Daily Report

Monday 28th May 2012

ECONOMIC NEWS
Last Weeks Events
Euro-zone: The Euro fell to its lowest level since July 2010. It traded at 1.2496 against the dollar last week. This was mainly due to fears on the Greek exit from the Euro-zone, Greeces anti-bailout Syriza party coming ahead in the polls and due to worsening situation in Spain. In the last weeks EU Economic Summit the European leaders came with no new measures to deal with the crisis. Although Greece accounts for around 2% of the Euro-zone economy, its exit would spread contagion fears about other Euro-zone countries, Portugal, Spain and Italy, in particular. PMI and Ifo data last week indicated that core European countries are also feeling the pain of recession. Over the weekend the pro-bailout parties in Greece regained the lead in the polls. Bloomberg reported that the European officials are planning to provide additional funds to troubled countries. US: The flash PMI data was worse than expected. The Housing market was better than expected, New Home Sales came at 343K vs 332K last month. The Unemployment claims came at 370K vs 372K expected. DJIA fell 0.6% to 12,454.83. FTSE 100 to 5335, Oil (WTI) closed the week at 90.86 and Gold at 1571.20. S&P 500 closed the week at 1317.

Todays Events
UK : Housing data US, France, German, Switzerland: Holiday Italy: 2.5-3B euros 2 year Bond Auction

Todays Calendar

Date Time 05/28/2012 00:01 05/28/2012 00:01 05/28/2012 00:50 05/28/2012 09:00 28-31 MAY 28-31 MAY

Country UK UK JN IT UK UK

Event Hometrack Housing Survey (MoM) Hometrack Housing Survey (YoY) Corp Service Price Index (YoY) Business Confidence Nat'wide House prices sa (MoM) Nat'wide House prices nsa(YoY)

Month MAY MAY APR MAY MAY MAY -------

Survey

Actual -------

Prior 0.10% -0.90% -0.30% 89.5 -0.20% -0.90%

Bloomberg

Daily Report

Monday 28th May 2012

TECHNICAL OVERVIEW

S&P500

If we see a break to the up side then the first target is the 1329.35 area. If we see a break to the down side then the first target is the 1304.30 area.

Daily Pivot Points

R3 R2 R1 PP S1 S2 S3 1342.87 1336.13 1325.47 1318.73 1308.07 1301.33 1290.67

Daily Report

Monday 28th May 2012

TECHNICAL OVERVIEW

EURUSD

If we see a continuation to the up side the first target will be the 1.2678 area. If it breaks to the downside the first target is a close of the gap to the 1.2515 area.

Daily Pivot Points

R3 R2 R1 PP S1 S2 S3 1.2683 1.2643 1.2577 1.2537 1.2471 1.2431 1.2365

Daily Report

Monday 28th May 2012

TECHNICAL OVERVIEW

GBPUSD
Market opened with a gap and continues with momentum towards the north side. Possible Sell positions to close the gap from 1.57175 ( weekly pivot )

Daily Pivot Points

R3 R2 R1 PP S1 S2 S3 1.57620 1.57306 1.56932 1.56608 1.56234 1.55884 1.55536

Daily Report

Monday 28th May 2012

TECHNICAL OVERVIEW

USDCHF

Possible sell opportunity at 0.9535 towards the close of gap open 0.95925 area.

Daily Pivot Points

R3 R2 R1 PP S1 S2 S3 0.96926 0.96511 0.96220 0.95805 0.95514 0.95095 0.94808