb 19 low) followed by 896.50 (Feb 7 low). Initial resistance is now at 954.60 (Feb 21 high) followed by 970.73 (Bull channel resistance)

Forex trading involves substantial risk of loss, and may not be suitable for everyone.

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Daily Forex Update(Feb 21 2008)

FOREX Daily Outlook by Easy-Forex.com

Oil and XAU trade at record highs, on a rise in US CPI figures. BoE minutes on the “dovish” tone.

CURRENCY TRADING SUMMARY – 21 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) rallied broadly versus a number of majors as data showed that inflation had risen, prompting investors to trim bets the Fed will avoid slashing rates in their next gathering. Inflation increased 4.3 % in the 12 months through to January, on higher food prices. Core prices which exclude food and energy costs, also rose 0.3 % in January after gaining 0.2 % in December, which was the strongest monthly increase since June 2006. Housing starts provided further boost to the dollar rising to 1.012 mln a slight rebound from the 1.004 mln in December. In U.S. share markets the NASDAQ was up by 50.92 points (+0.56%) whilst the Dow Jones was also up by 90.04 points (+0.73%). Crude oil rallied by US$0.90 a barrel to a record high of US$101.00. The Philly Fed survey is scheduled for release on Thursday as the only key piece of economic data.

· The Euro (EUR) weakened on the back of buoyant CPI data out of the world’s largest economy. The Euro was further pressured on comment made German politician, Juergen Ruettger that the country's regional state-backed landesbanks are in crisis. Overall the EURUSD traded with a low of 1.4614 and a high of 1.4731 before closing the day at 1.4715 in the New York session.

· The Japanese Yen (JPY) weakened against the dollar after stronger than expected US CPI data. With encouraging CPI data, carry trade advanced to the forefront, strengthening the greenback against the yen. In other news the BoJ minutes were made public on Wednesday, with little surprises, confirming a 9 to 0 vote as concerns for low inflationary pressures persist. The UDJPY traded with a low of 107.48 and a high of 108.25 before closing the day at 108.17 in the New York session.

· The Sterling (GBP) minutes from the Bank of England's February policy meeting was released, which added further pressure to the pound. The minute’s revealed one Monetary Policy Committee member had aggressively called for a half-point rate cut. Although an 8-1 vote to lower the interest rate to 5.25% was revealed, David Blanchflower called for a half-point reduction. Overall the GBPUSD traded with a low of 1.9363 and a high of 1.9502 before closing the day at 1.9431 in the New York session.

· The Australian Dollar (AUD) wage price index was up 4.2 % for the year, and rose 1.1 % quarter-on-quarter on consensus adding to the argument for a hike in rates come March. However the Aussie dollar suffered on the back of Asian stocks heading lower. Overall the AUDUSD traded with a low of 0.9113 and high of 0.9212 before closing the day 0.9189 in the New York session.

· Gold (XAU) rose to an all time high as crude oil surged to a record $100.40 a barrel and U.S. inflation quickened last month, boosting the appeal of the precious metal as a hedge against rising consumer prices. XAU traded higher by US$9.50 an ounce to US$939.50.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4549	1.4611	1.4720	1.4759	1.4834
USD/JPY	106.35	107.22	108.05	108.67	109.82
GBP/USD	1.9338	1.9363	1.9425	1.9542	1.9738
AUD/USD	0.8954	0.9005	0.9195	0.9239	0.9331
XAU/USD	885.00	896.50	940.00	936.80	950.00

· Euro – 1.4720

Initial support at 1.4611 (Feb 14 low) followed by 1.4549 (Feb 12 low). Initial resistance is now located at 1.4759 (Feb 15 low) followed by 1.4834 (61.8% retracement of the 1.4956 to 1.4440 decline).

· Yen – 108.05

Initial support is located at 107.22 (Feb 15 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.67 (38.2% retracement of the 114.66 to 104.97 decline) followed by 109.82 (50% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9425

Initial support at 1.9363 (Feb 12 low) followed by 1.9338 (Feb 7 low). Initial resistance is now at 1.9542 (Feb 14 high) followed by 1.9738 (Feb 5 high)

· Australian Dollar – 0.9195

Initial support a 0.9005 (Feb 15 low) followed by 0.8954 (Feb 14 low). Initial resistance is now at 0.9239 (76.4% retracement of 0.9400 to 0.8513) followed by 0.9331 (Nov 9 high)

· Gold – 940.00

Initial support at 896.50 (Feb 13 low) followed by 885.0 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

Forex trading involves substantial risk of loss, and may not be suitable for everyone.

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Daily Forex Update(Feb 20 2008)

FOREX Daily Outlook by Easy-Forex.com

RBA considered a 50 point hike. US CPI and FOMC minutes of key importance

CURRENCY TRADING SUMMARY – 20 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) in what was quiet data day, the Greenback trading in a range against a number of majors. In U.S. share markets, the NASDAQ was down -15.60 points (-0.67%) whilst the Dow Jones was also down by -10.99 pts (-0.09%). Crude oil broke level of US$100 a barrel last night, rising by US$4.51. Looking ahead key data in the form of Core CPI (Forecast: 0.2%; Prior: 0.2%) and Housing Starts (Forecast: 1015K; Prior: 1006K) is out on Wednesday. Although, focus will soon shift to the FOMC minutes of the Jan 30 meeting in which the members voted for a 50bps cut, for any indication of monetary policy outlooks.

· The Euro (EUR) gained versus the dollar ECB member Noyer said he “remains confident” about France's economic situation despite global economic turbulence. Overall the EURUSD traded with a low of 1.4642 and a high of 1.4757 before closing the day at 1.4733 in the New York session.

· The Japanese Yen (JPY) once again tracked stock prices as the N225 closed 0.9% higher. The JPY did depreciate against a number of majors all but the Sterling Pound. Overall the USDJPY traded with a low of 107.21 and a high of 108.30 before closing the day at 107.61 in the New York session.

· The Sterling (GBP) one of the few currencies that failed to gain versus the dollar as it remains pressured by the U.K. government's plans to nationalize troubled lender Northern Rock Plc and by relatively dovish comments from Bank of England Monetary Policy Committee member Besley yesterday. Overall the GBPUSD traded with a low of 1.9455 and a high of 1.9541 before closing the day at 1.9487 in the New York session.

· The Australian Dollar (AUD) was boosted by hawkish RBA minutes during the Asian session, in which it was revealed that the members had considered a 50 bps rate hike, although the decision to increase by 25 bps on the 5^th of February was finely balanced. Such statements left the door open for another rate hike as early as march, boosting demand for the AUD. Overall the AUDUSD traded with a low of 0.9135 and a high of 0.9237 before closing the day at 0.9207 in the New York Session

· Gold (XAU) rallied on the back of higher energy prices. XAU rose by US$24.50 an ounce to US$930.60.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4496	1.4539	1.4725	1.4709	1.4759
USD/JPY	106.35	107.27	107.85	108.67	109.82
GBP/USD	1.9389	1.9444	1.9475	1.9738	1.9763
AUD/USD	0.8954	0.9005	0.9175	0.9191	0.9321
XAU/USD	885.00	896.50	928.90	927.31	936.80

· Euro – 1.4650

Initial support at 1.4549 (Feb 14 low) followed by 1.4496 (Feb 12 low). Initial resistance is now located at 1.4709 (Feb 15 low) followed by 1.4759 (61.8% retracement of the 1.4956 to 1.4440 decline).

