Daily Forex Update(May 1 2008)

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FOREX Daily Outlook by Easy-Forex.com

Fed cuts rates by 25bps, but leaves door open for more rate cuts if needed. GDP comes in better than expected.

CURRENCY TRADING SUMMARY – 1 MAY 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was weaker on Wednesday after the Fed yet again cut rates by 0.25% to 2.00% for the seventh time since September last year. The votes counted 8-2 in favour of the cut, with only Fisher and Plosser preferring no change. The accompanying statement which was widely expected to suggest the Fed would ease its rate cutting for now, only hinted at the Fed’s future course of action by suggesting “indicators of inflation expectations have risen in recent months.” The market took these sorts of comments as affirmation that the Fed is near a pause in rate cutting but is leaving the door open to further rate cuts should the economy need the relief. US GDP for Q1 grew by 0.6%, surpassing forecasts of a 0.2% growth, suggesting the economy is still grinding ahead despite the plaguing financial turmoil. In other data news, the ADP Employment report for April improved from 8k in March to 10k, far outstripping expectations of a fall to -60k. Chicago PMI for April increased to 48.3, beating forecasts of a decline from 48.2 in March to 47.5. Core PCE for Q1 came in slightly above expectations of 2.1% to 2.2%, but this was a drop from 2.5% for Q4. In share market news, the Dow Jones fell by 12 points (-0.1%), while the NASDAQ lost 13 points (-0.6%). Oil prices fell US$2.17 a barrel to US$113.46. Looking ahead, more key data comes out on Thursday with the Manufacturing ISM report for April with forecasts of a drop from 48.6 to 47.5. Jobless claims are also released on Thursday with expectations of a rise from 342k to 365k.

· The Euro (EURO) appreciated against the greenback on Wednesday as the Federal Reserve cut rates by 25bps to 2.00%, its lowest level in almost four years. In data news Euro Zone Consumer Sentiment came in slightly better than forecast with a level of -12. Euro Business climate for April came in below forecasts of 0.7, with a level of 0.44. The Euro Unemployment rate for March came in as forecast at 7.1%. Euro’s Economic sentiment for April also came in below the forecasted level of 99 seeing a result of 97.1, indicating the economic outlook is waning. The EURUSD traded at a high of 1.5644 and a low of 1.5517 before closing at 1.5633 in New York. Thursday is a market holiday throughout the Euro so no data will be released.

· The Japanese Yen (JPY) strengthened slightly on Wednesday following a softer dollar after the Fed cut rates to 2.00%. The BoJ yesterday maintained their current rate stance at 0.5% as expected, keeping it as the lowest rate amongst the major economies. The USDJPY traded at a high of 104.89 and a low 103.70, before closing at 103.94 in New York. No major data is being released from Japan on Thursday.

· The Sterling (GBP) traded on the back of the majors on Wednesday as no data was released in the UK. The GBPUSD traded at a high of 1.9895 and a low of 1.9624, before closing at 1.9879 in New York trading. Looking ahead, PMI Manufacturing for the month of April is announced on Thursday with forecasts of 50.9, slightly down from 51.3 for March.

· The Australian Dollar (AUD) was among the best performing majors on Wednesday as the rate cut in the U.S prompted investors to look towards the higher yielding currencies like the Aussie and Kiwi dollars. The AUDUSD traded at a low of 0.9312 and a high of 0.9471, before closing at 0.9463 in New York trading. Looking ahead, Friday sees the release of March’s Retail Sales figures with expectations of a decline to -0.3%, down on February’s result of -0.1%.

· Gold (XAU) prices dropped on Wednesday despite a weaker dollar, with reasons being the appeal of the precious metal as an inflation hedge diminished as oil prices fell. Prices fell by US$11.70 an ounce to US$865.10, before gathering support to close near US$871.00.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5408	1.5510	1.5635	1.5661	1.5707
USD/JPY	101.86	102.68	103.70	104.37	104.82
GBP/USD	1.9600	1.9668	1.9865	1.9913	1.9966
AUD/USD	0.9272	0.9292	0.9435	0.9422	0.9496
XAU/USD	873.00	869.97	880.00	906.50	922.86

· Euro – 1.5635

Initial support at 1.5510 (Apr 3 reaction low) followed by 1.5408 (Mar 25 Low). Initial resistance is now located at 1.561 (Apr 29 high) followed by 1.5707 (Apr 25 high).

· Yen – 103.70

Initial support is located at 103.70 (Apr 22 low) followed by 102.68 (Apr 22 low). Initial resistance is now at 104.88 (Apr 30 high) followed by 105.58 (76.4% retracement of the 108.61 to 95.76 decline).

· Pound – 1.9865

Initial support at 1.9624 (Apr 30 low) followed by 1.9600 (Apr 16 reaction low). Initial resistance is now at 1.9913 (Apr 29 high) followed by 1.9966 (Apr 28 high).

· Australian Dollar – 0.9435

Initial support a 0.9311 (Apr 30 low) followed by 0.9294 (Apr 29 low). Initial resistance is now at 0.9473 (Apr 30 high) followed by 0.9496 (Apr 24 high).

· Gold – 880.00

Initial support at 862.82 (Apr 30 low) followed by 873.00 (Apr 1 reaction low). Initial resistance is now at 896.50 (Apr 25 high) followed by 906.50 (Apr 24 high).

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

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Daily Forex Update(April 28 2008)

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FOREX Daily Outlook by Easy-Forex.com

US Dollar strengthens yet again despite poor consumer sentiment.

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

· U.S. Dollar Trading (USD) strengthened yet again on Friday due to U.S business profit results surpassing expectations. This surge against the majors came despite U.S consumer sentiment falling in April to 26-year lows. Revised data showed that the sentiment index fell from 69.5 to 62.6, down from the initial April reading of 63.2. The US dollar rose against the majors on Friday on the belief that the Federal Reserve is nearing the end of its easing cycle. In share market news of the 263 firms in the S&P 500 index that have reported first quarter profits, 73% have matched or beaten market expectations. This result really helped drive the U.S dollar on Friday. The Dow Jones rose 42 points (0.3%), whilst the NASDAQ lost 6 points (-0.25%). Oil prices climbed 2% on Friday on supply disruptions in Nigeria and the North Sea and renewed tensions between the U.S and Iran. Prices increased US$2.46 a barrel to US$118.52. Looking ahead, Q2 borrowing announcement will be released on Monday.

· The Euro (EURO) fell to a three-week low versus the dollar on the release of an ECB report showing money supply growth slowed more than economists forecast in March. The news added to the Euro’s woes from earlier last week, with weak data on Euro zone manufacturing and German business sentiment. Euro zone data is sharply contrasting with better than expected US company earnings reports and dampening expectations for U.S interest rate cuts. The EURUSD traded at a high of 1.5707 and a low of 1.5555, before closing at 1.5605 in New York trading. Looking ahead, German Consumer Confidence for the month of April is to be released on Monday with a level of 4.4 forecasted, following on from 4.6 for the month of March. On Tuesday German CPI for April is out with expectations of no change from March’s 3.1% level.

· The Japanese Yen (JPY) appreciated versus the Euro today but hit a two-month low versus the U.S dollar after a government report showed Japan’s core consumer prices increased 1.2% in March from a year earlier, the most in a decade. There is now room for speculation the BoJ may increase rates from 0.5% at some point later in the year. The USDJPY traded at a high of 104.82 and a low of 103.90, before closing at 104.46 in New York. Looking ahead, Japanese Unemployment for March is to be announced on Tuesday, with forecasts of no change from their current levels of 3.9%.

· The Sterling (GBP) climbed to a three-week high against the Euro along with steadying against the U.S dollar. This was predominantly driven by increasing concerns about the health of the Euro Zone economy and key trading technical levels. Data released from the UK on Friday saw a GDP level as expected at 0.4% for Q1, down from 0.6% for Q4. Whilst year-on-year GDP came in slightly below forecasts of 2.6% at 2.5%, down from 2.8% previously. The GBPUSD traded at a high of 1.9889 and a low of 1.9679 before closing at 1.9821 in New York. Looking ahead, Nationwide House Prices for April is to be released on Monday with expectations of -0.7%, down from -0.6% for March.

· The Australian Dollar (AUD) softened against the dollar as strong profit results really drove the U.S strength on Friday, combined with an ever-increasing belief the Fed is near the end of its easing of monetary policy. The AUDUSD traded at a high of 0.9420 and a low of 0.9291, before closing at 0.9319 in New York. Looking ahead, Australia’s Trade Balance for March is released on Monday, with expectations of a surplus of $400m, up from $258m in February. On Tuesday, the NAB Business Confidence level for Q1 is to be announced following a previous level of 6.

