NEWS / Foreign Exchange

European Forex Recap

F/X Solutions

European Forex Recap

Date:  Tuesday, March 27, 2007 12.00am until 7.00am EST

Market Recap:

In earlier news

The Dow Jones Industrial Average was down 11.94 closing at 12,469.07 on Monday.

• Opening levels:-GBP/USD 1.9683/88  EUR/USD 1.3326/29  USD/JPY 118.16/19  USD/CHF 1.2164/68  USD/CAD 10.1598/03  AUD/USD 0.8086/90  NZD/USD 0.7169/73 (11.00am EST)
• Japan??™s Nikkei 225 closed Tuesday down by 156.91 at 17,365-05 (2.00am EST)
• German Ifo business sentiment for March 107.70, business current conditions 112.4 and business expectations at 103.2. The numbers were a lot stronger than expected causing Euro-dollar to rise 10 pips to 1.3347 (4.00am EST)
• Euro crosses also higher across the board following the Ifo release.
• Ifo??™s Nerb in post Ifo release comments saying that the ECB should keep interest rates at current levels for a while time to come and that the exchange rate should help to dampen inflation (4.20am EST)
• Mortgage approvals in the UK rose from 42,804 in January to 54,859 in February and remortgage approvals rose to 66,338 in February from 48,836 the previous month. Cable on the news unchanged at 1.9675 (4.30am EST)
• UK Q4 business investment +45% q/q +13.5% y/y (4.35am EST)
• Cable coming under pressure falling to a session low of 1.9620 (5.30am EST)
• Closing levels:-GBP/USD 1.9637/42  EUR/USD 1.3338/41  USD/JPY 118.26/29  USD/CHF 1.2147/51  USD/CAD 1.1572/77  AUD/USD 0.8084/88  NZD/USD 0.7174/78 (7.00am EST)

Economic data due out later today

10.00am US Conference Board report on Consumer Confidence for March

Session Ranges

GBP / USD:                 1-9620             1-9696

EUR / USD:                 1-3323             1-3353

USD / JPY:                  117-90             118-35

USD / CHF:                 1-2131             1-2166

USD / CAD                 1.1558             1.1605

AUD / USD                 0-8068             0-8108

NZD / USD                 0-7160             0-7186