Currency Tech AUDUSD R 2: 0.8520 R 1: 0.8379 CURRENT: 0.8228 S 1: 0.8090 S 2: 0.7925 USDCAD R 2: 1.1225 R 1: 1.1010 CURRENT: 1.0865 S 1: 1.0750 S 2: 1.0545 EURJPY R 2: 136.90 R 1: 136.10 CURRENT: 133.83 S 1: 132.10 S 2: 131.60 USDMXN R 2: 13.645 R 1: 13.415 CURRENT: 13.222 S 1: 13.135 S 2: 13.059 Market Brief Risk appetite returned to the market overnight following the release of positive data in Japanese manufacturing. The dollar fell against most majors as investors grew optimistic. The EurUsd gained 36pts after finding support at 1.40, while the UsdJpy gained 60pips to the upper range of 95. The GbpUsd was one of the strongest movers after .80% momentum drove the cable near 1.65 as a major point of resistance. Equity markets rose in the U.S. and Europe, with the Dow up by 1.82% or 165.38pts and the FTSE higher by 1.85% or 84.08pts. The yield curve steepened slightly with 10 and 30 year bonds positive by .039 and .020. Commodities were up across the board with oil finding support at $65bbl and gold moving above $936oz. The risk rally returned to financial markets today as the dollar and yen saw a snap in their three day uptrend following a positive Japanese manufacturing report released overnight and better equities. Factory output in Japan rose 2.4% in June from the previous month, sending the yen up .42% to 95.46 and the dollar index to a low of 79.18. The dollar rose briefly as US jobless claims came in slightly above expectations at 584,000 versus 554,000, but then continued to fall as the Dow rallied as much as 175pts. Positive news in the Eurozone began with a rise in the executive and consumer sentiment index which reached 76, a high not seen since November of last year. The unemployment rate in Germany was .1% lower arriving at 8.3, and the change in unemployment was better-than-expected coming in at -6.0 versus 45.0 forecasted. Although investor sentiment was slightly offset by an employment drop to -36, labor force related news sent the euro up above 1.40. In the U.K., the pound rose .8% above 1.65 as home prices increased for a third month by 1.3%. With yesterday’s mortgage approvals hitting 14 months high’s, there seems to be more support behind the theory that the housing market has bottomed. The New Zealand kiwi fell the most in three weeks after the central bank decided to keep its primary interest rate unchanged at 2.5%. By contrast, the Canadian dollar rose as the TSX rallied 194pts and Canadian industrial price index rose .1% after a 1.1% drop in May and NYMEX WTI crude is trading near $67bbl with September futures up 5% at $6.50bbl.

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