· Yen – 108.20

Initial support is located at 107.27 (Feb 15 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.67 (38.2% retracement of the 114.66 to 104.97 decline) followed by 109.82 (50% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9510

Initial support at 1.9444 (Feb 12 low) followed by 1.9389 (Feb 7 low). Initial resistance is now at 1.9738 (Feb 14 high) followed by 1.9763 (Feb 5 high)

· Australian Dollar – 0.9165

Initial support a 0.9005 (Feb 15 low) followed by 0.8954 (Feb 14 low). Initial resistance is now at 0.9191 (76.4% retracement of 0.9400 to 0.8513) followed by 0.9321 (Nov 9 high)

· Gold – 906.40

Initial support at 896.50 (Feb 13 low) followed by 885.0 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

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Daily Forex Update(Feb 19 2008)

FOREX Daily Outlook by Easy-Forex.com

US Markets close for president holiday. RBA expected to be hawkish signaling further rate hikes.

CURRENCY TRADING SUMMARY – 19 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was a quiet session of trade as markets in the US were closed on the back of President’s Day Holiday, as bearish sentiment followed through from Friday’s poor data readings. Market is expected to resume on Tuesday although the only event worthy of noting would be Fed Official Stern speaking on the state of the US economy.

· The Euro (EUR) gave up some of its late rally seen last week on the back of poor data. With the absence of data coupled with US holidays, the Euro held broadly in a range trading technically for much the day. Overall the EURUSD traded with a low of 1.4611 and a high of 1.4689 before closing the day at 1.4655.

· The Japanese Yen (JPY) demand for services saw its largest drop in three months with Tertiary Index fell by -0.6% from the previous month. Overall the USDJPY traded with a low of 107.76 and a high of 108.09 before closing the day at 107.65.

· The Sterling (GBP) continued its decline versus the dollar, further tumbling on news that that the U.K. government plans to nationalize troubled U.K. financial institution Northern Rock Plc. Traders pushed the pair lower on concerns that other U.K. financial institution might have significant exposure to asset-backed securities and collateralized debt obligations. Overall the GBPUSD traded with a low of 1.9477 and a high of 1.9522 before closing the day at 1.9603.

· The Australian Dollar (AUD) continues to find support on the back of higher commodity prices. The Aussie dollar broke through key 91 cent level during the Asian session of trade as Platinum reached an all time high, further boosted by the RBA minutes scheduled for release on Tuesday morning. Overall the AUDUSD traded with a low of 0.9071 and a high of 0.9140 before closing the day at 0.9126. As stated, further detail on the Reserve Bank of Australia future outlooks will be revealed on Tuesday, with emphasis placed on mention of the upside risk to inflation balanced with the slowing global growth.

· Gold (XAU) once gain held in tight range. XAU traded with a low of 900.90 and a high of 909.25

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4496	1.4539	1.4650	1.4709	1.4759
USD/JPY	106.35	107.27	108.20	108.67	109.82
GBP/USD	1.9389	1.9444	1.9510	1.9738	1.9763
AUD/USD	0.8954	0.9005	0.9165	0.9191	0.9321
XAU/USD	885.00	896.50	906.40	927.31	936.80

· Euro – 1.4650

Initial support at 1.4549 (Feb 14 low) followed by 1.4496 (Feb 12 low). Initial resistance is now located at 1.4709 (Feb 15 low) followed by 1.4759 (61.8% retracement of the 1.4956 to 1.4440 decline).

· Yen – 108.20

Initial support is located at 107.27 (Feb 15 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.67 (38.2% retracement of the 114.66 to 104.97 decline) followed by 109.82 (50% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9510

Initial support at 1.9444 (Feb 12 low) followed by 1.9389 (Feb 7 low). Initial resistance is now at 1.9738 (Feb 14 high) followed by 1.9763 (Feb 5 high)

· Australian Dollar – 0.9165

Initial support a 0.9005 (Feb 15 low) followed by 0.8954 (Feb 14 low). Initial resistance is now at 0.9191 (76.4% retracement of 0.9400 to 0.8513) followed by 0.9321 (Nov 9 high)

· Gold – 906.40

Initial support at 896.50 (Feb 13 low) followed by 885.0 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

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Daily Forex Update(Feb 18 2008)

FOREX Daily Outlook by Easy-Forex.com

Poor data out of the US signals further economic concerns. BoJ keep rates on hold at 0.50% in a unanimous vote.

CURRENCY TRADING SUMMARY – 18 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) fell across the board as disappointing data ensured the greenback remained heavily pressured. New York manufacturing and tumbling consumer confidence added to concern that the U.S. economy is headed for a recession. The NY Fed manufacturing survey fell to -11.72 for the month of February, signaling a contraction for the first time in almost 3 years, whilst Consumer Confidence recorded it lowest reading since 1992, coming in at 69.6. In US share markets, the NASDAQ was down by -10.74 points (-0.46%), whilst the Dow Jones also declined by -28.77 points (-0.23%). Crude oil fell from a five week high on speculation U.S. demand will drop after a report showed that consumer confidence slumped to the lowest level since 1992. However, Crude did end the day up by US$0.23 a barrel to US$95.69.

· The Euro (EUR) traded at a week high on the back of poor data out of the US, prompting investors to look for alternative currencies. Its rise of 1.3% versus the dollar is the biggest weekly advance since Dec 28, 2007. In Eurozone specific data, Trade Balance for the month of December declined by -4.2 bln, well short of the expected 2.4 bln rise. Overall the EURUSD traded with a low of 1.4632 and a high of 1.4709 before closing the day at 1.4669 in the New York session.

· The Japanese Yen (JPY) fell earlier after the Bank of Japan voted unanimously on Friday to keep interest rates unchanged at 0.5 percent, as expected. With Governor Toshihiko Fukui citing the decision on the back of inflationary risks remaining low. The JPY capped its losses on the back of poor manufacturing data out of the US, ensuring the USDJPY traded with a low of 107.22 and a high of 108.32 before closing the day at 107.67 in the New York session.

· The Sterling (GBP) ceased five days of gains against the dollar as investors viewed the recent rally to be a misrepresentation of the UK economy, and future policy outcomes. However any further declines were limited on the back of poor US data. Overall the GBPUSD traded with a low of 1.9597 and a high of 1.9722 before closing the day at 1.9614 in the New York session.