· Gold (XAU) prices rose on Friday, shaking a two-day slump, following rising energy prices making the appeal of gold more attractive as an inflation hedge. Prices reached a high of $896.50, before US strength saw gold pair its gains to end up US30c an ounce to US$889.70.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5510	1.5556	1.5620	1.5707	1.5891
USD/JPY	103.32	103.90	104.60	104.82	105.58
GBP/USD	1.9600	1.9677	1.9825	1.9974	1.9999
AUD/USD	0.9249	0.9272	0.9350	0.9422	0.9496
XAU/USD	873.00	878.30	890.90	906.50	922.86

· Euro – 1.5620

Initial support at 1.5556 (Apr 25 low) followed by 1.5510 (Apr 3 reaction Low). Initial resistance is now located at 1.5707 (Apr 25 high) followed by 1.5891 (Apr 24 high).

· Yen – 104.60

Initial support is located at 103.90 (Apr 25 low) followed by 103.32 (Apr 24 low). Initial resistance is now at 104.82 (Apr 25 high) followed by 105.58 (76.4% retracement of the 108.61 to 95.76 decline).

· Pound – 1.9825

Initial support at 1.9677 (Apr 25 low) followed by 1.9600 (Apr 16 low). Initial resistance is now at 1.9974 (Apr 23 high) followed by 1.9999 (50% retracement of the 2.0398 to 1.9600 decline).

· Australian Dollar – 0.9350

Initial support a 0.9272 (Apr 18 low) followed by 0.9249 (A50% retracement of the 0.8953 to 0.9544 advance). Initial resistance is now at 0.9422 (Apr 25 high) followed by 0.9496 (Apr 24 high).

· Gold – 890.90

Initial support at 878.30 (Apr 25 low) followed by 873.00 (Apr 1 reaction low). Initial resistance is now at 906.50 (Apr 24 high) followed by 922.86 (Apr 23 high).

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

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Daily Forex Update(April 25 2008)

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FOREX Daily Outlook by Easy-Forex.com

US Dollar surges on back of positive data and growing speculation of Fed holding rates.

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

· U.S. Dollar Trading (USD) surged against the Euro on Thursday, the most it has risen against the Euro since December, as traders add to bets the Fed will cease their rate cutting stance to stimulate economic growth and ease the liquidity problems as affects from their previous rate cuts are now starting to be seen. Orders for U.S Durable Goods excluding transportation equipment increased more than forecast in March, indicating parts of the economy are weathering the housing slump. Jobless Claims came in ahead of the forecasted 375k, with 342k reported this week an improvement on last week’s 375k. New Homes for March came in at 526k, slightly down on the predicted 580k and down on the 575k for the month of February, indicating the housing sector in the U.S is still struggling with the credit squeeze. Chicago Board of Trade (CBOT) now shows a 22% chance the Fed will hold the target lending rate at 2.25%, compared with no chance last week. In share market news, the Dow Jones rose 86 points (0.7%) to 12,848.95, whilst the NASDAQ rose 24 points (1.0%) to 2,428.92. Oil eased to US$116.00 a barrel as greenback strength moderated some of the recent gains made on oil. Looking ahead, the Michigan Final is due out on Friday with a change expected from 69.5% down to 63.2%.

· The Euro (EURO) took a dive yesterday as the dollar strengthened on the back of growing speculation the Fed will leave rates on hold at 2.25% combined with declining business confidence in Germany and France with the IFO Business Index for April coming in at 102.4, down on the forecasted 104.3 and March’s 104.8. The Euro’s Current Account for February saw a surplus of $5bn compared to a deficit of -$19.1bn in January. Whilst this figure on face value is positive it could actually signal weakening demand throughout the Euro Zone leading to less imports, rather than growing exports. The weakening Euro was explained by Carl Forcheski from Societe Generale SA, “There’s a growing feeling of caution among investors about buying the Euro as there is a growing sentiment that the Fed will stop cutting rates for a while after this month.” The EURUSD traded at a high of 1.5896 and a low of 1.5638, before closing at 1.5681 in New York trading.

· The Japanese Yen (JPY) lost 1% against the greenback to 104.39 on Thursday as positive data coming out from the U.S along with stronger equities saw the yen lose ground. Japanese CPI for the month of March came in as forecasted at 1.2%, compared to 1.0% for February. The USDJPY traded at a high of 104.36 and a low of 103.33, before closing at 103.57 in New York.

· The Sterling (GBP) rose the most against the Euro in more than a week after a government report today showed UK retail sales grew faster than forecast on a y/y basis, reducing the scope for further interest rate cuts. Gains in sales of 4.6% in March exceeded the 4.3% forecast. The pound did decline against the dollar as positive U.S data and growing speculation the Fed will leave rates on hold at 2.25% fuelled the resurgence. The GBPUSD traded at a high of 1.9815 and a low of 1.9688, before closing at 1.9746 in New York. Looking ahead, Q1 GDP is due out on Friday with forecasts of 0.4% growth compared to 0.6% growth for Q4. GDP y/y is forecast to be trimmed to 2.6% after a previous figure of 2.8%.

· The Australian Dollar (AUD) paired its recent gains against the dollar as U.S strength and weak commodity prices led to the decline. The Aussie has dropped 2% since reaching a 24-year high of 0.9541 in Wednesday’s trading. A contributing factor to this is the mounting speculation the RBA is unlikely to hike rates given the recent growing CPI figures for Australia. The AUDUSD traded at a high of 0.9483 and a low of 0.9375 before closing at 0.9401 in New York. The Australian and New Zealand market is closed on Friday as it is the Anzac Day public holiday.

· Gold (XAU) fell to a 3 week low, breaking through the key 903 support level as U.S dollar strength signaled the downfall. Gold lost US$20.50 an ounce to US$888.50.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5510	1.5638	1.5685	1.5896	1.6019
USD/JPY	102.68	103.32	104.35	104.55	104.65
GBP/USD	1.9600	1.9687	1.9735	1.9816	1.9974
AUD/USD	0.9318	0.9374	0.9390	0.9496	0.9544
XAU/USD	873.00	882.00	885.50	906.78	922.86

· Euro – 1.5685

Initial support at 1.5638 (Apr 24 low) followed by 1.5510 (Apr 3 reaction Low). Initial resistance is now located at 1.5896 (Apr 24 high) followed by 1.6019 (Apr 22 trend high).

· Yen – 104.35

Initial support is located at 103.32 (Apr 24 low) followed by 102.68 (Apr 22 low). Initial resistance is now at 104.55 (Apr 24 high) followed by 104.65 (Apr 18 high).

· Pound – 1.9735

Initial support at 1.9687 (Apr 24 low) followed by 1.9600 (Apr 16 low). Initial resistance is now at 1.9816 (Apr 24 high) followed by 1.9974 (Apr 23 high).

· Australian Dollar – 0.9390

Initial support a 0.9374 (Apr 24 low) followed by 0.9318 (Apr 21 low). Initial resistance is now at 0.9496 (Apr 24 high) followed by 0.9544 (Apr 23 high).

· Gold – 885.50

Initial support at 882.00 (Apr 2 low) followed by 873.00 (Apr 1 reaction low). Initial resistance is now at 906.78 (Apr 24 high) followed by 926.86 (Apr 23 high).

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

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Daily Forex Update(April 24 2008)

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FOREX Daily Outlook by Easy-Forex.com

Aussie reaches 24-year high, following higher than forecast CPI. USD recovers following weak Euro data.

CURRENCY TRADING SUMMARY – 24 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) strengthened against the bulk of the majors on Wednesday as poor economic data coming out of the Euro Zone and slightly more dovish comments from ECB officials pushed the greenback higher, causing a flow on effect against other currencies. The U.S dollar gained further ground after Luxembourg’s Finance Minister Jean-Claude Juncker expressed concern over the pace of the greenback’s decline suggesting it wll hurt Euro economic growth. U.S stocks gained on Wednesday following a number of companies bettering expected earnings. This saw the Dow Jones rise by 43 points (0.3%) and the NASDAQ increase 28 points (1.2%). Oil prices remained strong, seeing only marginal gains as a weekly U.S inventory report showed an increase in stock by 2.4 million barrels. As a result, prices only rose US23c a barrel to US$118.30. Looking ahead, weekly Jobless Claims is to be released on Thursday with forecasts of little change from last week’s 372k. Also out on Thursday is Durable Goods Orders for March, with a forecast of -0.5% compared to -1.1% for February. New Home Sales for March is also out on Thursday with expectations of 585k, compared to 590k for February.

· The Euro (EURO) retreated on Wednesday as poorer than predicted economic data released out of the Euro Zone saw PMI Manufacturing Index drop to 50.8 in April, its lowest level in nearly three years. Whilst this still represents an expansion in the industry, it came in lower than the forecasted 51.7. ECB Governing Council member Noyer virtually did a back flip from yesterday’s hawkish outlook for the Euro Zone, stating he would never engage in a discussion about the future path of interest rates, simply because nobody knows and it would be dangerous to make predictions in either direction. These comments combined with the soft economic data results perhaps limit the Euro’s upside potential going forward. The EURUSD traded at a high of 1.6000 and a low of 1.5860, before closing at 1.5892 in New York. Looking ahead, February’s Current Account is to be released on Thursday following January’s deficit of -$19.1bn. Investment flow for February is also to be released on Thursday with January’s results indicating a flow of $22.1bn.

