Market Report

Date: 05 April 2006

Brief Economic Outlook

EURUSD-:  Long term trend line has been broken during NY trading after comments from Kansas City Fed president Hoeing and Lacker whereby they talked about the US economy being ‘close to a balanced growth path’ and ‘perhaps even at the upper end of neutrality’.  The initial reaction of the market  was big sell off' of USD as there comments did not go down well with most traders whereby there expectetion was for the FED to push interest rates to 5% next month.

Initial target, January high at 1.2330, but after breaking above the bearish trend line of 1.2280 outlook is to continue up to 1.2460 . For short term initial support at 1.2220, strong at 1.2200ish, only a return underneath of 1.21 can stop the Dollar descent.
Technical View

EUR/USD:  Spot : 1.2252
                      Res: 1.2330, 1.2460
                      Sup: 1.2220, 1.2195, 1.21

GBPUSD:  It peak at 1.7598 during the Asian session,  a big obstacle to cable extending north is breaking above 1.7610 .

GBP/USD : Spot :1.7516
                    Res :1.7570,1.7610, 1.7670
                    Sup : 1.75, 1.7460,1.7420

USDJPY:  Hovers around the 117.00-117.50  after recovering from the 116.67 overnight lows. Aggressive JPY demand was noted in the Asian session, exemplified by high volatility  in the USD/JPY  and EUR/JPY  .

USDJPY: Spot: 117.50
                 Res: 117.90, 118.Sup: 116.60, 116.20

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Information found within the above market report is believed to be accurate but www.netaloid.com does not warrant its completeness or accuracy. Opinions and estimates constitute the traders judgement and are subject to change without notice. Movements in exchange rates may have an adverse effect on the value of investments.
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