Euro Currency (ECM8):

The EC opened lower at 1.5315 and retraced to a morning Lo of 1.5285 after the ECB decided to keep rates 'unchanged' at 4.00%. Pressure from a higher Dollar, after the better than expected Jobless Claims report showing a decrease of 18,000 fewer on unemployment rolls weighed on the EC. Prices rebounded to a morning Hi of 1.5415 after ECB President Trichet's comments were 'hawkish' on keeping a close watch on the CPI until inflationary pressures decrease to a comfortable level. Prices traded lower into the close as some traders took profit/risk off the table ahead off the weekend, with the EC ending the session at 1.5375, up 40 tics. The s/t trend remains 'negative' w/ weak momentum indicators. The DX may go higher and could close the yield gap, especially w/ many analysts suggesting the 'worst' may be over for the U.S. economy as the EU slows. A higher open should find Resistance at 1.5427 and 1.5480, while an open below 1.5358 may find Support at 1.5305 and 1.5236.

Dollar Index (DXM8):

The DX opened higher at 73.80 and rose to a morning Hi at our initial Resistance level of 73.94 after a better than expected Jobless Claims report, showing a decrease of -18,000 on the unemloyment rolls. Prices retraced to a morning Lo of 73.43 and bounced to our Pivot level of 73.61 as we begin afternoon trading. The DX traded in a tight range into the close and ended the session at 73.66, flat. The s/t trend remains 'positive' w/ 'firm' momentum indicators. Will the economy be pulled 'down' by higher energy & food (not included in core inflation) or cling by its 'fingernails' and claw back to a snails pace? Tough to talk about raising rates, but the Fed may have to continue to pull another rabbit out of its hat to keep the economy out of an 'official' recession. A lower open may find Support at 73.37 and 73.08, while an open above 73.72 should find Resistance at 74.00 and 74.34.

British Pound (BPM8):

The BP opened higher at 1.9495 as the BoE left rates 'unchanged' at 5.00%. Prices dipped to a morning Lo of 1.9473 as the DX moved higher on better Jobless Claims. Prices bounced to a morning Hi of 1.9569, before sliding into the afternoon session and continuing down to a daily Lo of 1.9473, before closing at 1.9478, up 6 tics. The s/t trend remains 'negative' w/ weak momentum indicators. The BoE quarterly 'Inflation Report' coming out on May 14th will give a good indication of when or if the MPC will cut rates in June. Some traders took the opportunity to sell the rally ahead of what they suspect will show the economy needs some economic stimulus. A lower open may find Support at 1.9448 and 1.9418, while an open above 1.9503 should find Resistance at 1.9533 and 1.9588.

Canadian Dollar (CDM8):

The CD opened lower at .9858 and slid to a morning Lo of .9851 on a weaker than expected decrease in Housing Starts, down -12% and anticipation of a 'weak' job report on Friday. Prices bounced to a morning Hi of .9892, before sliding back to a mid-day lo of .9837, as we enter the afternoon session as traders took further 'risk' off the table, sending prices to a daily Lo of .9819 and ending the session at .9822, down 108 tics. The close below the 9-day MA changes the s/t trend to 'negative' w/ weaker momentum indicators. Higher oil and commodity prices lent some support, but not enough to cover a weaker than expected 'jobs report' on Friday. A lower open may find Support at .9797 and .9773, while an open above .9844 should find Resistance at .9868 and .9915.

Japanese Yen (JYM8):

The JY opened higher at .9602 and slid to a morning Lo of .9592, before rebounding to a morning Hi of .9691. Prices drifted lower as we enter the afternoon session, but rose into the close to end the day at .9634, up 77 tics. The close above the 9-day MA changes the s/t trend to 'positive' w/ improving momentum indicators. A lower open may find Support at .9597 and .9561, while an open above .9639 should find Resistance at .9675 and .9717.