Daily Market Review 08/08/2008

USD Strength Across the Board

Almost all major resistance levels taken out in the USD-crosses. But negative Citigroup and Merrill Lynch news might weigh heavily on stocks.

Overnight News Bullets

* SW Budget Balance (Jul) out at 51.5B vs. 13.8B prior.
* SW CPI Headline Rate MoM/YoY (Jul) out at -0.1%/4.4% as expected.
* SW CPI Underlying MoM/YoY (Jul) out at -0.3%/3.2% vs. -0.3%/3.2% expected.
* NO Industrial Production MoM/YoY (Jun) out at -0.7%/5.9% vs. 1.6%/2.8% prior.
* NO Ind. Prod. Manufacturing MoM/YoY (Jun) out at -1.2%/4.7% vs. -1.3%/5.3% expected.
* UK HBOS House Prices MoM/YoY (Jul) out at -1.7%/-8.8% vs. -1.5%/-8.6% expected.
* GE Industrial Production MoM/YoY (Jun) out at 0.2%/1.7% vs. 0.8%/1.5% expected.
* UK BoE Rate Announcement out at 5.00% (unchanged) as expected.
* E-Z ECB Rate Announcement out at 4.25% (unchanged) as expected.
* CA Building Permits MoM (Jun) out at -5.3% vs. -1.0% expected.
* US Initial/Continuing Claims out at 455K/3311K vs. 425K/3255K expected.
* US Pending Home Sales MoM (Jun) out at 5.3% vs. -1.0% expected.
* US EIA Natural Gas Storage Change out at 56 vs. 62 expected.
* US ICSC Chain Store Sales YoY (Jun) out at 2.6% vs. 3.4% expected.
* US Consumer Credit (Jun) out at $14.3B vs. $6.3B expected.
* JN Bank Lending incl. Trusts YoY (Jul) out at 1.8% vs. 2.0% expected.
* JN Eco Watchers Survey Current/Outlook (Jul) out at 29.3/30.8 vs. 28.9/32.1 expected.
* SZ Unemployment Rate (Jul) out at 2.3%/2.5% as expected.

O/N Data Heat map:

EU	US	JP	UK	SZ	AU	CA	NZ	NO	SE	FR
		-				-		-

Calendar

Today's Highlights:

Date	Region	Release
Aug 11	NO	CPI figures
Aug 11	UK	PPI figures, Trade balance
Aug 11	CA	Housing Starts and Housing Prices
Aug 12	JN	CGPI, Industrial Production, Capacity Utilization, Consumer Confidence.
Aug 12	AU	NAB Business Confidence
Aug 12	UK	CPI, Retail Prices, DCLG House Prices
Aug 12	SW	AMV Unemployment Rate
Aug 12	US	Trade Balance, DOE/API, Monthly Budget, ABC Consumer Confidence.

This and Next Week’s Highlights:

Time (GMT)	Region	Release	Consensus
11:00	CA	Unemployment Rate (Jul)	6.2%
11:00	CA	Net Change in Employment (Jul)	5.0K
12:30	US	Nonfarm Productivity (2Q)	2.5%
12:30	US	Unit Labor Costs (2Q)	1.4%
14:00	US	Wholesale Inventories	0.6%

USDJPY to continue the uptrend after breaking the 50% Fibo Resistance...

EUR	USD	JPY	GBP	CHF	AUD	CAD	NZD	NOK	SEK	PLN
-	+		-		-	-	-

FX Trading Strategies

Pair	Supp.	Resis.	Comments
USDJPY	109.10	108.61	USD stronger across the board with USDJPY close to testing the 50% fibonacci (124.13-98.71) at 109.92, where a close above will trigger additional upside. We have placed an order to buy at 109.78 bid adding at 109.88, targeting 110.40, stop offer at 109.54.

Risk warning
Finexo Ltd. shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Finexo that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis especially leveraged investments such as foreign exchange trading and investment in derivatives can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.