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Today's Issues and Risks

10/06/2009

Issues and Risks,June 10, 2009


Today's Key Issues (time in GMT):

08:30 GBP Industrial production, % m/m (y/y) Apr -0.2 (-12.5) exp,-0.6 (-12.4) prior
08:30 GBP Manufacturing output, % m/m (y/y) Apr0.0 (-12.6) exp,-0.1 (-12.9) prior
08:30 GBP Trade balance, £ bn Apr-6.4 exp, -6.6 prior
11:00 EUR ECB’s Gonzalez-Paramo speaks at Aviva event
12:30 USD Trade balance, $ bn Apr -29.0 exp, -27.6 prior
12:30 CAD Int'l merchandise trade, C$ bn Apr 0.9 exp,1.1 prior
14:00 USD FRB of Richmond President Lacker (FOMC voter) speaks on the economic outlook
16:15 USD Fed Governor Duke (FOMC voter) speaks on consumer protection
16:30 EUR ECB’s Stark speaks at a book presentation "Der Euro"
18:00 USD Budget balance, $ bn May -175.0 exp,-165.9 prior
18:00 USD Fed's beige book published
21:00 NZD RBNZ interest rate announcement, % Jun 2.50% exp, 2.50% prior
23:50 JPY real GDP, second preliminary, % q/q saar Q1 -14.9exp,-14.4 prior


The Risk Today:

EurUsd as stated tuesdays floor in at 1.3807 held well as we embark on building the shoulder of the S-H-S formation we started May 21st. For the time being the upside risk is for a resistance at 1.4220. On the downside 1.3907 holds as crucial floor with tentative stops at 1.3865.

GbpUsd 21 day ma support proved to be to strong for sterling bears. Trading above 1.6400 re-instates bullish trend with target of 1.6830.

UsdJpy pair is now trading squarely in daily cloud covering after stalling at 98.88. The broader theme is still bullish with a daily close above 98.50 will target 99.56. Intraday support stands at 96.20/50 area.

UsdChf sharp correction from 1.0997 (range lows) gives the pair a heavy tone with the focus now back on a retest of 1.0591 key support( june low).