Global markets felt a blow on Friday

Global markets felt a blow on Friday as additional news hit the boards showing investors that the financial markets have not yet stabilized. JP Morgan Chase & Co and the Fed said that they would bail out Bear Stearns with emergency funding for an initial period of up to 28 days. The news sent the stock plummeting to close the session down by 47%. Despite the bad news, inflation data showed gave investors some relief while Michigan Consumer Sentiment came out slightly higher than expected. The relatively good results only gave Stocks some minor support as investors remained worried throughout the session that further bail outs will be seen in the near future. The U.S stock market indices closed the session down by an average of 2%.

The dollar traded mixed across the board on Friday, as traders flew to higher yielding currencies and carry traders rushed to close positions sending the USD/JPY below 100. Crude oil managed to creep higher during the session but came back down to close at $108.74 per barrel. Gold closed the session just under the $1000 mark at $999.5.

Early this morning the Fed surprised the markets yet again by lowering its discount rate by 0.25% to bring it down to 3.25%. The sudden move raised volatility on the currencies sending carry trades even lower. The Feds main goal at the moment is to prevent further problems in global financial firms.

Looking forward, a wave of data from the U.S will continue to dominate the economic calendar today. In addition traders will keep an eye out for retail sales from Switzerland.

 
Euro | Japanese Yen | British Pound

 
Euro
 
After opening the session in Asia at $1.5622, the Euro traded mixed throughout most of the session. Mixed data from the U.S only helped the Euro gain strength allowing it to touch an intraday high of $1.5450. The Euro/usd managed to hold on to its gains to close the session at $1.5668. 

Support: 1.5730, 1.5680, 1.5600 
Resistance: 1.5850, 1.5900, 1.6000 
 
Euro | Japanese Yen | British Pound

 
Japanese Yen
 
The Yen experienced selling throughout most of the session after opening above 100 at ¥100.40. Trader’s sentiment was felt on this pair as it broke below psychological support levels of 100 to close the session at ¥99.32.

Support: 96.50, 96.00, 95.50 
Resistance: 99.00, 99.50, 100.00 
 
Euro | Japanese Yen | British Pound

 
British Pound
 
After opening at $2.0319 this pair range traded up until the beginning of the U.S equity session. After touching an intraday high of $2.0383the pound lost its strength as it came down to $2.0184. The Pound closed the session with modest losses at $2.0216.

Support: 2.0000, 1.9950, 1.9900 
Resistance: 2.0150, 2.0200, 2.0250 
 
Euro | Japanese Yen | British Pound