· The Japanese Yen (JPY) weakened against the greenback as risk appetite saw the return to carry trades. The market continued its focus on the high yielding currencies like the Aussie and Kiwi, pushing the yen lower. The USDJPY traded at a high of 103.79 and a low of 102.75, before closing at 103.47. Looking ahead, core CPI is to be released on Friday with forecasts predicting an increase from 1% in March to 1.2%.

· The Sterling (GBP) strengthened against the dollar after the BoE minutes showed two votes against easing policy this month. However, gains were short-lived as the news did not change expectations of another rate cut in June by the BoE. Furthermore, BoE policymaker, Andrew Sentence commented on the weakness of the pound and its undesirable impact on oil and commodity prices, adding to the inflationary pressures being felt by the British economy and highlighted reservations about easing interest rates too quickly. The GBPUSD traded at a high of 1.9970 and a low of 1.9776 before closing at 1.9795 in the New York session.

· The Australian Dollar (AUD) had a historic day on Wednesday as it broke through the US95c mark for the first time in 24 years as a strong CPI figure of 1.3% m/m and 4.2% y/y for Q1 fuelled the surge. However, this rise lost steam as the USD gained on the back of weak Euro economic data, which saw the Aussie fall back below US95c.The AUDUSD traded at a high of 0.9541 and a low of 0.9447, before closing at 0.9495 in New York. No data is to be released out of Australia leading into the Anzac Day public holiday on friday whereby the local markets will be closed. This holiday also extends to New Zealand.

· Gold (XAU) softened owing to weaker commodity prices and a stronger dollar. Prices fell US$16.20 an ounce to US$909.00.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5712	1.5835	1.5880	1.6019	1.6022
USD/JPY	102.06	102.68	103.45	104.07	104.65
GBP/USD	1.9692	1.9747	1.9790	1.9974	2.0027
AUD/USD	0.9391	0.9450	0.9480	0.9544	0.9657
XAU/USD	873.00	903.40	904.60	946.80	953.00

· Euro – 1.5880

Initial support at 1.5835 (Apr 22 low) followed by 1.5712 (Apr 18 Low). Initial resistance is now located at 1.6019 (Apr 22 high) followed by 1.6022 (Open this week + range last week).

· Yen – 103.45

Initial support is located at 102.68 (Apr 22 low) followed by 102.06 (Apr 18 low). Initial resistance is now at 104.07 (Apr 21 high) followed by 104.65 (Apr 18 high).

· Pound – 1.9790

Initial support at 1.9747 (Apr 22 low) followed by 1.9692 (Apr 17 low). Initial resistance is now at 1.9974 (Apr 23 high) followed by 2.0027 (Apr 21 high).

· Australian Dollar – 0.9480

Initial support a 0.9450 (Apr 23 low) followed by 0.9391 (Apr 22 low). Initial resistance is now at 0.9544 (Apr 23 high) followed by 0.9657 (Open this week + range last week 1.618).

· Gold – 904.60

Initial support at 903.40 (Apr 9 low) followed by 873.00 (Apr 1 reaction low). Initial resistance is now at 946.80 (Apr 18 high) followed by 953.00 (Apr 17 high).

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

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Daily Forex Update(April 22 2008)

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FOREX Daily Outlook by Easy-Forex.com

Bank of England announces plan to increase liquidity. US dollar weakens as sentiment dampens.

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

· U.S. Dollar Trading (USD) was softer against the other majors other than sterling despite no significant data being released, leaving the market to find its own direction based on sentiment. US Fed officials Kroszner and Evans both spoke on Monday, avoiding the topic of monetary policy in their comments. Kroszner touched on transparency in lending standards and standardization aiding the sub-prime mortgage market, but suggested the financial markets remained “bogged down by unease.” Troubled news continues to flow from the financial sector as the second largest U.S bank, Bank of America Corp., reported a 77% drop in Q1 profit brought about by US$6bn of credit write-downs. Speculation has mounted that Citigroup may cut its dividend again following on from billion dollar write-downs. Chicago Board of Trade (CBOT) has cut its predictions of a 50bps rate cut when the Fed meets at the end of the month, however believes there is a 92% chance of a 25bps rate cut. In share market news, Bank of America’s shares fell 2.5%, whilst National City Bank’s shares fell 27%. As a result, the Dow Jones stalled 24 points (-0.2%), whilst the NASDAQ gained 5 points (0.2%). Oil prices hit fresh record highs as Nigerian supply concerns remain high, rising US79c a barrel to US$117.48. Looking ahead, Existing Home Sales for the month of March and the Housing Price Index for the month of February will be released on Tuesday with forecasts of a decline in Home Sales to 4.92 million compared to 5.03 for the month of February. The Fed Manufacturing Index for April will also be released on Tuesday following an index of 6.0 for March.

· The Euro (EURO) rallied to within a cent of a record high against the dollar as ECB officials reiterated the concern of an accelerating inflation on the Euro, increasing the chances interest rates will stay at six-year high for some time yet. The Euro gained momentum after policy maker Liebscher stated that record oil prices are beginning to push up wage demands and maintain a high inflation level. The EURUSD traded at a high of 1.5946 and a low of 1.5793 before closing at 1.5927 in New York. Looking ahead, the focus is on Wednesday’s data releases with German and Euro PMI Manufacturing figures for the month of April with forecasts of 54.8 for Germany and 51.5 for the Euro Zone, after March saw a level of 55.1 in Germany and 52.0 for the Euro Zone. PMI Services is also to be released on Wednesday with expectations of a similar level to March’s figure of 51.6.

· The Japanese Yen (JPY) strengthened on Monday as weaker U.S equity profit results dampened investors’ initial optimism that companies may escape the global credit crisis relatively unharmed. The USDJPY traded at a high of 104.06 and a low of 103.00 before closing out at 103.18 in New York. Japan’s Trade Balance for the month of March is to be released on Tuesday with expectations of the deficit growing to US$1400bn compared to US$970bn for February.

· The Sterling (GBP) fell against the majors as the BoE confirmed speculation by announcing a plan to relieve the liquidity problems in the UK financial network by accepting at least 50 billion pounds of mortgage-backed securities in exchange for UK Treasury bills to lower credit costs and help revive lending by banks. British Finance minister Darling further commented the plan will help resolve the problems in the wholesale financial markets. He went on to suggest, “We expect the BoE to undertake gradual easing in the coming quarters, bringing the Bank Rate to 4.5% by year end.” UK house prices were down 0.1% in April. The GBPUSD traded at a high of 2.0026 and a low of 1.9778, before closing at 1.9812 in New York.

· The Australian Dollar (AUD) powered through US94c as Core PPI easily surpassed forecasts rising 1.9% m/m and 4.8% y/y for Q1 compared to expectations of 1.0% m/m and 3.9% y/y. This highlights the remaining inflationary concerns facing the RBA, with all eyes focused on the CPI Q1 figure to be announced on Wednesday with forecasts of 1.1% q/q. The AUDUSD traded at a low of 0.9330 and a high of 0.9443, before closing at 0.9443 in New York.

· The Canadian Dollar (CAD) is expected to move on Tuesday as the BoC has a rate announcement scheduled. Forecasts suggest the BoC will slash rates by up to 50bps from 3.5% to 3.0%.

· Gold (XAU) prices gained only slightly on Monday following a weaker dollar, rising by US$2.40 an ounce to close at US$917.60.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5659	1.5712	1.5915	1.5958	1.5983
USD/JPY	101.71	102.26	103.20	104.65	105.58
GBP/USD	1.9692	1.9777	1.9820	2.0027	2.0048
AUD/USD	0.9250	0.9272	0.9440	0.9445	0.9473
XAU/USD	873.00	903.40	916.00	946.80	953.00

· Euro – 1.5915

Initial support at 1.5712 (Apr 18 low) followed by 1.5659 (Apr 14 Low). Initial resistance is now located at 1.5958 (Apr 18 high) followed by 1.5983 (Apr 17 trend).

· Yen – 103.20

Initial support is located at 102.26 (Apr 18 low) followed by 101.71 (Apr 17 low). Initial resistance is now at 104.65 (Apr 18 high) followed by 105.58 (76.4% retracement of the 108.61 to 95.76).

· Pound – 1.9820

Initial support at 1.9777 (Apr 21 low) followed by 1.9692 (Apr 17 low). Initial resistance is now at 2.0027 (Apr 21 high) followed by 2.0048 (Apr 4 high).

· Australian Dollar – 0.9440

Initial support a 0.9272 (Apr 18 high) followed by 0.9250 (Apr 16 low). Initial resistance is now at 0.9445 (Apr 21 high) followed by 0.9473 (Mar 13 high).

· Gold – 916.00

Initial support at 903.40 (Apr 9 low) followed by 873.00 (Apr 1 reaction low). Initial resistance is now at 946.80 (Apr 18 high) followed by 953.00 (Apr 17 high).

