? The euro appreciated vis-?-vis the U.S. dollar today as the single currency tested offers around the US$ 1.5500 figure and was supported around the $1.5420 level. Technically, today's intraday low was just above the 38.2% retracement of the move from $1.4430 to $1.6020. European Central Bank President Trichet reported “global growth remains significant despite the slowing down observed in a number of industrialized economies and clearly thanks to the remarkable resilience of a great number of emerging economies.” He added inflation risks remains “significant” on account of oil, commodities, and food price increases. Most traders believe the ECB will keep its benchmark main refinancing rate unchanged at 4.0% this week. Data released in the eurozone today saw Sentix May investor confidence lost 0.6 points to 3.5. In U.S. news, the April ISM non-manufacturing index improved to 52 from 49.6 in March. Data to be released in the U.S. this week include unit labour costs, non-farm productivity, and foreign trade. Remarks from Federal Reserve officials including Kansas City Fed President Hoenig, Fed Governor Kroszner, and former Federal Reserve Chairman Greenspan will be closely monitored. Euro bids are cited around the US$ 1.5345 level.
?/ CNY The yen appreciated vis-?-vis the U.S. dollar today as the greenback tested bids around the ?105.10 level and was capped around the ?105.45 level. Liquidity was reduced on account of the ongoing Japanese Golden Week holidays and is likely to be reduced in Tokyo for the duration of the week. Finance minister Nukaga talked about surging inflation in many parts of the world saying “As nations try to figure out what impact that higher input prices will have and how to deal with economic growth and inflation, it's very important that we discuss and bring our collective know-how together on how to make policy in these very difficult times.” The Nikkei 225 stock index last closed at ?14,049.26. Dollar bids are cited around the ?103.65/ ?101.35 levels. The euro depreciated vis-?-vis the yen as the single currency tested bids around the ?162.35 level and was capped around the ?163.10 level. The British pound came off vis-?-vis the yen as sterling tested bids around the ?206.80 level while the Swiss franc appreciated vis-?-vis the yen and tested offers around the ?208.30 level. The Chinese yuan weakened vis-?-vis the U.S. dollar as the greenback closed at CNY 7.0016 in the over-the-counter market, down from CNY 7.0002. Data released in China today saw the CFLP April manufacturing PMI survey improve to 59.2 from 58.4 in March. Goldman Sachs sees April inflation around 8.5% and Lehman Brothers sees 2008 GDP growth below 10.0%. People's Bank of China Governor Zhou said “We're always observing very carefully whether there is significant hot money flow into China. In the recent circumstances, (after) the U.S. lowered down the interest rates, a lot of short-term investors pay attention to investing in China. These circumstances may create some new situation.” Finance minister Yi reported China will boost the flexibility of the yuan's exchange rate.
₤ The British pound came off vis-?-vis the U.S. dollar today as cable tested bids around the US$ 1.9660 level and was capped around the $1.9785 level. Technically, today's intraday high was right around the 23.6% retracement of the move from US$ 2.0395 to $1.9595. U.K. financial markets were closed for a public holiday and liquidity will return to normal tomorrow. Some traders believe Bank of England's Monetary Policy Committee will reduce its repo rate this week while others believe BoE will not reduce interest rates until June. Cable bids are cited around the US$ 1.9505 level. The euro moved higher vis-?-vis the British pound as the single currency tested offers around the ₤0.7865 level and was supported around the ₤0.7815 level.
CHF The Swiss franc appreciated vis-?-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0515 level and was capped around the CHF 1.0565 level. Technically, today's intraday low was right around the 61.8% retracement of the move from CHF 1.1105 to CHF 0.9645. U.S. dollar offers are cited around the CHF 1.0760 level. The euro moved higher vis-?-vis the Swiss franc as the single currency tested offers around the CHF 1.6340 level while the British pound weakened vis-?-vis the Swiss franc as sterling tested bids around the CHF 2.0705 level.
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