· The Australian Dollar (AUD) remained firm throughout the Asian session, and was buoyed by poor US data in the New York session. Overall the AUDUSD traded with a low of 0.9009 and a high of 0.9098 before closing the day at 0.9071 in the New York session.

· Gold (XAU) traded lower on the back of easing oil prices, as investors were subject to profit taking. XAU traded with a low of 898.70 and a high of 915.20.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4549	1.4631	1.4680	1.4698	1.4759
USD/JPY	106.35	107.00	107.85	108.67	109.82
GBP/USD	1.9551	1.9606	1.9575	1.9738	1.9763
AUD/USD	0.8954	0.9005	0.9080	0.9102	0.9125
XAU/USD	885.00	896.50	902.60	927.31	936.80

· Euro – 1.4680

Initial support at 1.4631 (Feb 15 low) followed by 1.4549 (Feb 14 low). Initial resistance is now located at 1.4698 (50% retracement of the 1.4956 to 1.4440 decline) followed by 1.4759 (61.8% retracement of the 1.4956 to 1.4440 decline).

· Yen – 107.85

Initial support is located at 107.00 (Feb 13 low) followed by 106.35 (Feb 11 low). Initial resistance is now at 108.67 (38.2% retracement of the 114.66 to 104.97 decline) followed by 109.82 (50% retracement of the 114.66 to 104.97 decline)

· Pound – 1.9575

Initial support at 1.9606 (Feb 15 low) followed by 1.9551 (Feb 13 low). Initial resistance is now at 1.9738 (Feb 14 high) followed by 1.9763 (Feb 5 high)

· Australian Dollar – 0.9080

Initial support a 0.9005 (Feb 15 low) followed by 0.8954 (Feb 14 low). Initial resistance is now at 0.9102 (Feb 4 high) followed by 0.9125 (Nov 12, 2007 high)

· Gold – 902.60

Initial support at 896.50 (Feb 13 low) followed by 885.0 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

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Daily Forex Update(Feb 15 2008)

FOREX Daily Outlook by Easy-Forex.com

Bernanke signals more US rate cuts are on the agenda.

CURRENCY TRADING SUMMARY – 15 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) eased against a number of majors as Fed Chairman Bernanke signaled the Central Bank may continue to cut rates further, amidst concerns the US was headed into recession. His comments addressed the Fed “will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks”, causing futures market to price in an 80% chance that policy makers will move to cut by another 50bps in the next rate meeting on the 18 march. In U.S. share markets the NASDAQ was lower on Thursday by 41.39 points (-1.74%) whilst the Dow Jones also fell by -175.26 (-1.40%). Crude oil fell by rose by US$2.15 a barrel to US$95.42. Looking ahead, heavy data day is scheduled for Friday, with the releases of TIC flows, NY Fed Manufacturing, Industrial Production, and Michigan sentiment survey.

· The Euro (EUR) rallied to a week high post “dovish” Bernanke comments yesterday. On the data front, Eurozone GDP came in better than forecasted in at 0.4%/2.3% for the fourth quarter (Forecast: 0.3%/2.2%). Overall the EURUSD traded with a low of 1.4550 and a high of 1.4649 before closing the day at 1.4634 in the New York session. EU Trade Balance on is scheduled for release on Friday.

· The Japanese Yen (JPY) erased a loss versus the dollar as Bernanke warned that tighter credit will be a “restraint on economic growth”, sparking declines in U.S. stocks. Overall the USDJPY traded with a low of 107.77 and a high of 108.61 before closing the day at 107.97 in the New York session. Looking ahead, the BoJ is scheduled to make a rate announcement, although widely expected that rates will be held at 0.50%.

· The Sterling (GBP) pound gained against 11 of the 16 most-traded currencies as traders reduced bets on interest-rate cuts by the Bank of England this year after Governor Mervyn King said on Wednesday, that price growth will overshoot the bank's 2 percent goal in two years. Overall the GBPUSD traded with a low of 1.9616 and a high of 1.9738 before closing the day at 1.9688 in the New York session.

· The Australian Dollar (AUD) was boosted by all time lows in Unemployment Rate coming in at 4.1%, below forecasted figures of 4.3%. The buoyant data confirmed that the labour force had grown by 26.8K jobs, adding to growing expectations that the RBA may move to increase rates in their March meeting.

· Gold (XAU) traded steady around $910 levels amid rising oil prices. XAU traded with a low of 902.15 and a high of 913.80.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4440	1.4549	1.4645	1.4648	1.4698
USD/JPY	106.35	107.00	107.80	108.67	109.82
GBP/USD	1.9551	1.9616	1.9690	1.9738	1.9763
AUD/USD	0.8916	0.8954	0.9020	0.9086	0.9102
XAU/USD	885.00	896.70	909.60	927.31	936.80

· Euro – 1.4645

Initial support at 1.4440 (Feb 7 low) followed by 1.4366 (Jan 22 reaction low). Initial resistance is now located at 1.4615 (Feb 12 high) followed by 1.4637 (38.2% retracement of the 1.4956 to 1.4440 decline).

· Yen – 107.80

Initial support is located at 105.71 (Jan 31 low) followed by 104.97 (Jan 23 low). Initial resistance is now at 107.66 (Feb 11 high) followed by 107.89 (Jan 28 high)

· Pound – 1.9690

Initial support at 1.9403 (Feb 11 low) followed by 1.9389 (Feb 7 low). Initial resistance is now at 1.9643 (Feb 12 high) followed by 1.9763 (Feb 5 high)

· Australian Dollar – 0.9020

Initial support a 0.8916 (Feb 8 low) followed by 0.8875 (Feb 7 low). Initial resistance is now at 0.9086 (Feb 12 high) followed by 0.9102 (Feb 4 high)

· Gold – 909.60

Initial support at 896.70 (Feb 13 low) followed by 885.0 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

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Daily Forex Update(Feb 14 2008)

FOREX Daily Outlook by Easy-Forex.com

Buoyant US Retail Sales, Hawkish BoE quarterly report, Aussie Unemployment at fresh 33 year lows of 4.1%

CURRENCY TRADING SUMMARY – 14 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was mixed versus a number of majors, holding firm on positive Retail Sales out of the U.S. for the month of January coming above expectations, as Core figures were released at 0.3% (F: 0.2%; P: -0.3%R), whilst Headline figures came in at 0.3% (F: -0.2%; P: -0.4%). In U.S. share markets the NASDAQ was up by 108.13 points (+1.21%) whilst the Dow Jones was also higher by 178.45 points (+1.45%). Crude oil was higher by US$0.36 a barrel to US$93.14 after Venezuela said it would stop supplying oil to EXXON Mobil. Thursday sees the weekly release of Initial Jobless claims, whilst Ben Bernanke, and Henry Paulson are scheduled to testify in front of the Senate Banking Committee

· The Euro (EUR) held firm, despite US retail sales unexpectedly rising for the month of January. In Eurozone specific news, Industrial Production declined by -0.2% for the month of December, well short of the forecasted figures of 0.6%, and inline with recent rhetoric surrounding slowing growth in the Eurozone. Overall the EURUSD traded with a low of 1.4530 and a high of 1.4600 before closing the day at 1.4579 in the New York session. Looking ahead, key growth data in the form of GDP for the fourth quarter 0.3% (Forecast: 0.4%; Previous: 0.8%)

· The Japanese Yen (JPY) fell to a one-month low against the dollar after U.S. retail sales unexpectedly rose last month, allaying concern that the world's biggest economy will slide into a recession and hurt global growth. The currency dropped against 14 of the 16 most-active currencies as U.S. stocks rose, signaling traders are more confident to bet on higher-yielding assets funded by loans in Japan. Overall the USDJPY traded with a low 107.00 and a high of 108.37 before closing the day 108.22 in the New York session. Japanese GDP data released on Thursday morning was released at 0.9% (Forecast: 0.4%; Prior: 0.4%) for the fourth quarter.