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

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Daily Forex Update(April 14 2008)

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FOREX Daily Outlook by Easy-Forex.com

G7 Meeting voices concerns over recent currency volatility.

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

· U.S. Dollar Trading (USD) strengthened on the back of indications the G7 summit was concerned over recent market volatility, “Since our last meeting, there have been at times sharp fluctuations in major currencies and we are concerned about their possible implications for economic and financial stability.” The G7 statement also suggested that “exchange rates should reflect economic fundamentals,” indicating the G7 is concerned about currency levels. The news coming from G7 is positive for the dollar, whilst it doesn’t indication direct action, it does signal the next move towards coordinated foreign exchange intervention. U.S data news released on Friday had little impact in comparison to the G7 commentary as the Michigan Sentiment report fell 6.3 points to a 26-year low of 63.2 in April. Within this, inflation expectations continue to grow raising concerns over the Fed’s current use of monetary policy to promote financial stability without concern over inflation. In share market news the NASDAQ lost 61.46 points (-2.68%) to 2,290.24, whilst the Dow Jones fell 256.56 points (-2.08%) to 12,325.42 points. Oil prices fell US$0.42 (0.38%) to US$109.72. Looking ahead, Retail Sales figures for the month of March are due out on Tuesday with forecasts predicting a growth of 0.1%, up from -0.6% for the month of February.

· The Euro (EURO) fell against the greenback after commentary released form the G7 indicated foreign exchange concerns were gathering momentum fuelling speculation coordinated intervention may occur at some stage. The Euro traded at a high of 1.5855 prior to dipping to 1.5740, before closing at 1.5832 in New York. Looking ahead, Industrial Production results are to be released on Monday.

· The Japanese Yen (JPY) dropped against the dollar following the G7 statement supporting the notion to promote U.S currency strength. The USDJPY traded at a high of 102.28, and a low of 100.65, before closing at 100.82. The BoJ minutes from their recent meeting last week is to be released on Monday.

· The Sterling (GBP) continued its recent slide as concerns remain over possible spill-over effects from the deteriorating credit markets in the U.S. Following the BoE’s recent rate cut last week, traders have added to bets that we are likely to see up to four more rate cuts throughout the course of 2008, spelling a weaker currency. The GBPUSD traded at a high of 1.9767, and a low of 1.9685, before closing at 1.9717 in New York. Looking ahead, PPI Core Output data for the month of March is to be released on Monday with forecasts of a growth of 0.4%, up from 0.2% for February.

· The Australian Dollar (AUD) dropped against the dollar, as investors’ appetite for risk averse currencies grew. The AUDUSD traded at a high of 0.9347 and a low of 0.9275, before closing at 0.9293 in the New York session. A quiet week of data releases is expected for Australia.

· Gold (XAU) prices eased on Friday as a stronger greenback prevented strong investment in the commodity. XAUUSD traded at a high of 932.10 and a low of 918.00.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5684	1.5726	1.5725	1.5914	1.6000
USD/JPY	99.36	100.03	101.10	102.28	102.84
GBP/USD	1.9607	1.9651	1.9710	1.9843	1.9928
AUD/USD	0.9177	0.9243	0.9235	0.9354	0.9473
XAU/USD	900.50	903.40	917.90	940.60	954.98

· Euro – 1.5725

Initial support at 1.5726 (Apr 10 low) followed by 1.5684 (Apr 9 Low). Initial resistance is now located at 1.5914 (Apr 10 high) followed by 1.600 (psychological resistance).

· Yen – 101.10

Initial support is located at 100.03 (Apr 10 low) followed by 99.36 (50% retracement of the 95.76 to 102.95 advance). Initial resistance is now at 102.28 (Apr 11 high) followed by 102.84 (Apr 10 high).

· Pound – 1.9710

Initial support at 1.9651 (Apr 9 low) followed by 1.9607 (76.4% retracement of 1.9363-2.0398). Initial resistance is now at 1.9843 (Apr 10 high) followed by 1.9928 (Apr 8 high).

· Australian Dollar – 0.9235

Initial support a 0.9243 (Apr 8 low) followed by 0.9177 (Apr 7 low). Initial resistance is now at 0.9354 (Mar 19 high) followed by 0.9473 (Mar 13 high).

· Gold – 917.90

Initial support at 903.40 (Apr 9 low) followed by 900.50 (Apr 4 low). Initial resistance is now at 940.60 (Mar 31 high) followed by 954.98 (Mar 26 high).

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Daily Forex Update(April 11 2008)

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FOREX Daily Outlook by Easy-Forex.com

BoE cuts rates, ECB remain hawkish. G7 Meeting over weekend.

CURRENCY TRADING SUMMARY – 11 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) grinded higher on Thursday tracking equity markets and as expected rate announcements coming out of Europe. Commodity prices fell as investors returned to risk averse assets overnight. The US trade deficit for February widened more than forecasted to US$62.3 billion (5.7%), whilst initial jobless claims fell by a more than expected 53k to 357k. The Fed’s chairman, Ben Bernanke, spoke about financial stability in the U.S yesterday, making claims they will be proactive in finding a solution to the U.S financial instability. Despite the poor data coming from the U.S and claims from the International Monetary Fund (IMF) that the U.S is headed for a recession, U.S share markets gained with the Dow Jones closing 54 points up (0.4%), while the NASDAQ rallied 29 points (1.3%) following strong growth in technology stocks. Oil prices fell by US76c (0.7%) a barrel to US$110.11 following claims from a Saudi Arabian exporter that oil supplies were ample. Looking ahead, the Michigan Sentiment report is to be released on Friday for the Month of April with forecasts of little change from 69.5 in March to 69 to be expected for April. In other news, the G7 summit is being held over the weekend with credit worries being the hot topic, stay tuned for commentary on Monday.

· The Euro (EURO) had a volatile day surging to new record highs against the dollar and Sterling in the lead up to the ECB rate announcement, followed by a moderation after rates were unchanged at 4.00% as expected. ECB President Trichet emphasized that “upside risks to price stability prevail over the medium term,” which ultimately lead to the rates being unchanged. Trichet maintained his hawkish outlook for the Euro zone, describing the economic stability as “sound”, despite the financial markets turmoil causing “unusually high” uncertainty. The EURUSD traded at a high of 1.5914 and a low of 1.5725 before closing at 1.5742 in New York.

· The Japanese Yen (JPY) strengthened following Singapore’s central bank tightening monetary policy on Thursday in a surprise move. The USDJPY traded at a high of 102.05 and a low of 100.03, before closing at 101.88.

· The Sterling (GBP) fell slightly on Thursday following the expected BoE rate announcement of a cut of 25bps to 5.00%, the central bank’s third rate cut in 5 months. In the accompanying statement, the BoE attributed the rate cut to growing concerns over the credit markets and the prospect of a deterioration in output growth for the second half of 2008. Inflation was a secondary consideration in this decision as committee judges conceded inflation would remain above the 2% target. The GBPUSD traded at a high of 1.9842 and a low of 1.9708 before closing at 1.9723 in New York.

· The Australian Dollar (AUD) traded sideways as investors were reluctant to heavily deal in the currency as they waited for rate announcements coming out of Europe. The AUDUSD traded at a high 0.9346 and a low of 0.9278 before closing at 0.9327 in New York. No data is to be released on Friday as we wait for the G7 summit over the weekend.

· Gold (XAU) eased on Thursday as a stronger greenback weakened the purchasing power of buyers around the world. Prices dropped by US$5.70 (0.6%) to US$931.80.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5684	1.5726	1.5740	1.5914	1.6000
USD/JPY	99.36	100.03	102.00	102.84	102.95
GBP/USD	1.9651	1.9707	1.9715	1.9843	1.9928
AUD/USD	0.9177	0.9243	0.9320	0.9354	0.9473
XAU/USD	903.40	921.80	929.00	940.60	954.98

· Euro – 1.5740

Initial support at 1.5726 (Apr 10 low) followed by 1.5684 (Apr 9 Low). Initial resistance is now located at 1.5914 (Apr 10 high) followed by 1.600 (psychological resistance).

· Yen – 102.00

Initial support is located at 100.03 (Apr 10 low) followed by 99.36 (50% retracement of the 95.76 to 102.95 advance). Initial resistance is now at 102.84 (Apr 10 high) followed by 102.95 (Apr 3 reaction high).

· Pound – 1.9715

Initial support at 1.9707 (Apr 10 low) followed by 1.9651 (Apr 9 low). Initial resistance is now at 1.9843 (Apr 10 high) followed by 1.9928 (Apr 8 high).

· Australian Dollar – 0.9320

Initial support a 0.9243 (Apr 8 low) followed by 0.9177 (Apr 7 low). Initial resistance is now at 0.9354 (Mar 19 high) followed by 0.9473 (Mar 13 high).

· Gold – 929.00

Initial support at 921.80 (Apr 10 low) followed by 903.40 (Apr 9 low). Initial resistance is now at 940.60 (Mar 31 high) followed by 954.98 (Mar 26 high).

