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Highlights Bidding For EURUSD Into 1.2600 Support G-20 Disappoints - S&P Lower, USD Higher EURUSD Threatening 1.2750 Trendline Resistance

Friday, August 1, 2008 - New York Update - 9:22 AM EST Traders, a slightly USD-positive report, but thus far the markets reactions have indicted a very mixed bag. Here are 3 minute charts of the 6-major markets during NFP. Most notably, oil strength following the report was capping any significant USD gains below EURUSD 1.5520. The bond market is weak, sending interest rates higher, which also supports a higher USD (mostly against Yen). But the 10 year treasury is sitting right on top of 114.20 support, limiting further USDJPY gains. Lastly, EURUSD is just sitting on the ledge's edge with his/her feet dangling over the side contemplating the next move. The decision at 1.5525-50 will need to made soon. And I as I mentioned above, oil strength above $122.00 is preventing further USD gains and I am inclined to think the next move is for a higher Euro. As I mentioned yesterday, I am headed to islands on vacation and our research team is going to cover me while I am away. Enjoy your weekend. TG.

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The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.