· The Sterling (GBP) rallied to a two week high against the Euro after the Bank of England raised its inflation forecast, prompting traders to pare bets on interest-rate cuts from the UK. The Sterling Pound also traded at week highs versus the dollar as the central bank forecast in its quarterly inflation report on Wednesday that price growth will overshoot its 2 percent goal in two years even as “downside” risks to the economy remain. The pound also gained as a government report showed unemployment fell to a three-decade low in January. Overall the GBPUSD traded with a low of 1.9552 and a high of 1.9654 before closing the day at 1.9650 in the New York session.

· The Australian Dollar (AUD) paired its weekly gains on positive retail sales figures from the US. The AUDUSD traded with a low of 0.8924 and high of 0.9046 before closing the day at 0.8951 in the New York session. Unemployment Rate for the Aussie is out on Thursday morning with forecast expected to be at 4.3%, same as the previous. UPDATE: Unemployment rate at 4.1%.

· Gold (XAU) little changed in New York, may fall on speculation a rally in equities will reduce the appeal of the precious metals as alternative investments. XAU traded with a low of 896.00 and a high of 910.00.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4366	1.4440	1.4555	1.4615	1.4637
USD/JPY	104.97	105.71	108.25	108.37	108.65
GBP/USD	1.9389	1.9403	1.9620	1.9666	1.9763
AUD/USD	0.8875	0.8916	0.8970	0.9086	0.9102
XAU/USD	885.00	896.70	906.40	927.31	936.80

· Euro – 1.4555

Initial support at 1.4440 (Feb 7 low) followed by 1.4366 (Jan 22 reaction low). Initial resistance is now located at 1.4615 (Feb 12 high) followed by 1.4637 (38.2% retracement of the 1.4956 to 1.4440 decline).

· Yen – 108.25

Initial support is located at 105.71 (Jan 31 low) followed by 104.97 (Jan 23 low). Initial resistance is now at 107.66 (Feb 11 high) followed by 107.89 (Jan 28 high)

· Pound – 1.9620

Initial support at 1.9403 (Feb 11 low) followed by 1.9389 (Feb 7 low). Initial resistance is now at 1.9643 (Feb 12 high) followed by 1.9763 (Feb 5 high)

· Australian Dollar – 0.8970

Initial support a 0.8916 (Feb 8 low) followed by 0.8875 (Feb 7 low). Initial resistance is now at 0.9086 (Feb 12 high) followed by 0.9102 (Feb 4 high)

· Gold – 906.40

Initial support at 896.70 (Feb 13 low) followed by 885.0 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

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Daily Forex Update(Feb 13 2008)

FOREX Daily Outlook by Easy-Forex.com

UK inflation at seven month high, as US shares buoyed by Buffet offer.

CURRENCY TRADING SUMMARY – 13 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was subject to moves in stock prices as growing confidence and reports billionaire investor Warren Buffet offered to assume troubled bond insurers’ liabilities, encouraged investors to buy risky assets. In what was otherwise a quiet day in terms of data, the USD was mixed against a number of majors. In U.S. share markets the NASDAQ was up by 97.07 points (+1.09%) whilst the Dow Jones was also higher by 133.40 points (+1.09%). Crude oil eased on hopes that oil supplies would not cease to the US from Venezuela, falling by US$0.69 a barrel to US$92.90. Looking ahead, Core Retail Sales out of the US will prove key to today’s market, with forecast lying at 0.2%, above the previous figures of -0.3% for the month of January.

· The Euro (EUR) rose to its highest level during the month, on the back of the German ZEW survey, which indicated that consumer confidence unexpectedly strengthened in the month of February, prompting the belief that the Eurozone economy would weather the effects of a U.S. economic slow down. The EURUSD traded with a low of 1.4497 and a high of 1.4615 before closing the day at 1.4591 in the New York session. Looking ahead, the EU industrial Production is expected to show a rebound of 0.6% for the month of December, from the previous -0.5%.

· The Japanese Yen (JPY) was sold off on comments made by Warren Buffet on bailing out bond insurers, spurring a rally in stocks. Overall the USDJPY traded with a low of 106.79 and a high of 107.53 before closing the day at 107.35 in the New York session. Heavy data day is scheduled for Japan, with corporate goods, Consumer confidence and Current Account all scheduled for release.

· The Sterling (GBP) U.K. inflation accelerated to a seven-month high in January on the back of soaring gasoline and food prices. Although the Sterling pound fell by 0.3% prior to the data release, it rallied shortly after, rebounding by 0.5%. Overall the GBPUSD traded with a low of 1.9446 and a high of 1.9633 before closing the day at 1.9620 in the New York session.

· The Australian Dollar (AUD) traded in a tight range, remaining firm above key 90 cent levels throughout the day. Overall the AUDUSD traded with a low of 0.9027 and a high of 0.9086 before closing the day at 0.9043 in the New York session.

· Gold (XAU) US gold futures fell 2 percent and were below $910 an ounce hurt by a sharp decline in bullion demand from top consumer India and profit-taking amid lower crude oil prices. XAU traded with a low of 904.60 and a high of 924.60.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4366	1.4440	1.4585	1.4615	1.4637
USD/JPY	104.97	105.71	107.35	107.66	107.89
GBP/USD	1.9389	1.9403	1.9595	1.9643	1.9763
AUD/USD	0.8875	0.8916	0.9035	0.9086	0.9102
XAU/USD	897.00	904.54	906.30	927.31	936.80

· Euro – 1.4585

Initial support at 1.4440 (Feb 7 low) followed by 1.4366 (Jan 22 reaction low). Initial resistance is now located at 1.4615 (Feb 12 high) followed by 1.4637 (38.2% retracement of the 1.4956 to 1.4440 decline).