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

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Daily Forex Update(April 10 2008)

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FOREX Daily Outlook by Easy-Forex.com

US Dollar falls tracking weaker equities. BoE and ECB rate announcements today.

CURRENCY TRADING SUMMARY – 10 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) fell on Wednesday tracking weaker equity markets as traders add to bets the Federal Reserve may cut rates by at least 25bps when it meets later this month. The major currencies gained on the back of this along with commodities. The International Monetary Fund (IMF) has trimmed its forecasts for global economic growth in 2008 from 4.1% to 3.7% citing fears of a spill-over effect from the U.S as the reason. UBS, the World’s second largest currency trader, released commentary on Wednesday which read for a better outlook for the U.S encouraging investors to buy the dollar against the Euro as the U.S economy will recover from a “mild recession” in the second half of 2008, whilst hinting that Europe has probably peaked. Despite these comments, the Euro gained to come within a cent of a record high against the dollar. U.S share markets fell again on Wednesday after oil prices hit record highs, the Dow Jones ended 49 points lower (-0.4%), while the NASDAQ lost 26 points (-1.1%). Oil prices hit a high of US$112 a barrel as supply concerns remain, before closing at US$110.07, up 2.2%. Looking ahead, the Trade Balance is to be released on Thursday for the month of February with forecasts predicting a deficit of -US$57.5 billion, a similar figure to the previous month’s deficit of -US$58.2. Also to be released on Thursday is jobless claims. Look for ECB and BoE rate announcements on Thursday to have an impact on the greenback also.

· The Euro (EURO) grinded higher on Wednesday as poor economic data coming out from the U.K and U.S, combined with strengthening expectations the ECB may keep rates unchanged at 4.0% continue to push the Euro to near record highs. Economic data released on Wednesday saw Q4 GDP revised lower to 0.4% q/q and 2.2% y/y. Germany’s trade surplus improved in February to $16.4 billion Euros, outstripping expectations of a decline to $15.8 billion. This was an improvement of $0.3 billion from the previous month’s figures. The EURUSD traded at a high of 1.5865 and a low of 1.5685, before closing at 1.5826 in New York. Looking ahead, all the focus is on the ECB rate announcement due out on Thursday.

· The Japanese Yen (JPY) strengthened slightly against the dollar despite the BoJ kept interest rates unchanged at 0.5% with a unanimous 9-0 vote, coupled with weaker U.S equity markets. The USDJPY traded at a high of 102.84 and a low of 101.50, before finishing in New York at 101.68.

· The Sterling (GBP) recovered from 6-week lows against the greenback on Wednesday, edging above the key 1.97 level. However, the pound fell against the Euro to all-time lows of .8012. Industrial production did grow 0.3% for the month of February, greater than the forecast of 0.1%. However, traders are still adding to bets the BoE may announce a rate cut when it meets on Thursday. The GBPUSD traded at a high of 1.9791 and a low of 1.9653, before closing at 1.9750 in New York.

· The Australian Dollar (AUD) weakened in the Asian session following poor consumer sentiment results which saw a drop in confidence by a further -1.3% to a 15-year low, before regaining somewhat in New York following weaker U.S stocks. The AUDUSD traded at a high of 0.9334 and a low of 0.9262 before recovering to 0.9292 at the close of New York. Looking ahead, the Unemployment Rate is due out on Thursday as forecasts predict a rise from 4.0% to 4.1%.

· Gold (XAU) eased in the Asian session, before surging in New York following a weaker greenback causing an increased attraction towards commodities. Prices rose by US$19.50 (2.1%) to US$937.50.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5628	1.5684	1.5820	1.5865	1.5896
USD/JPY	100.24	101.27	101.85	102.95	103.59
GBP/USD	1.9607	1.9651	1.9740	1.9928	2.0048
AUD/USD	0.9177	0.9243	0.9290	0.9323	0.9354
XAU/USD	888.20	900.50	933.50	935.60	940.60

· Euro – 1.5820

Initial support at 1.5684 (Apr 9 low) followed by 1.5628 (Apr 7 Low). Initial resistance is now located at 1.5865 (Apr 9 high) followed by 1.5896 (Mar 31 high).

· Yen – 101.85

Initial support is located at 101.27 (38.2% retracement of the 98.56 to 102.95 advance) followed by 100.24 (61.8% retracement of the 98.56 to 102.95 advance). Initial resistance is now at 102.95 (Apr 3 high) followed by 103.59 (Mar 11 high).

· Pound – 1.9740

Initial support at 1.9651 (Apr 9 low) followed by 1.9607 (76.4% retracement of 1.9363-2.0398). Initial resistance is now at 1.9928 (Apr 8 high) followed by 2.0048 (Apr 4 high).

· Australian Dollar – 0.9290

Initial support a 0.9243 (Apr 8 low) followed by 0.9177 (Apr 7 low). Initial resistance is now at 0.9323 (Apr 9 high) followed by 0.9354 (Mar 19 high).

· Gold – 933.50

Initial support at 900.50 (Apr 4 low) followed by 888.20 (Apr 3 low). Initial resistance is now at 935.60 (Apr 9 high) followed by 940.60 (Mar 31 high).

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Daily Forex Update(April 9 2008)

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FOREX Daily Outlook by Easy-Forex.com

FOMC Minutes suggest worst is not over for U.S economy. BoJ to make rate announcement today.

CURRENCY TRADING SUMMARY – 09 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was stronger on Tuesday as concerns about the spread of the U.S downturn could warrant rate cuts from central banks around Europe and Asia when they meet this week. The U.S gain has come on the back of calls from the International Monetary Fund (IMF) for global intervention to tackle the global credit crisis. Tuesday saw the release of the FOMC minutes from the Fed’s March meeting which highlighted the likelihood of a contraction in GDP for the first half of 2008 along with thoughts that “a prolonged and severe economic downturn could not be ruled out.” It also noted there were no signs the U.S housing sector is anywhere near stabilizing as credit woes still continue, this is supported by a worse than expected drop of -1.9% in U.S pending home sales for the month of February after initial forecasts estimated a drop of only -0.7%. The share markets ended slightly down on Tuesday with the NASDAQ dropping 7 points (-0.5%) and the Dow Jones shaving 36 points (-0.3%). Oil prices moderated on Tuesday falling US80c to US$106.34 a barrel. A fairly quiet day is expected on the data release front as we wait for the central bank rate announcements in Europe and the G7 meeting later this week

· The Euro (EURO) fell slightly against the USD overnight but rose to a record high against the sterling as poor housing figures and possible rate cuts overshadow the UK currency. The market is seemingly reluctant to heavily buy the Euro as they wait for the ECB rate announcement on Thursday where expectations are ECB President Trichet is to sound a little more dovish in his economic outlook for the Euro Zone in his press conference although rates are widely expected to remain unchanged at 4.0%. The EURUSD traded at a high of 1.5798 and a low of 1.5675 before closing at 1.5710 in New York.

· The Japanese Yen (JPY) rose to a three month high against the Euro, whilst it lost ground against the U.S dollar as Japanese investors continue to look towards high yielding assets. The USDJPY traded at a high of 102.68 and a low of 101.78, before closing at 102.55 in New York. The BoJ is widely expected to hold rates at 0.5% on Wednesday.

· The Sterling (GBP) was sold off throughout the New York session which saw it hit a record low against the Euro as data released on UK housing prices indicated a drop in prices by -2.5% for the month of March, its worst decline since September 1992. Added to this, investors have been factoring in the growing likelihood of a rate cut when the BoE meet this week. The GBPUSD traded at a high of 1.9926 and a low of 1.9667 before closing at 1.9675 in New York.

· The Australian Dollar (AUD) grinded higher tracking equity markets in the Asian session, before poor U.S data saw it rise up above the key US93c level. The Aussie Dollar also rose after reports of Mergers & Acquisitions pipelines, that China was interested in purchasing a larger stake in BHP Billiton. Overall, the AUDUSD traded at high of 0.9322 and a low of 0.9245 before closing at 0.9309 in New York. Looking ahead, consumer sentiment is to be released on Wednesday for the month of April with previous figures seen at -9.1%.

· Gold (XAU) eased on profit-taking falling by US$8.80 an ounce (1.5%) to close at US$918.00.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5510	1.5628	1.5695	1.5799	1.5787
USD/JPY	100.24	101.27	102.75	102.95	103.59
GBP/USD	1.9410	1.9607	1.9670	1.9928	2.0048
AUD/USD	0.9100	0.9177	0.9320	0.9312	0.9354
XAU/USD	888.20	900.50	916.35	929.40	940.60

· Euro – 1.5695

Initial support at 1.5628 (Apr 7 low) followed by 1.5510 (Apr 3 Low). Initial resistance is now located at 1.5779 (Apr 8 high) followed by 1.5787 (Apr 1 high).

· Yen – 102.75

Initial support is located at 101.27 (38.2% retracement of the 98.56 to 102.95 advance) followed by 100.24 (61.8% retracement of the 98.56 to 102.95 advance). Initial resistance is now at 102.95 (Apr 3 high) followed by 103.59 (Mar 11 high).

