U.S. Dollar Trading (USD) traded higher with US stocks tumbling after negative leads from the Asian and European sessions. Relentless USD buying helped the Euro to crack 1.3000 and dragged the Aussie over 2 cents lower to break through 0.7000. US banks led the market down with profit taking on the recent rally turning into a rout. Bank of America fell 20% while Crude was down 9%. Crude Oil closed down $4.45 ending the New York session at $45.88 per barrel. In US share markets, the Nasdaq was down 64 points or -3.88% whilst the Dow Jones was down 289 points or 3.56%. Looking ahead, Treasury Sec Geithner Speaks and the Bank of Canada releases Interest Rate Statement.
· The Euro (EUR) broke through 1.300 in Asia after Trichet’s comments of the state of the Eurozone economy left a sour taste and risk aversion prompted heavy EUR/JPY selling. The closer to Quantitative easing and the lack of clarity and solidarity within the ECB is taking a toll on the Euro. Overall the EUR/USD traded with a low of 1.2891 and a high of 1.3070 before closing at 1.2930. Looking ahead, April German Zew Survey forecast at -90 vs. -89.4 previously. Also released, German PPI (Mar) forecast at -0.3% vs. -0.5% previously.
· The Japanese Yen (JPY) reclaimed the number one safe haven currency position with USD/JPY easing during the day from above 99 to below 98. The failure to continue gains above 100 and the sharp sell off in equities has cast a heavy shadow on the USD/JPY and most crosses came off hard. CAD/JPY and AUD/JPY were the worst affected with the sharp fall in commodities also weighing on these pairs. Overall the USDJPY traded with a low of 98.54 and a high of 99.59 before closing the day around 99.40 in the New York session. Looking ahead, March Trade Balance forecast at -5Bn vs. 82.4 previously.
· The Sterling (GBP) fell sharply with the Euro early in Asia as concern of over the weekend about the UK government’s debt position and banking worries weighed heavily. Selling continued into Europe after EUR/GBP broke higher and GBP/JPY selling intensified. Overall the GBP/USD traded with a low of 1.4812 and a high of 1.4504 before closing the day at 1.4535 in the New York session. Looking ahead, CPI (Mar) forecast at 0.2% vs. 0.9% previously.
· The Australian Dollar (AUD) fell sharply all day as multiple key support levels were broken. Opening up above 0.7200 was short lived as Asian stocks immediately turned negative prompting traders to take profits and make fresh shorts. AUD/JPY selling led the way lower with the key 70 Yen level breaking in Europe. The US session offered little help with the crash in Oil prices sending the AUD/USD below 0.7000 for the first time since April 2nd. Overall the AUD/USD traded with a low of 0.6956 and a high of 0.7247 before closing the US session at 0.6965. Looking ahead, RBA minutes from the April meeting.
· Gold (XAU) found support as safe haven demand notched higher and slumping banking stocks increased systemic risk in the economy. Overall trading with a low of USD$865 and high of USD$888 before ending the New York session at USD$884 an ounce.

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Revenue for 2008 was US$313,628,084 which almost doubled from 2007’s yearly revenue of US$ 175,773,888, an increase of 78%.
These are consolidated results for FXCM Holdings, LLC, which is composed of Forex Trading LLC; Forex Capital Markets LLC; Forex Capital Markets LTD; FXCM Australia LTD; FXCM Asia LTD; and FXCM Canada LTD.
FXCM’s 2008 Milestones:
Total new accounts opened during the year on FXCM’s platforms increased by 66% year-over-year.
Notional USD volume across FXCM’s trading platforms was US$6.8 trillion in 2008.
EBITDA for 2008 was US$131,954,102, an increase of 365% year-over-year.
FXCM expects 2009 to be a year of continued growth as a result of the company increasing its market share, and the sustained growth of the retail forex industry. FXCM believes it will win business by continuing to develop new products based on client segmentation, offering competitive spreads, and regionalizing and expanding its offerings across the globe.

The GBP/USD has reached the next step in its progression higher today (Tuesday). The pair has reached the 38.2% target resistance level at the 1.4696 level. Stops pushed the pair to 1.4707 but the price has backed off back below the level on profit taking.
A move back above level again would target the 50% retracement where the 50% , 100 and 200 hour moving average are all located. That level comes in at 1.4767 currently.
Corrections should find support at the 1.4650-56 level with stops if the price moves below 1.4647.

The 38.2% retracment of the move down from the high at 0.7324 to the low at 0.6952 comes in at the 0.7094 level.
The AUD/USD has been supported today by upbeat comments from RBA Stevens last night. He commented that he sees a clear signs of pick up in China’s economy and that the speed of the global contraction may be abating.
As a result, the AUD/USD has been moving higher despite the fact that the CRB has been down today. A break of the 0.7094 would target the 50% retracement and 100 hour MA at the 0.7140 area.