· Yen – 107.35

Initial support is located at 105.71 (Jan 31 low) followed by 104.97 (Jan 23 low). Initial resistance is now at 107.66 (Feb 11 high) followed by 107.89 (Jan 28 high)

· Pound – 1.9595

Initial support at 1.9403 (Feb 11 low) followed by 1.9389 (Feb 7 low). Initial resistance is now at 1.9643 (Feb 12 high) followed by 1.9763 (Feb 5 high)

· Australian Dollar – 0.9035

Initial support a 0.8916 (Feb 8 low) followed by 0.8875 (Feb 7 low). Initial resistance is now at 0.9086 (Feb 12 high) followed by 0.9102 (Feb 4 high)

· Gold – 906.30

Initial support at 904.54 (Feb 12 low) followed by 897.00 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

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Daily Forex Update(Feb 12 2008)

FOREX Daily Outlook by Easy-Forex.com

UK PPI boosts outlook for economy, as G7 remain cautious on global growth

CURRENCY TRADING SUMMARY – 12 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was generally firmer in the US session against a number of majors, as risk aversion prompted a broad sell off in high yielder’s. In what was a quiet day for data, ministers and central bankers of the seven rich nations ended a week long meeting in Tokyo with a statement that “downside risks persist”, including the U.S. housing slump and tighter global credit conditions. The group estimates banks worldwide will suffer write-downs of $400 billion, German Finance Minister Peer Steinbrueck said. Financial institutions have marked down about $146 billion of losses since the start of 2007. In U.S. share markets the NASDAQ was up by 45.16 points (0.51%) whilst the Dow Jones was also up by 57.88 (0.48%). Crude oil rose by US$1.78 a barrel to US$93.55.

· The Euro (EUR) capped its gains versus the dollar as much of the emphasis being placed on remarks from monetary policymakers. The EURUSD traded with a low of 1.4482 and a high of 1.4577 before closing the day at 1.4517.

· The Japanese Yen (JPY) rose the most this month against the dollar after the Group of Seven nations warned of further financial-market turmoil, spurring investors to reduce holdings of higher-yielding assets bought with loans from Japan. Japan's currency extended its gains versus the Euro and dollar this year to at least 4.6 percent after the G-7 in a meeting this weekend estimated global banks will write down $400 billion because of losses on U.S. sub-prime mortgages. Overall the USDJPY traded with a low of 106.34 and high of 107.65 before closing the day at 106.97 in the New York session.

· The Sterling (GBP) held largely steady against the Dollar and Euro paring earlier looses after a surge in wholesale UK inflation cooled forecasts on how much the BoE will cut interest rates. Much of the sentiment was boosted by UK PPI data, coming in at 0.8% for the month of January, well above the forecasted 0.3%. Overall the GBPUSD traded with a low of 1.9404 and a high of 1.9529 before closing the session at 1.9497 in New York. Looking ahead, CPI and Retail Sales figures will prove key to any outlook to the UK economy.

· The Australian Dollar (AUD) rallied on hawkish RBA monetary policy statements forecasting that inflation will remain above the comfort band of 2% - 3% until 2010, prompting traders to price further rate hikes by the RBA. Overall the AUDUSD traded with a low of 0.8943 and a high of 0.9058 before closing the day at 0.9035 in the New York session.

· Gold (XAU) futures rose to a one-week high after energy costs climbed, boosting the appeal of the precious metal as a hedge against inflation. XAU traded with a low of 916.35 and a high of 926.90.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4366	1.4440	1.4510	1.4597	1.4637
USD/JPY	104.97	105.71	106.90	107.66	107.89
GBP/USD	1.9389	1.9403	1.9505	1.9530	1.9624
AUD/USD	0.8875	0.8916	0.9035	0.9060	0.9102
XAU/USD	897.00	907.75	923.00	927.31	936.80

· Euro – 1.4510

Initial support at 1.4440 (Feb 7 low) followed by 1.4366 (Jan 22 reaction low). Initial resistance is now located at 1.4597 (Feb 11 high) followed by 1.4637 (38.2% retracement of the 1.4956 to 1.4440 decline).

· Yen – 106.90

Initial support is located at 105.71 (Jan 31 low) followed by 104.97 (Jan 23 low). Initial resistance is now at 107.66 (Feb 11 high) followed by 107.89 (Jan 28 high)

· Pound – 1.9505

Initial support at 1.9403 (Feb 11 low) followed by 1.9389 (Feb 7 low). Initial resistance is now at 1.9530 (Feb 11 high) followed by 1.9624 (Feb 7 high)

· Australian Dollar – 0.9035

Initial support a 0.8916 (Feb 8 low) followed by 0.8875 (Feb 7 low). Initial resistance is now at 0.9060 (Feb 11 high) followed by 0.9102 (Feb 4 high)

· Gold – 923.00

Initial support at 907.75 (Feb 8 low) followed by 897.00 (Feb 7 low). Initial resistance is now at 927.31 (Feb 11 high) followed by 936.80 (Feb 1 trend high)

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Daily Forex Update(Feb 11 2008)

FOREX Daily Outlook by Easy-Forex.com

G7 meeting over weekend warns of further financial turmoil and risks to growth due to U.S housing slump and financial market losses.

CURRENCY TRADING SUMMARY – 11 February 2008 (08:00 GMT)

· U.S. Dollar Trading (USD) G7 officials warned over the weekend of further financial market turmoil which implied global interest rate cuts and tax deductions to stimulate the global economy. The G7 weekend ended with a statement that ‘’downside risks persist’’ including the U.S housing slump and tighter credit conditions. No specific remedies were suggested however they pledged ‘’appropriate actions, individually and collectively.’’

· The Euro (EUR) The euro rose against 12 of the most-traded currencies after

Jean Claude commented that ‘’economic fundamentals are sound’’ and that no policies are calling for interest rate cuts. Furthermore the euro gained some of its prior weak losses after a G7 report warning further risks to the U.S housing market.

· The Japanese Yen (JPY) The JPY traded in a tight range of 107.80 – 107.20 since last Thursday. During the Asian session after the G7 reports on further ‘’downside risks persisting’’ in the U.S economy including the housing market the JPY broke the trading range and traded at 107.05 at 5:45 GMT.

· The Sterling (GBP) saw the Bank of England cut rates by 0.25% as widely expected citing slowing global growth and tighter credit conditions. The nine-member Monetary Policy Committee, led by Governor Mervyn King, reduced borrowing costs a quarter-percentage point for the second time since December to shore up Europe's second-biggest economy. PPI Output and Input figures are released today and are expected to confirm some inflationary pressures however this is not expected to stop the BoE from cutting further the rates over the course of the next quarter.

· The Australian Dollar (AUD) The Australian dollar rallied and government bonds fell after the RBA stated that further interest rate hikes are likely so as to curb off an 11 year high inflation rate. The Australian dollar was the best performer amongst the 16 most actively traded currencies as the Central bank said inflation was ‘’uncomfortably high’’. The currency climbed to 90.29 U.S cents at 5 p.m in Sydney, from 89.75 cents immediately before. The futures markets are pricing a 69% from a 30% chance before the RBA made the statements.