· Pound – 1.9670

Initial support at 1.9607 (76.4% retracement of 1.9363-2.0398) followed by 1.9410 (Feb 21 low). Initial resistance is now at 1.9928 (Apr 8 high) followed by 2.0048 (Apr 4 high).

· Australian Dollar – 0.9320

Initial support a 0.9177 (Apr 7 low) followed by 0.9100 (Apr 4 low). Initial resistance is now at 0.9312 (Apr 8 high) followed by 0.9354 (Mar 19 high).

· Gold – 916.35

Initial support at 900.50 (Apr 4 low) followed by 888.20 (Apr 3 low). Initial resistance is now at 929.40 (Apr 7 high) followed by 940.60 (Mar 31 high).

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Daily Forex Update(April 8 2008)

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FOREX Daily Outlook by Easy-Forex.com

Majors pull back from USD in anticipation of central bank announcements this week.

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

· U.S. Dollar Trading (USD) strengthened against the major currencies overnight, joining the equity markets in shaking off last week’s soft U.S jobs data as news that America’s largest savings and loan bank, Washington Mutual, will be receiving a $5 billion capital injection from equity group TPG. Whilst acting like a shot of confidence in the market, U.S consumer credit rose by US$5.16 billion for the month of February. However, this was below the expected amount of US$5.5 billion so there may be indications the Federal Reserve’s drastic easing of monetary policy is beginning to flow through the economy. The NASDAQ lost 6 points (-0.3%) whilst the Dow Jones had a volatile day after being up 124 points at one stage, before closing 3 points up. Oil prices surged almost 3% on Monday, up $2.86 a barrel to US$109.09 amid supply concerns following a large refinery fire in Finland over the weekend. Not much data coming out from the U.S as eyes are beginning to look ahead to the weekend’s G7 meeting to see what plans will come out to help fight the ongoing credit crisis.

· The Euro (EURO) dropped slightly against the greenback partly due to the increased sentiment around the U.S following Washington Mutual’s capital injection. The EURUSD traded at a high of 1.5736 and a low of 1.5628, before closing in New York at 1.5704. Looking ahead, the focus is on the ECB rate announcement on Thursday, with expectations the bank will maintain its current rate at 4.0%, particularly following the German Industrial Output data release on Monday which saw a growth of 0.4%, this after forecasts of -0.5%, indicating the Euro is remaining solid.

· The Japanese Yen (JPY) traded sideways throughout Monday following the U.S’ slight recovery. The USDJPY had a high of 102.65 and a low of 101.35 before closing at 102.42 in New York. The big announcement for Tuesday is the BoJ rate announcement with forecasts expecting the bank to maintain its current stance of 0.5%.

· The Sterling (GBP) weakened overnight as speculation grows the BoE will cut interest rates on Thursday to help stimulate the slowing economy. The GBPUSD traded at a high of 1.9951 and a low of 1.9836 before closing out a 1.9867 in New York.

· The Australian Dollar (AUD) had a volatile day as news of Australia’s worse than expected trade deficit seen at -$3.29 billion, outstripping expectations of -$2.5 billion, caused the Aussie Dollar to bottom out at 0.9180 before gaining momentum in New York on the back of an increasing investor risk appetite for high yielding assets. The AUDUSD traded at a high of 0.9283 and a low of 0.9180 before closing at 0.9263 in New York trading.

· Gold (XAU) rose on Monday following an increased interest from commodity focused investors along with tracking oil’s inflating price. Prices rose US$13.60 an ounce (1.5%) to US$926.80 a barrel.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5510	1.5628	1.5697	1.5774	1.5787
USD/JPY	100.24	101.27	102.58	102.95	103.59
GBP/USD	1.9722	1.9730	1.9880	1.9957	2.0048
AUD/USD	0.9100	0.9177	0.9259	0.9285	0.9290
XAU/USD	888.20	900.50	920.40	929.40	940.60

· Euro – 1.5697

Initial support at 1.5628 (Apr 7 low) followed by 1.5510 (Apr 3 Low). Initial resistance is now located at 1.5774 (Apr 4 high) followed by 1.5787 (Apr 1 high).

· Yen – 102.58

Initial support is located at 1021.27 (38.2% retracement of the 98.56 to 102.95 advance) followed by 100.24 (61.8% retracement of the 98.56 to 102.95 advance). Initial resistance is now at 102.95 (Apr 3 high) followed by 103.59 (Mar 11 high).

· Pound – 1.9880

Initial support at 1.9730 (Apr 1 low) followed by 1.9722 (Mar 5 low). Initial resistance is now at 1.9957 (Apr 7 high) followed by 2.0048 (Apr 4 high).

· Australian Dollar – 0.9259

Initial support a 0.9177 (Apr 7 low) followed by 0.9100 (Apr 4 low). Initial resistance is now at 0.9285 (Apr 7 high) followed by 0.9290 (61.8% retracement of the 0.9499 to 0.8953 decline).

· Gold – 920.40

Initial support at 900.50 (Apr 4 low) followed by 888.20 (Apr 3 low). Initial resistance is now at 929.40 (Apr 7 high) followed by 940.60 (Mar 31 high).

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

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Daily Forex Update (April 7 2008)

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FOREX Daily Outlook by Easy-Forex.com

Non-Farm Payrolls Pushes Dollar Down, Increasing Likelihood of Rate Cut

CURRENCY TRADING SUMMARY – 07 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was weaker on Friday as a result of a worse than expected Non-Farm Payrolls data release indicating employment fell by 80,000 in March, some 30,000 less than what was forecast. February’s figures were also revised to show a loss of 76,000 jobs rather than the 63,000 it originally reported, further indicating the world’s largest economy may be slipping into recession. Further to this news, the unemployment rate rose 0.3% to 5.1% its highest level in almost 3 years fuelling thoughts the Fed may cut rates yet again as early as the end of this month. The US share market had a mixed reaction to the weak economic data with the NASDAQ rising 7.68 points (0.3%) and the Dow Jones falling -16.61 points (-0.1%). Oil prices gained US$2.40 a barrel to US$106.23. Looking ahead, consumer credit data is to be released with forecasts expected to be 5.5, a drop from February’s figure of 6.9.

· The Euro (EURO) remained strong against the major currencies in the wake of weak economic data being released out of the U.S on Friday. The EURUSD traded at a high of 1.5775 and a low of 1.5639, before closing at 1.5718 in the New York session. Looking ahead the Industrial Output for Germany is to be released on Monday with forecasts expecting a -0.5% contraction, following a 1.8% growth in February.

· The Japanese Yen (JPY) strengthened on the back speculation of a slowdown in the global economy, the USDJPY had a high of 102.69 and a low of 101.47, before closing at 101.76 in the New York session.

· The Sterling (GBP) closely tracked the U.S and showed a decline against the Euro. The weak U.S is expected to hurt U.K growth which is prompting traders to add to bets that the BoE may cut rates as early as next week to help sure up the economy. The GBPUSD traded at a high of 2.0049 and a low of 1.9912, before closing out at 1.9912 in the New York session.

· The Australian Dollar (AUD) remained strong in the face of weak Retail Sales figures being released on Friday in the Asian session, before rallying in the U.S session after the release of Non-Farm Payroll figures. Sales figures contraction of -0.1% is indicative of RBA Governor Stevens’ thoughts that there is a change in demand amongst consumers. The AUDUSD traded at a high 0.9228 and a low of .9101 before closing at .9217 in the New York session. Looking ahead, Trade Balance figures are to be released during the Asian session on Monday with forecasts expected to see the deficit narrow -$2500 million, following February’s figure of -$2723 million.

· Gold (XAU) rose on Friday following a weaker U.S economic outlook and solid oil prices. Prices rose US$8.10 an ounce (0.9%) to US$917.70.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5510	1.5639	1.5731	1.5774	1.5787
USD/JPY	100.24	101.27	101.56	102.95	103.59
GBP/USD	1.9760	1.9911	1.9930	2.0048	2.0090
AUD/USD	0.9024	0.9100	0.9221	0.9254	0.9290
XAU/USD	873.00	888.20	915.70	914.57	921.00

· Euro – 1.5731

Initial support at 1.5639 (Apr 4 low) followed by 1.5510 (Apr 3 Low). Initial resistance is now located at 1.5774 (Apr 4 high) followed by 1.5787 (Apr 1 high).

· Yen – 101.56

Initial support is located at 1021.27 (38.2% retracement of the 98.56 to 102.95 advance) followed by 100.24 (61.8% retracement of the 98.56 to 102.95 advance). Initial resistance is now at 102.95 (Apr 3 high) followed by 103.59 (Mar 11 high).

· Pound – 1.9930

Initial support at 1.9911 (Apr 4 low) followed by 1.9760 (Apr 3 low). Initial resistance is now at 2.0048 (Apr 4 high) followed by 2.0090 (Mar 28 high).

