Sunday Session Starts Slowly

Overall, the currency market moved very slowly during the Asian session. The only exception was the aussie, which already plunged 60 pips from news items over the weekend. Ahead, the release calendar is very light on Monday, which may further allow the majors to advance against the greenback, if the green-shots theory continues to stay present in the overall market's sentiment.

The Euro (Eur/Usd) is trading near the highest value touched in the last six weeks of trading. The euro appreciated over the last period as investors considered the pace of contraction in the global economy had stalled, something that made the dollar less appealing. Later this week, a release is expected to show that the Euro-area economy contracted 2.1% in the first quarter.

The Pound (Gbp/Usd) started the Sunday session near Friday's high, and at the same time near the highest value touched over the last few months of trading. In the first stages of the credit crisis, the pound was sold off very strongly; reflecting the poor state of the U.K. economy, but now the pair's outlook is starting to look better than expected.

The Aussie (Aud/Usd) declined strongly tonight, even though the rest of the majors moved very little until now. The pair fell 60 pips, declining for the first time in the last 10 day of trading. Currently, the pair is trading above all of the important moving averages.

The Cad (Usd/Cad) opened the Sunday session just above the 1.1500 area, where the pair bottomed in November 2008. If the cad finds the strength to break any lower, the road is clear for the pair to move towards the 1.0700 area. Crude oil is currently trading at the highest value in the last six months, something that should drive the cad lower.

The Swissy (Usd/Chf) moved very little tonight, during the Sunday session. The swissy is currently trading near the lowest value touched since January, after it plunged more than 550 pips over the last three weeks of trading. However, the swissy's downtrend may be ending, since last week the Chairman of the SNB expressed again its disapproval about the Swiss franc's strength.

The Yen (Usd/Yen) started the Sunday session once again above the swing area formed by the 20, 50 and 200-day moving averages. The pair headed lower tonight, extending the downtrend experienced during the Friday's U.S. session, when the yen declined 110 pips.

Asian Markets Post Small Declines

Current Futures: Dow -48.00, S&P -6.10, NASDAQ -11.25

Asian markets trade barely below the breakeven line, erasing the gains posted during the opening bell. At the same time, U.S. futures also declined.

The Asian financial markets turned bearish after Toyota said its losses would widen to $5.50 billion this year, on weaker domestic and external demand. Toyota's outlook is twice as bad as the initial estimates, but is inline with the overall industry reports. However, the market withstood the declines seen in the car industry from being helped by the raw material producers and the financial sector. Commodity stocks gained a lot of ground over the last few days of trading, as crude oil reached the highest value since November 2008.

For now, the Asian markets are sitting at the highest value in the last seven months, helped by the strong gains seen in March and April. In these two months, the major indexes from the region gained almost 40%, as positive economic news feed the investors' hope that the economy is reviving. Moreover, TheLFB-Forex.com Trade Team notes that the Chinese economy has experienced only limited affects from the credit crisis until now, which further strengthened the equity rally in the area. “China is one of the biggest economies in the region, and has the strength to influence the demand side from its neighbor countries, like Japan and South Korea or Taiwan,” they added. “The additional demand coming from China helped some companies water the credit crisis with more ease, since China is responsible for large bulk of orders in the region.”

Overnight, the Japanese Nikkei declined 9.63 points (0.10%) to 9,423.20. The Australian S&P/Asx slipped 15.90 points (0.40%) to 3,925.80.

Crude oil for May delivery was recently trading at $58.40 per barrel, down by $0.20.

Gold for May delivery was recently trading higher by $0.80 to $915.65.

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Jobs Prompt Shift to Riskier Assets

The dollar whipsawed against the majors in early Friday trading following a key US labor report released for April. Traders initially bid the dollar higher on a better than expected reading in April non-farm payrolls, which improved by more than forecast, posting a loss of 539k jobs compared with calls for a loss of 600k payrolls versus an upwardly revised 699k loss in March. The April unemployment rate was in line with expectations, climbing to a fresh 25-year high at 8.9%, up from 8.5% from March. The better than anticipated payrolls figure prompted a move toward riskier assets as traders pushed the euro to a fresh one-month high against the greenback to the 1.36-level.

US equities climbed higher with the Dow Jones and S&P 500 higher by over 1% on a combination of sentiment that the recession may be moderating and the results from yesterday’s government bank stress tests. Crude oil and spot gold also climbed higher in the Friday session.

Euro Flirts with 1.36

Traders continue to bolster the euro, which edged above the 1.36-level versus the dollar and the 134-handle against the yen. Germany’s March industrial production was better than expected with a flat reading versus a 2.9% decline a month prior.

The euro touched the 1.36-level against the dollar amid a shift to riskier assets, its highest level since late March. Support starts at 1.3560, followed by 1.3530 and 1.35. Additional floors will emerge at 1.3470, backed by 1.3440 and 1.34. Gains will target resistance at 1.36, followed by 1.3640 and 1.3670. Subsequent ceilings are eyed at 1.37, backed by 1.3750 and 1.38.

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Overview currency pair

In general, the dollar and the yen has continued to increase during the meeting that the market is still in fashion risk aversion. The sharp decline was in Aussie and books, two of the three currencies as the market expects the central bank cut interest rates later this week. The third coin with a rate cut decision this week is the euro.

In the U.S. economic data, Igedo NSTITUT Supply Management said that the Vercontract manufacturing of Tel fastest pace in 25 years during the month of November. E 'was the fourth month of decline for the sector.

The NBER announced the U.S. economy into a recession in December 2007. "The Commission noted that the decline in economic activity in 2008, met the standard for a recession," the group said in a statement on its website. The decline of 1.2 million jobs so far this year was the most important factor in determining the start of contraction, said the group.

Federal Reserve Chairman Ben Bernanke has einigeni deiDet the Fed Optionscould use to support liquidity and lending in a speech today. One option is for the Fed to buy long-term Treasury and agency securities on the open market in substantial quantities, "said Bernanke." This approach could affect the performance of these values, in aggregate demand. "

Last week, the Fed announced a new service for the purchase of up to 600 billion of debt issued, the von companies or charter GOBIERNO Housing Finance. Mortgage rates fell last week after the announcement of Bernanke and took care of that Noo, in his speech today. "It is encouraging that the announcement that the complaint was from a decline in mortgage rates," said Bernanke