Today's Market Update

London Session
Published: April 17, 2009 8:04 AM

The London session saw risk pared despite yet another better than expected earnings report from a major US financial institution. The fact that this included $45 billion of government bailout money was not lost on the market and US stock futures remain in the red in early NY here. Gold remains under pressure while below the 873 short-term pivot. Below the recent 865 lows should open up potential towards 850 next.

Euro was punished overnight as dovish comments from ECB President Trichet couple with yet another credit downgrade on the horizon weighed on the currency. Trichet commented that saying the euro is weak does not reflect the current situation and that he appreciates US comments that a strong dollar is in its interests. If this wasn't bad enough, Moody's credit rating service placed Ireland on review for a potential cut of its Aaa rating. This saw EUR/USD finally make an earnest move through the 1.3090 lows of last week. Now a close below the 55-day moving average at 1.3022 would not be constructive for the pair.

CHF was also one of the bigger movers overnight as the SNB announced it plans to continue intervening in the FX market if the need arises. Swiss central bank President Roth said that already bleak exports will continue to fall and that the bank will ''continue to act in a decisive way if there's a similar development of a franc appreciation''. EUR/CHF rallied 70 pips despite overall euro weakness towards 1.5220 while USD/CHF jumped more than 100 points into the 1.1670 area.