· Australian Dollar – 0.9221

Initial support a 0.9100 (Apr 4 low) followed by 0.9024 (76.4% retracement of the 0.8953 to 0.9254 advance). Initial resistance is now at 0.9254 (Mar 27 high) followed by 0.9290 (61.8% retracement of the 0.9499 to 0.8953 decline).

· Gold – 915.70

Initial support at 888.20 (Apr 3 low) followed by 873.00 (Apr 1 low). Initial resistance is now at 914.57 (Apr 4 high) followed by 921.00 (Apr 1 high).

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Daily Forex Update (April 4 2008)

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FOREX Daily Outlook by Easy-Forex.com

ISM Services boosts dollar leading into Non Farm Payrolls on Friday.

CURRENCY TRADING SUMMARY – 04 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) overnight remained stable amongst all other major currencies in anticipation of Non Farm Payrolls, which is to be released on Friday. In data news, the ISM Non-Manufacturing report proved to be an improvement on expectations, coming in at 49.6, up 0.3 from last month. However, this is still below the key 50 point range indicating it is still contracting. Other news released overnight saw jobless claims surge from 38k to 407k, the highest rating in three years. In U.S share market news the NASDAQ was up a poultry 1.90 points to 2363.30 and the Dow Jones improved 20.20 points to 12626.03. Oil fell by US$1.00 a barrel to US$103.83 amid supply concerns. Looking ahead, the Non Farm Payrolls report is due out at 12:30GMT with forecasts suggesting -60, an improvement from last month’s -63. Jobs data remains the focus this week with Unemployment rate also being released for March with expectations of an increase to 5%, up from 4.8% from last month.

· The Euro (EURO) felt the pressure coming from retail sales results overnight, with a contraction in spending by -0.5% for the month of February after initial expectations of a rise by 0.2%. PMI services data released overnight saw a figure of 51.6 for the month of March, a reduction from 52.3 for February. The EURUSD traded at a high of 1.5697 and a low of 1.5511 before closing at 1.5676 in the New York session.

· The Japanese Yen (JPY) traded sideways due to absent data tracking equity markets. The USDJPY had a high of 102.95 and a low of 102.07, before closing at 102.35 in the New York session.

· The Sterling (GBP) was subject to PMI services data which saw it fall from 54 to 52.1 for the month of March, its lowest reading since November 2007 prompting traders to add to bets that the BoE may cut rates as early as next week. The GBPUSD traded at a high 1.9975 and a low of 1.975, before closing out at 1.9950 in the New York session.

· The Australian Dollar (AUD) grinded higher in the early part of Europe trading against the USD before pairing its gains. Friday morning Asian session, RBA Governor Stevens indicated there is a change in demand amongst consumers, although noting that inflation may peak at 4.0%, which is above their target of 2-3%, suggesting interest rates may yet be tightened through the course of 2008. The AUDUSD traded at a high of .9178 and a low of .9093, before closing at .9173 in the New York session. Looking ahead, Retail Sales figures to be released on Friday indicate a growth in spending by 0.3% for the month of March. UPDATE: Aussie retail sales disappoints coming in at -0.1%.

· Gold (XAU) rose by US$9.40 an ounce (1.0%) to US$909.60 finding appeal on growing uncertainty in the US economy.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5473	1.5510	1.5665	1.5690	1.5787
USD/JPY	101.52	102.07	102.30	102.95	103.59
GBP/USD	1.9722	1.9760	1.9945	1.9979	2.0090
AUD/USD	0.8979	0.9024	0.9155	0.9181	0.9254
XAU/USD	873.00	888.20	904.60	921.00	940.60

· Euro – 1.5665

Initial support at 1.5510 (Apr 3 low) followed by 1.5473 (76.4% retracement of the 1.5324 to 1.5896 advance). Initial resistance is now located at 1.5690 (April 3 high) followed by 1.5787 (Apr 1 high).

· Yen – 102.30

Initial support is located at 102.07 (Apr 3 low) followed by 101.52 (Apr 2 low). Initial resistance is now at 102.95 (Apr 3 high) followed by 103.59 (Mar 11 high).

· Pound – 1.9945

Initial support at 1.9760 (Apr 3 low) followed by 1.9722 (Mar 5 low). Initial resistance is now at 1.9979 (Mar 31 high) followed by 2.0090 (Mar 28 high).

· Australian Dollar – 0.9155

Initial support a 0.9024 (76.4% retracement of the 0.8953 to 0.9254 advance) followed by 0.8979 (Mar 24 low). Initial resistance is now at 0.9181 (Apr 3 high) followed by 0.9254 (Mar 27 high)

· Gold – 904.60

Initial support at 888.20 (Apr 3 low) followed by 873.00 (Apr 1 low). Initial resistance is now at 921.0 (Apr 1 high) followed by 940.60 (Mar 31 high).

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

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Daily Forex Update(April 3 2008)

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FOREX Daily Outlook by Easy-Forex.com

Bernanke a step closer to conceding recession. Focus shifts to Payrolls data.

CURRENCY TRADING SUMMARY – 03 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) paired much of it recent gains as Fed Chairman Bernanke noted further declines in the world’s largest economy would continue to contract in the first half of 2008, conceding for the first time the likelihood of recession. In other news, ADP employment reports for the month of March grew by 8k jobs well above forecasts of -48k (Previous: -23k), prompting traders to foresee a better Non Farm Payrolls release come Friday. However any further gains were limited following Bernanke’s dovish comments where “it appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly." In U.S. share markets the NASDAQ was up by 15.97 points (+0.18%) whilst the Dow Jones fell by -48.53 (-0.38%). Crude oil rebounded by US$ 3.85 a barrel to US$ 104.83 following a decline in US inventories. Ahead on Thursday, key data in the form of ISM services is made public with economists forecasting a figure of 48.5 (Previous: 49.3) below the key 50 expansion level for the month of March.

· The Euro (EURO) rebounded on Wednesday on Fed comments of growing uncertainty in the U.S. PPI figures for the month of February came in on expectations at 0.6%. Overall the EURUSD traded with a low 1.5535 and a high of 1.5684 before closing the day at 1.5667 in the New York session. Looking ahead Retail Sales figure out of Europe will be key on Thursday with forecasts lying at 0.2%/0.0% (Previous: 0.4%/-0.1%) for the m/m and y/y respectively. ECB president Trichet is scheduled to speak in Berlin at 12:30 GMT, where markets are widely expecting a hawkish stance, emphasizing the banks focus on fighting inflation.

· The Japanese Yen (JPY) eased further against the greenback as Fed Chairman Bernanke said he didn’t anticipate rescuing another Wall Street firm. Overall the USDJPY traded with a low of 101.51 and a high of 102.84 before closing the day at 102.33 in the New York session.

· The Sterling (GBP) rallied across the board as Mortgage Approvals for the month of February fell less then expectations, prompting traders to trim bets that the BoE will move to cut rates as early as next week. The GBPUSD traded with a low of 1.9750 and a high of 1.9899 before closing the day at 1.9888 in the New York session. PMI services are out o Europe’s second largest economy on Thursday.

· The Australian Dollar (AUD) rallied as commodities headed higher. The Aussie Dollar was also boosted by rebounding Asian Stock Markets, prompting a return to the High Yielding Currency. Overall the AUDUSD traded with a low of 0.9055 and a high of 0.9157 before closing the session at 0.9145 in the New York session. All focus is being placed on Retail Sales figures and RBA Governor Stevens talking on Friday the 4^th of April.

· Gold (XAU) also headed higher on energy prices. XAU traded higher by US$12.40 an ounce breaking key levels of US$900.20. XAU did trade with a low of 882.40 and a high of 905.30.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5473	1.5534	1.5675	1.5684	1.5787
USD/JPY	99.59	101.52	102.35	103.59	103.70
GBP/USD	1.9607	1.9722	1.9870	1.9899	1.9979
AUD/USD	0.8979	0.9024	0.9150	0.9158	0.9254
XAU/USD	849.50	873.00	902.70	921.00	940.60

· Euro – 1.5675

Initial support at 1.5534 (Apr 2 low) followed by 1.5473 (76.4% retracement of the 1.5324 to 1.5896 advance). Initial resistance is now located at 1.5684 (April 2 high) followed by 1.5787 (Apr 1 low).

· Yen – 102.35

Initial support is located at 101.52 (Apr 2 low) followed by 99.59 (Apr 1 low). Initial resistance is now at 103.59 (Mar 11 high) followed by 103.70 (61.8% retracement of the 108.61 to 95.76 decline)

· Pound – 1.9870

Initial support at 1.9722 (Mar 5 low) followed by 1.9607 (76.4% retracement of the 1.9363 to 2.0398 advance). Initial resistance is now at 1.9875 (Apr 1 high) followed by 1.9979 (Mar 31 high)

· Australian Dollar – 0.9150

Initial support a 0.9024 (76.4% retracement of the 0.8953 to 0.9254 advance) followed by 0.8979 (Mar 24 low). Initial resistance is now at 0.9158 (Mar 27 high) followed by 0.9254 (Mar 27 high)

· Gold – 902.70

Initial support at 873.00 (Apr 1 low) followed by 849.50 (Jan 22 reaction low). Initial resistance is now at 921.0 (Apr 1 high) followed by 940.60 (Mar 31 high)

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

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Daily Forex Update(April 2 2008)

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FOREX Daily Outlook by Easy-Forex.com

Rebounding stocks and falling commodities.

