Positive GDP expectations, earnings data are building risk appetite

!! Market Brief !!
Asian stocks advanced, erasing losses as investor confidence rose in
the global economic conditions, MSCI Asia Pacific Index rose 0.9%,
Nikkei rose 1.15%, Hang Seng rose 0.5% while Shanghai Composite
dropped 0.7% as US stocks rallied yesterday on optimism on the US
economic recovery conditions. We are expecting GDP figures from US and
South Korea to expand while UK figures could show a contraction and
the BOJ raised its growth forecast while maintaining interest rates
adding to yesterday's positive EU data giving further impetus to
risk appetite. Earnings report showed Texas Instruments showed 44%
growth in Q4 profits while Johnson & Johnson are to release earnings
report today.

The EURUSD moved towards a 2-month high to 1.3684 as Fed policy makers
meet today on a two-day meeting amid speculation that the US growth
won't be enough to tighten monetary policy. The Dollar has been weak
against majority of currencies as data would probably show home prices
dropped the most since December 2009 while GDP has accelerated. AUDUSD
dropped to trade at 0.9927 as inflation rose 0.4% (exp. 0.7%) lower
than estimate, slowest in two-years as strong currency lowered cost
for goods and as investors bet that the RBA will delay hike in
interest rates till H2 2011.

South Korea's GDP is expected to grow 4.6% in Q4 2010 (prev. 4.4%),
US GDP expected to grow 3.5% in Q4 2010 (prev. 2.6%) while Japan
estimates GDP grew 3.3% (prev. 2.1%) when data is released this week
and the BOJ kept interest rates unchanged at 0.1% and maintained the
size of stimulus plan unchanged at 5 trillion Yen. Reports of French
consumer spending to rise and Spanish PPI accelerated to be released
today could see further gain in the Euro and the EFSF sells bonds to
raise 5 Billion Euro to help pay for Irish bailout.

UK releases GDP report, public finance borrowing, Canada releases
inflation report while US releases home price index, consumer
confidence and manufacturing data from the Richmond area.

!! Currency Tech !!
*EURUSD*
R 2: 1.3786
R 1: 1.3740
CURRENT: 1.3663
S 1: 1.3540
S 2: 1.3450
*GBPUSD*
R 2: 1.6059
R 1: 1.6040
CURRENT: 1.5958
S 1: 1.5922
S 2: 1.5869
*USDJPY*
R 2: 3.15
R 1: 2.90
CURRENT: 82.99
S 1: 2.53
S 2: 2.00
*AUDUSD*
R 2: .0077
R 1: .0025
CURRENT: 0.9976
S 1: .9865
S 2: .9833
* S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
Source: Fxstreet.com