Pivot: 102.5
Our preference: Short positions below 102.5 with targets @ 96.5 & 93.6 in extension.
Alternative scenario: Above 102.5 look for further upside with 105 & 107.5 as targets.
Comment: the RSI is bearish and called for further decline, the pair should reach its next support.
107.5105102.598.06 (last)96.593.691.6
*USD/JPY Index: the ISE Exchange measures the strength and weakness of the US DOLLAR versus the JAPANESE YEN. For details go to www.ise.com

Resistance3:107.5

Resistance2:105

Resistance1:102.5

Last:98.06 Pivot:102.5

Support1:96.5

Support2:93.6

Support3:91.6

The EUR/USD rallied earlier today (Tuesday), resulting in some consolidation following the large selloff. The strength in the EUR/USD came in reaction to better than expected consumer sentiment data in both Germany and the EU as a whole. However, the rally is losing steam already as the currency pair gives into U.S. equities. Earnings are flooding the U.S. market before the bell, and the results are negative for the most part. Therefore, it seems the positive consumer sentiment numbers won’t be game changing for the EUR/USD.
Investors are more focused on future ECB policy with public discord among its members. Additionally, if U.S. equities lose their footing, investors will likely attach the EUR/USD to the S&P futures since investors believe whatever happens in the U.S. will bleed over into the EU economy due to tight economic coupling. The EUR/USD has already dropped through some key fundamental safety nets. The currency pair is turning its back on the highly psychological 1.30 level, a large victory for the downtrend.
However, as we described in our previous posts, the EUR/USD has some solid supports built up from the condensed trading ranges between February and March. Therefore, even if the near-term selloff should continue, there should be intense battlegrounds from 1.25-1.28. The EUR/USD has found support in our previous 1st tier uptrend line and we created a new 1st tier to show the next uptrend cushion. We maintain our negative stance on the EUR/USD for the time being since the S&P futures look like they have more room to give to the downside. However, the EUR/USD could experience relative strength if U.S. equities proceed to selloff due to the better expected consumer sentiment data.
Fundamentally, we maintain our supports of 1.2919, 1.2876, 1.2833, and 1.2800 with fresh bottom-end of 1.2756. To the topside, our 1.2953 support turns resistance while we hold our resistances of 1.3017, 1.3050, 1.3091, and 1.3126. The 1.30 area still serves as a psychological barrier with 1.25 becoming a key psychological cushion. The EUR/USD is currently exchanging at 1.2927.

European Economics Preview: UK Annual Inflation Forecast To Ease
UK consumer prices and German ZEW economic sentiment survey results are due on Tuesday.
At 2.00am ET, the German producer prices report is expected from the Federal Statistical Office. On a yearly basis, producer prices are forecast to rise only 0.1% in March compared to a 0.9% rise in February. From February, producer prices are predicted to drop 0.3%.
The Swedish central bank is scheduled to announce its interest rate decision at 3.30am ET. The Riksbank is expected to cut the interest rate to a record low of 0.5%. The Riksbank is also set to publish how the individual members of the Executive Board voted at the same time as the monetary policy decision is communicated.
Afterwards, the Italian statistical office ISTAT is slated to release February's trade balance at 4.00am ET. The total trade surplus stood at EUR 3.58 billion in January.
At 4.30am ET, the British CPI data is due from Office for National Statistics. Annual inflation is forecast to ease to 2.9% in March from 3.2% in February. Economists expect a month-on-month increase of 0.2%.
After remaining flat in February, UK retail prices are predicted to fall 0.5% in March from the previous year. Excluding mortgage interest payments, retail prices are expected to rise 2.2% annually.
Thereafter, German ZEW survey results are due at 5.00am ET. Economic sentiment in the largest Eurozone economy is seen at 2 in April, reversing a negative reading of 3.5 in March. Meanwhile, the current situation index is forecast to fall to minus 90 in April from minus 89.4 last month

The EUR/USD is inching higher as the consolidation/correction continues. The high for the day reached 1.2989 the low, reached in the Tokyo session reached 1.2897. The low reached yesterday on the move lower from the recent highs reached 1.2888.
The current price is above the 100 and 200 bar moving average on the 5 minute chart giving a bullish bias intraday. That level comes in at 1.2936 to 1.2943 currently. However, with the price still well below the 100 hour MA at the 1.3070 level, the short term bullish bias is just corrective in nature.

We were in New York City in the summer of 2008. While walking in Little Italy to the Financial District we encountered a construction worker giving away large metal framed photos instead of throwing them in the dumpster. He said they were remodeling an architectural firm and these old photos were from a design the firm did of a stock exchange. The old American Stock Exchange trading floor. Probably in the mid-1980's. It is located at 86 Trinity Place, NY, NY.