· Gold (XAU) Gold may rise for a fourth straight week as lower borrowing costs and rising commodity prices cause an inflow of money in to the precious metals markets as a mean to retain value. A survey made by Bloomberg asking 27 traders ranging from Mumbai to New York showed that the majority 19 out of the 27 advised in the purchasing of Gold. The precious metal rose 1% last week to $922.33 a troy ounce in New York.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.44	1.444	1.455	1.467	1.485
USD/CHF	1.088	1.093	1.098	1.11	1.112
GBP/USD	1.9338	1.939	1.944	1.976	1.994
AUD/USD	0.8819	0.888	0.903	0.91	0.913
XAU/USD	885	897	921.6	925	936.8

· Euro – 1.4552

Initial support at 1.4440 (Feb 7 low) followed by 1.4395 (Triangle base). Initial resistance is now located at 1.4672 (Feb 6 high) followed by 1.4849 (Feb 4 high).

· CHF – 1.0982

Initial support is located at 1.0934 (Feb 7 low) followed by 1.0877 (Feb 5 low). Initial resistance is now at 1.1103 (Feb 7 high) followed by 1.1122 (Jan 22 high)

· Pound – 1.9440

Initial support at 1.9389 (Feb 7 low) followed by 1.9338 (Jan 22 low). Initial resistance is now at 1.9763 (Feb 5 high) followed by 1.9941 (Feb 1 high)

· Australian Dollar – 0.8955

Initial support a 0.8875 (Jan 7 low) followed by 0.8819 (Jan 31 low). Initial resistance is now at 0.9102 (Feb 4 high) followed by 0.9125 (Nov 12, 2007 high)

· Gold – 910.00

Initial support at 897.00 (Feb 7 low) followed by 885.00 (Feb 5 low). Initial resistance is now at 925.00 (Psychological barrier) followed by 936..80 (Feb 1 High)

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Daily Forex Update(Feb 8 2008)

FOREX Daily Outlook by Easy-Forex.com

BoE cut rates by 25 bps, as ECB hold citing slowing growth.

CURRENCY TRADING SUMMARY – 08 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) rallied trading on the back of other markets, as recent US economic slow down causing jitters in other markets. With limited data out of the US, Pending Home Sales fell to 85.9K for the month December, from the previous 87.6K. In U.S. share markets the NASDAQ was higher by 14.28 points (0.63%) whilst the Dow Jones was also higher by 46.90 points (+0.38%). Crude oil was also higher by US$0.13 a barrel to US$88.24.

· The Euro (EUR) saw the ECB hold rates at 4% on Thursday as concerns surrounding inflation remain prominent. The Euro fell to the lowest level in more than two weeks against the Dollar as European Central Bank President Jean-Claude Trichet said the U.S. economic slowdown may curb growth in Europe. The central bank remained concerned about a potential wage-price spiral. Inflation in the 15 countries sharing the euro accelerated to 3.2 percent in January. As a result the Euro headed for it biggest weekly loss versus the dollar in 1 ½ years. Overall the EURUSD traded with a low 1.4438 and a high of 1.4653 before closing the day at 1.4483 in the New York session.

· The Japanese Yen (JPY) once again tracked stock prices supported by risk aversion on dovish central banks. Overall the USDJPY traded with a low of 105.89 and a high of 107.81 before closing the day at 107.49 in the New York session. Machine orders fell by -3.2% for the month of December (Forecast: -0.9%; Prior: -2.8%)

· The Sterling (GBP) saw the Bank of England cut rates by 0.25% as widely expected citing slowing global growth and tighter credit conditions. The nine-member Monetary Policy Committee, led by Governor Mervyn King, reduced borrowing costs a quarter-percentage point for the second time since December to shore up Europe's second-biggest economy, while acknowledging “upside risks” to inflation. Overall the GBPUSD traded with a low of 1.9388 and a high of 1.9625 before closing the day 1.9431 in the New York session.

· The Australian Dollar (AUD) was choppy on the back of other majors, as growing concerns of tighter global conditions, and dovish moves/comments from other central banks. However with equity prices in the black, the AUD found support once again on a return to high yielder. Overall the AUDUSD traded with a low of 0.8871 and a high of 0.8976 before closing the day at 0.8944 in the New York session

· Gold (XAU) was also choppy trading with a low of 896.55 and a high of 911.25

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4395	1.4440	1.4490	1.4672	1.4849
USD/JPY	104.97	105.71	107.35	107.83	107.89
GBP/USD	1.9338	1.9389	1.9440	1.9624	1.9723
AUD/USD	0.8819	0.8875	0.8955	0.9000	0.9102
XAU/USD	882.58	885.00	910.00	911.06	912.90

· Euro – 1.4440

Initial support at 1.4661 (Jan 25 low) followed by 1.4592 (Jan 24 low). Initial resistance is now located at 1.4799 (Jan 28 high) followed by 1.4859 (Jan 16 high).

· Yen – 107.35

Initial support is located at 106.01 (Jan 28 low) followed by 104.97 (Jan 23 low). Initial resistance is now at 107.89 (Jan 25 high) followed by 107.95 (Jan 16 high)

· Pound – 1.9440

Initial support at 1.9814 (Jan 29 low) followed by 1.9731 (Jan 28 low). Initial resistance is now at 1.9929 (Jan 29 high) followed by 2.0034 (38.2% retracement of 2.1161 to 1.9338 decline)

· Australian Dollar – 0.8955

Initial support a 0.8768 (Jan 28 low) followed by 0.8691 (Jan 24 low). Initial resistance is now at 0.8907 (Jan 29 high) followed by 0.9022 (Jan 15 reaction high)

· Gold – 910.00

Initial support at 908.10 (Jan 23 low) followed by 876.80 (Jan 23 high). Initial resistance is now at 933.30 (Jan 29 high) followed by 950.0 (Psychological round number)

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Daily Forex Update(Feb 7 2008)

FOREX Daily Outlook by Easy-Forex.com

Risk aversion back causing JPY appreciation

Global markets on the downside

Today:

EU ECB to hold rate and show future intentions

UK BoE to cut rate but maintain policy

CURRENCY TRADING SUMMARY – 07 February 2008 (05:30GMT)

· U.S. Dollar Trading (USD) consolidated against other currencies today due to uncertainty ahead of Central Banks Rate decisions. Recent services data showed once gain signs of US slowdown. Stocks fell on risk aversion. Market has fully priced in upcoming rate cuts by the FED. 50bps of additional monetary easing expected at the 18 March and 30 April FOMC meetings. Crude oil fell to US$ 87.00 as US supplies increased.