CURRENCY TRADING SUMMARY – 02 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) the dollar rallied across the board on positive ISM Manufacturing figures were released above expectations, coming in at 48.6 for the month of March (Forecast: 47.5), yet below the key 50 contraction target. In other news, further uncertainty surrounded Financials causing a volatile equities market with UBS the world’s largest wealth manager confirming a loss of 15 billion CHF for the first quarter of 2008. However, news of Lehman Brothers injection of fresh capital ($4 billion) prompted markets to view it as a sign the worst of the credit crunch appears to be over. In U.S. share markets the NASDAQ was up by 291.20 (+3.31%) whilst the Dow Jones also rallied by 391.47 points (+3.19%). Crude oil fell for the third consecutive day by US$0.30 a barrel to US$100.17. Looking ahead, Fed Chairman Bernanke is scheduled to speak in front of a joint economic committee, whilst ADP employment will once again pose as precursor to Non Farm Payrolls this Friday.

· The Euro (EURO) eased considerably on news that US manufacturing had contracted less then expected for the month of March. Eurozone PMI Manufacturing was released on expectations at 52. In other news, Unemployment in Europe largest economy (Germany) fell to its lowest level since 1992 to 7.8% for the month of March (Previous: 8%). Overall the EURUSD traded with a low of 1.5564 and a high of 1.5785 before closing the day at 1.5600 in the New York session. Looking ahead PPI figures for the month of February are made public out of the EU on Wednesday.

· The Japanese Yen (JPY) fell sharply against the Japanese Yen, after stronger than expected ISM data from US pushed it towards 102.00. Overall the USDJPY traded with a low of 99.60 and a high of 102.16 before closing the day at 102.01 in the New York session

· The Sterling (GBP) eased the UK Financial sector continues to feel the brunt of the global credit crunch. The Sterling Pound also gave up its mid-session gains on a broadly stronger dollar boosted by positive ISM readings. Overall the GBPUSD traded with a low of 1.9731 and a high of 1.9874 before closing the day at 1.9731 in the New York session.

· The Australian Dollar (AUD) saw the RBA leave its cash rate at 7.25% as widely expected, as comments made note of “overall tightening in financial conditions since the middle of 2007 has been substantial”, whilst growth in domestic demand appears to be moderating as inflation is perceived to decline over time. Furthermore, lower commodities once again weighed heavy on the Aussie. Overall the AUDUSD traded with a low of 0.9030 and a high of 0.9148 before closing the day at 0.9057 in the New York session.

· Gold (XAU) tumbled further by US$33.70 an ounce on lower oil prices and liquidation of long gold positions. XAU traded with a low of 873.80 and a high of 920.60

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5473	1.5554	1.5610	1.5787	1.5896
USD/JPY	98.56	99.59	101.70	102.19	103.59
GBP/USD	1.9607	1.9722	1.9780	1.9875	1.9979
AUD/USD	0.8979	0.9024	0.9085	0.9151	0.9254
XAU/USD	849.50	872.50	886.70	921.00	940.60

· Euro – 1.5610

Initial support at 1.5554 (61.8% retracement of the 1.5324 to 1.5896 advance) followed by 1.5473 (76.4% retracement of the 1.5324 to 1.5896 advance). Initial resistance is now located at 1.5787 (April 1 high) followed by 1.5896 (Mar 31 low).

· Yen – 101.70

Initial support is located at 99.59 (Apr 1 low) followed by 98.56 (Mar 27 low). Initial resistance is now at 102.19 (50% retracement of the 108.61 to 95.75 decline) followed by 103.59 (Mar 11 high)

· Pound – 1.9780

Initial support at 1.9722 (Mar 5 low) followed by 1.9607 (76.4% retracement of the 1.9363 to 2.0398 advance). Initial resistance is now at 1.9875 (Apr 1 high) followed by 1.9979 (Mar 31 high)

· Australian Dollar – 0.9085

Initial support a 0.9024 (76.4% retracement of the 0.8953 to 0.9254 advance) followed by 0.8979 (Mar 24 low). Initial resistance is now at 0.9151 (Apr 1 high) followed by 0.9254 (Mar 27 high)

· Gold – 886.70

Initial support at 872.50 (Apr 1 low) followed by 849.50 (Jan 22 reaction low). Initial resistance is now at 921.0 (Apr 1 high) followed by 940.60 (Mar 31 high)

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

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Daily Forex Update(April 1 2008)

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ECB concerned with inflation, XAU and Oil tumble.

CURRENCY TRADING SUMMARY – 01 APRIL 2008 (00:30GMT)

· U.S. Dollar Trading (USD) was choppy losing ground versus a number of majors in the early part of the New York session, yet any further negativity was capped on a surprisingly boisterous reading in Chicago PMI, which rose to 48.2 for the month of March (Previous: 44.5; Forecast: 46.5). That said the figure still remained below the 50 level, signaling a contraction rather than an expansion in output. In U.S. share markets the NASDAQ was up by 18 points (0.4%) whilst the Dow Jones was also up by 46 pts (0.4%). Crude oil fell by US$3.47 a barrel to US$100.30 on news that outflow from Iraq will be fully restored. Looking ahead, ISM Manufacturing is expected to come in at 47.5 for the month of February, below the previous release of 48.3.

· The Euro (EURO) rallied after a European Union report showed consumer prices accelerated at the fastest pace in almost 16 years this month. In other news ECB member Liikanen mentioned that the outlook of growth in Europe had become “more subdued”, whilst inflation had accelerated. Overall the EURUSD traded with a low of 1.5760 and a high of 1.5896 before closing the day at 1.5783 in the New York session. PMI Manufacturing for the month of March is expected to come in at 52 (Previous: 52.3), whilst Unemployment Rate is expected be unchanged at 7.1%.

· The Japanese Yen (JPY) held firm between a defined range tracking equity markets. Overall the USDJPY traded with a low of 98.81 and a high of 100.19 before closing the day at 99.73 in the New York session. UPDATE: Reuters Tankan Survey for the first quarter was released below expectations at 11 (Forecasts: 13; Previous: 19).

· The Sterling (GBP) continued to depreciate as the EURGBP traded at a record high of 79.73 pushing the Sterling Pound down by 8.2% for the first quarter. The pound also slipped for a third day against the dollar, as signs the worldwide credit squeeze is hurting the economy prompted traders to bet on an interest-rate cut next week by the BoE. Overall the GBPUSD traded with a low of 1.9815 and a high of 1.9979 before closing the day at 1.9832 in the New York session. PMI manufacturing is expected to come in at 51, previous 51.3.

· The Australian Dollar (AUD) eased on the back of softer commodity prices trading with a low of 0.9105 and a high of 0.9181 before closing the day at 0.9136 in the New York session. The RBA s widely expected to keep rates on hold Tuesday at 7.25%

· Gold (XAU) decline in commodity prices reduced demand for precious metals as a hedge against inflation. XAU traded with a low of 912.90 and a high of 940.75.

TECHNICAL COMMENTARY

Currency	Sup 2	Sup 1	Spot	Res 1	Res 2
EUR/USD	1.5584	1.5727	1.5775	1.5896	1.5904
USD/JPY	98.46	98.56	99.85	100.39	101.04
GBP/USD	1.9760	1.9814	1.9840	1.9979	2.0090
AUD/USD	0.9073	0.9104	0.9130	0.9254	0.9290
XAU/USD	908.94	912.60	920.00	954.98	984.00

· Euro – 1.5775

Initial support at 1.5727 (Mar 27 low) followed by 1.5584 (Mar 26 low). Initial resistance is now located at 1.5896 (Mar 31 high) followed by 1.5904 (Mar 17 low).

· Yen – 99.85

Initial support is located at 98.89 (Mar 26 low) followed by 98.46 (Mar 20 low). Initial resistance is now at 100.33 (Mar 26 high) followed by 101.04 (Mar 25 high)

· Pound – 1.9840

Initial support at 1.9927 (Mar 26 low) followed by 1.9849 (Mar 25 low). Initial resistance is now at 2.0111 (Mar 26 high) followed by 2.0145 (61.8% retracement of the 2.0398 to 1.9737)

· Australian Dollar – 0.9130

Initial support a 0.9122 (Mar 26 low) followed by 0.9073 (Mar 25 low). Initial resistance is now at 0.9243 (Mar 26 high) followed by 0.9290 (61.8% retracement of the 0.9499 to 0.8953 decline)

· Gold – 920.00

Initial support at 912.60 (Mar 31 low) followed by 908.94 (7 ½ month bull channel resistance). Initial resistance is now at 954.98 (Mar 26 high) followed by 984.00 (61.8% retracement of the 1032.50 to 905.03 decline)

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

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