European Mid Morning Update 22nd April 2008
Dollar making gains in early Europe
Releases from Europe:
Forecast Actual
March Swiss Trade Balance CHF 0.70bn 1.25bn
The Swiss trade balance is holding up reasonably well but overall declining – exports taking an 8% fall. Given the current global circumstances this trend is likely to continue for the time being.
The following economic releases are due today:
March
March Italian Trade Bal Non-EU EUR
U.S. Existing Home Sales (MoM) - 1.6%
U.S. Existing Home Sales 4.92mn
April
U.S. Richmond Fed Mfg Index 2.00
Economic releases are limited once again today but both U.S. existing home sales and the Richmond Fed manufacturing Index both have potential to impact on the Dollar. The latter is expected to reverse most of the rise seen in March while existing home sales really don’t stand much chance of providing any relief.
If these are both negative then the Dollar could come under pressure again. However, while new Dollar lows are still conceivable against the Euro, both the Swissie and Yen should remain comfortably above their lows.
Note important support and resistance areas:
USDJPY EURUSD USDCHF GBPUSD
Res: 104.42-63 1.5982-25 1.0230-82 1.9925-66
Res: 103.50-70 1.5900-44 1.0131-52 1.9829-62
Spt: 102.39-72 1.5802-29 1.0020-63 1.9736-45
Spt: 101.54-85 1.5710-65 0.9907-39 1.9640-80
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