· The Euro (EUR) Recent poor data suggest that European Central Bank will be forced to trim its 2008 GDP growth forecast as early as March and eventually ease monetary policy this year. The EUR fell for another day against the dollar and the yen. Today, the European Central Bank is forecasted to leave rates at 4.00 percent, but there are concerns that deteriorating economic conditions may lead ECB Trichet to give dovish rhetoric. However, with inflation estimates showing CPI rocketing above the bank's 2.0 percent ceiling to 3.2 percent in January, a 14 year high, Trichet may be as hawkish as ever.

· The Sterling (GBP) also went through downside pressures on growing expectations that the BoE will cut rates by 25 basis points on Thursday, signaling that growth is increasingly replacing inflation as their biggest concern after manufacturing and consumer confidence data did not impress. An overall change to the robust BoE long-term policy though is likely ruled out.

· The Japanese Yen (JPY) appreciated broadly on risk aversion due to global markets’ growth concerns putting carry-trades into danger. BoJ may try to keep it from breaching 105 against USD to support exports. However, persisting risk aversion may send USDJPY lower in the medium-term.

· The Australian Dollar (AUD) likely to be well supported in the medium-term due to RBA’s hike of interest rates by 25bps to 7%, the highest level in 11 years, as concerns of inflation remain prominent, despite views of monetary easing surrounding several central banks. The Australian dollar fell however against the U.S. currency, erasing an earlier gain, on speculation traders reduced holdings of higher-yielding assets following a decline in U.S. stocks and ahead of key rate decisions today.

· Gold (XAU) holds steady above 900 level and is likely attractive for safe-haven diversification of investments from levels below 900.

TECHNICAL LEVELS - INTRADAY SHORT TERM*:

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4550	1.4590	1.4620	1.4670	1.4725
USD/JPY	106.00	106.20	106.50	106.80	107.15
GBP/USD	1.9528	1.9576	1.9590	1.9700	1.9725
AUD/USD	0.8877	0.8910	0.8925	0.9000	0.9030
XAU/USD	876.70	883.00	903.75	905.00	913.20

ADDITIONAL TECHNICAL COMMENTS*:

EURUSD:

Fibonacci 1.4588 support holding - move above 1.4784 resistance required to offset downside pressure

USDJPY:

Move beyond 107.89 required to define base at 104.97

GBPUSD:

Heavy below 1.9789 with the focus on 1.9500

USDCHF:

A break o f 1.0861 would offset upward pressure to 1.1112

AUDUSD:

Positive trend in palce while support at 0.8819 holds, key resistance is at 0.9102

*To receive additional exclusive technical analysis updates on majors, crosses & gold both intra-day and long-term, please contact your Account Service Manager for information on the Easy Forex Personal Dealer Service.

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Daily Forex Update(Feb 6 2008)

FOREX Daily Outlook by Easy-Forex.com

RBA hike rates, as US services industry declines at it fastest rates in 7 years.

CURRENCY TRADING SUMMARY – 06 FEBRUARY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was volatile largely on the back of a significant contraction in ISM services figures for the month of January, coming in at 41.9 lower than the forecasted 53, the lowest reading since Oct 2001, intensifying concerns of a recession in the US, pressuring the Fed to cut rates further. It must be noted that the services sector contributes 70 to 80 % of the U.S. economy. In U.S. share markets the NASDAQ was down 73.28 points (-3.08%), whilst the Dow Jones was also down by 370.03 points (-2.93%) Crude oil also fell on Tuesday by US$0.26 a barrel to US$88.15.

· The Euro (EUR) was subject to poor data in the form of PMI services, which was released at 50.6, lowest showing since July 2003, prompting many traders to expect European Central Bank will be forced to trim its 2008 GDP growth forecast as early as March and eventually ease monetary policy this year. Overall the EURUSD traded with a low of 1.4620 and a high of 1.4834 before closing the day at 1.4648 in the New York session.

· The Japanese Yen (JPY) rallied against a number of majors as concerns surrounding the US economic slow down. As Asian stock prices closed lower, a flow on effect was seen on major European and US equity markets, ensuring the Yen was relieved of much of its role as a low funding currency. Overall the USDJPY traded with a low of 106.60 and a high of 107.74 before closing the day at 106.73 in the New York session.

· The Sterling (GBP) also weakened on a sharp sell of against the JPY, and growing expectations that the BoE will cut rates by 25 basis points on Thursday. In other data news, the UK PMI were slightly higher than expectations, in at 52.5 (Forecast: 52.4). Overall the GBPUSD traded with a low of 1.9605 and a high of 1.9764 before closing the day 1.9637 in the New York session.

· The Australian Dollar (AUD) although expected, saw an extremely courageous move by the RBA, hiking interest rates by 25bps to 7%, the highest level in 11 years, as concerns of inflation remain prominent, despite views of monetary easing surrounding several central banks. RBA Governor Stevens noted the global economy is slowing but added domestic economic growth may be commodity-driven. Inflation remains above the RBA's target zone of 2% to 3%. Any further upside moves were limited by a broadly stronger USD, and falling equity markets. Overall the AUDUSD traded with a low of 0.8939 and high of 0.9090 before closing the day 0.8963 in the New York session.

· Gold (XAU) fell to the lowest in more than a week after the dollar rose against a number of majors, eroding the appeal of the precious metal as an alternative investment. XAU traded with a low of 886.10 and a high of 906.25

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.4592	1.4622	1.4640	1.4859	1.4956
USD/JPY	104.97	105.77	106.55	107.74	107.89
GBP/USD	1.9500	1.9576	1.9655	1.9763	1.9941
AUD/USD	0.8819	0.8942	0.8965	0.9102	0.9125
XAU/USD	882.58	885.00	888.80	907.10	912.90

· Euro – 1.4640

Initial support at 1.4661 (Jan 25 low) followed by 1.4592 (Jan 24 low). Initial resistance is now located at 1.4799 (Jan 28 high) followed by 1.4859 (Jan 16 high).

· Yen – 106.55

Initial support is located at 106.01 (Jan 28 low) followed by 104.97 (Jan 23 low). Initial resistance is now at 107.89 (Jan 25 high) followed by 107.95 (Jan 16 high)

· Pound – 1.9655

Initial support at 1.9814 (Jan 29 low) followed by 1.9731 (Jan 28 low). Initial resistance is now at 1.9929 (Jan 29 high) followed by 2.0034 (38.2% retracement of 2.1161 to 1.9338 decline)

· Australian Dollar – 0.8965

Initial support a 0.8768 (Jan 28 low) followed by 0.8691 (Jan 24 low). Initial resistance is now at 0.8907 (Jan 29 high) followed by 0.9022 (Jan 15 reaction high)

· Gold – 888.80

Initial support at 908.10 (Jan 23 low) followed by 876.80 (Jan 23 high). Initial resistance is now at 933.30 (Jan 29 high) followed by 950.0 (Psychological round number)

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Daily Forex Update(Feb 5 2008)

FOREX Daily Outlook by Easy-Forex.com

Reserve Bank of Australia hikes rate by 25 bps as expected and signals further close monitoring of inflation. AUD stays attractive for yield seekers.

