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Daily Newsletter: 12/03/2008
By Jean-Claude Braha - ACM Advanced Currency Markets, Geneva, Switzerland
Today's Economic Calendar:
TIME (GMT) EVENT VALUE NAME CONS.
00:30 AU:Employment 0
10:30 GB:Merchandise Trade 0
15:30 US:EIA Petroleum Status Report 0
11:00 EMU:Industrial Production 0
19:00 US:Treasury Budget 0
15:00 US:Quarterly Services Survey 0
12:00 US:MBA Purchase Applications 0
12:00 US:MBA Purchase Applications 0
19:00 US:Treasury Budget 0
00:30 AU:Unemployment Rate 0
07:45 FR:CPI 0
15:30 US:EIA Petroleum Status Report 0

Full week Economic Calendar

Fed new liquidity measures lowered market expectations for a strong interest rate cut.
News and Events:
The Dollar posted sharp gains on Tuesday after the Federal Reserve announced new measures to inject liquidity into the financial system, easing concerns about a deepening credit crisis and a US recession. The Dollar surged against the Yen and Swiss franc after the Fed said it would lend primary dealers up to $200 bio in Treasury securities and allow them to use agency and mortgage debt as collateral. It also rebounded from a record low against the Euro following the announcement of the liquidity measures, which will be coordinated with other central banks.
The Fed's action cooled market expectations for a sharp interest rate cut at the US central bank's March 18 policy meeting, and that took some pressure off the Dollar. US interest rate futures were pricing in, before the Fed move, a 64% chance that the Fed will cut its benchmark rate to 2.25% from 3% next week.
Henry Paulson said long-term US economic fundamentals remained strong.
ECB board member Axel Weber hinted that the ECB had no room to cut interest rates, saying German inflation remained a concern.
Read Today's Key Issues and The Risk Today




Resistance and Support:
EURUSD GBPUSD USDJPY USDCHF
1.5600 T 2.0577 T 110.10 T 1.1500 P
1.5495 S 2.0447 S 108.00 K 1.1130 S
1.5462 M 2.0140 M 105.00 S 1.0761 M
1.5385 2.0115 103.05 1.0285
1.5283 M 2.0100 K 101.68 S 1.0200 S
1.5000 K 2.0000 P 101.42 M 1.0134 M
1.4500 P 1.9630 K 101.22 T 1.0000 K
S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot


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