CURRENCY TRADING SUMMARY – TUE 05 FEBRUARY 2008 (06:00 GMT)

· U.S. Dollar Trading (USD) was subject to a calmer session. Although still pressured against a number of majors due to an unexpected contraction in the Non Farm Payrolls for December by -17 k jobs (Forecast +63K), the market heavily considers whether the FED has actually taken and promised satisfactory steps to handle the current mild recessional economic environment. Traders expect further rate cut from the Federal Reserve in the next meeting. Nonetheless, any further losses to the USD may be limited and USD appreciation due to market recovery can not be excluded. There seem to be heavy interests in selling the EUR at its rallies as long as the EU ECB doesn’t assure it has inflation and growth fully under control. Equity markets fell slightly on MON as a corrective move to FRI gains.

· The Euro (EUR) remained fairly range bound and solid above the 1.48 from where the market will probably start pricing in the ECB rate decision coming on THU. EU equity markets remained steady in small positive. The market saw a little changed PPI reading which did not affect the rate much. Today we expect EU PMI little changed from previous and improved numbers in EU Retails sales

· The Japanese Yen (JPY) once again tracked equity markets, with a rally in Asian stock prices pressuring the JPY during early hours MON, and a consequent Asian markets correction tonight giving the JPY strong support; an overall cycle in carry-trading. The USDJPY traded with a low of approx. 106.58 and a high of 107.10.

· The Sterling (GBP) rose the most against the dollar in more than a week and climbed versus the EUR as a rally in European and Asian stocks spurred demand for higher- yielding currencies. Today’s House price index may re-confirm a slowing housing market and hence raise expectations for a rate cut to take place on THU. Overall, the GBP climbed against the USD from the lowest in two weeks, rising to $1.9761 by 4:20 p.m. in London, from $1.9651 at the end of last week. The U.K. currency gained to 75 pence per EUR, from 75.31 pence.

· The Australian Dollar (AUD) was initially sold off slightly up to of the well expected rate hike by RBA, but RBA comments signaling a next future hike gave it a boost up to 0.9090 levels from which it retreated to support of 0.9060.

· Gold (XAU) continued its step-wise sell-off but recovered from 890 levels finally slightly above the 900 level, as FED rate cuts add confidence to the market that the credit crisis gets under control. Oil also remained below the 90 level although Turkey’s military attacks in Kurdish areas of northern Iraq raised expectations of a price rise.

TECHNICAL COMMENTARY

· Euro – 1.4820

Initial support is at 1.4810 followed by 1.4785. Resistance is located at 1.4898 followed by 1.4925

· Yen – 106.80

Initial support is at 106.65 followed by 106.35. Initial resistance is at 107.05 followed by 107.45

· Pound – 1.9720

Initial support is at 1.9655 followed by 1.9630. Initial resistance is at 1.9785 followed by 1.9820

· Australian Dollar – 0.9075

Initial support is at 0.9035 followed by 0.9005. Initial resistance is currently at 0.9090 followed by 0.9140

· Gold – 901.50

Initial support is at 899 followed by 890. Initial resistance is at 906 followed by 917

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Daily Forex Update(Feb 4 2008)

FOREX Daily Outlook by Easy-Forex.com

Non Farm Payrolls contract by -17k jobs, although stock prices rally

CURRENCY TRADING SUMMARY – 04 FEBRUARY 2008 (06:30GMT)

· U.S. Dollar Trading (USD) was subject to a volatile session, pressured against a number of majors due to an unexpected contraction in the Non Farm Payrolls for December by -17 k jobs (Forecast +63K), adding further concerns in anticipation of a US recession. The data confirmed the first decline in 4 years, as an upward revision from 18K to 81k in the month of December did little to ease the concerns. The data has prompted traders to expect further rate cuts from the Federal Reserve in the next meeting. Nonetheless, any further losses to the USD were limited as equity markets rose on Friday, boosted by reports of a takeover bid by Microsoft for Yahoo. In U.S share markets the NASDAQ was up 23.50 points (+0.98%) whilst the Dow Jones was also up by 92.83 points (+0.73%). Crude oil was also higher by the end of the New York session, gaining by US$0.34 a barrel to US$89.30. In other news, the Manufacturing ISM index rose to 50.7, above expectations of 47.3.

· The Euro (EUR) surged on the back of the poor jobs data out of the US on Friday, testing a record high, before any further gains were limited on profit taking. Furthermore, the EURO failed to sustain it gains as rallying US stocks, revived the greenback. Overall the EURUSD traded with a low of 1.4785 and a high of 1.4952 before closing the day at 1.4798 in the New York session. Euro zone PPI figures are scheduled for release on Monday with forecasts lying at 0.1% (Previous: 0.8%)

· The Japanese Yen (JPY) once again tracked equity markets, with a late rally in US stock prices a cause for a pressured Yen. Overall the USDJPY traded with a low of 105.74 and a high of 106.73 before closing the day at 106.61 in the New York session.

· The Sterling (GBP) saw a disappointing reading in Manufacturing PMI coming in at 50.6, down on the forecasted 52.5, hitting record lows for output, adding to further expectations the BoE will cut its interest rate later this week. Overall the GBPUSD traded with a low of 1.9646 and a high of 1.9942 before closing the day 1.9650 in the New York session. Services PMI will be made public today with forecasts lying at 52.0 (Prior: 52.4)

· The Australian Dollar (AUD) was the best performing major on Friday buoyed by poor US jobs data and growing expectations that the RBA would move to increase interest rates on Tuesday the 5^th of February, by 25 bps. Overall the AUDUSD traded with a low 0.8944 and a high of 0.9047 before closing the day at 0.9039 in the New York session. Trade Balance on Monday narrowed for the second consecutive month to -1963 mln, from a revised previous figure of -2162 mln.

· Gold (XAU) was worst affected from rebounding prices, XAU traded with a low 904.70 and a high of 936.50, before ending the session at 910.00

TECHNICAL COMMENTARY

· Euro – 1.4815

Initial support at 1.4755 (Jan 30 low) followed by 1.4661 (38.2% retracement of the 1.4366 to 1.4953 advance). Resistance is now located at 1.4880 (intraday pivot point) followed by 1.49668 (Nov 23.2007 trend high).

· Yen – 106.80

Initial support is located at 105.77 (Feb 1 low) followed by 104.97 (Jan 23 low). Initial resistance is now at 106.87 (Jan 31 high) followed by 107.47 (Jan 30 high)

· Pound – 1.9665

Initial support at 1.9576 (61.8% retracement of the 1.9338 to 1.9660 advance) followed by 1.9500 (Jan 24 low). Initial resistance is now at 1.9941 (Feb 1 high) followed by 2.0034 (Jan 30 low)

· Australian Dollar – 0.9045

Initial support a 0.8944 (Feb 1 low) followed by 0.8944 (Jan 31 low). Initial resistance is now at 0.9051 (Feb 1 low) followed by