GOOD MORNING!

COMMODITIES
Crude (81.24) fell sharply and recored a low of 80.16 yesterday. The stronger dollar, profit booking and the expectations of an increase in US Crude inventories, the data for which is due today pulled down the price. Though it is continuing to trade above 80 and has bounced back from yesterday's low, much strength is seen on its upmove to break above the previous high of 83.95 (11-Jan-10). The EIA's US Crude inventory data release is due today.

Gold (1121.80) is continuing to trade lower. The stronger dollar is retaining the downside pressure. However, it is trading well within the range of 1100-50 which we have been mentioning for some time. This side ways move between 1100-50 is expected to continue. Incase of a break below 1100 we might look for a little broader range of 1080-1150.

CURRENCIES
The Euro (1.3594), is expected to remain pressured on the downside with immediate Resistance at 1.3630, though has bounced back from yesterday's low of 1.3537. Dollar-Yen (89.98) is continuing to trade below 90 and is retaining the overall downtrend. Euro-Yen Cross (122.34) is also looking weak with an immediate Resistance at 123.


The Pound (1.4965) has broken below the significant Support at 1.50-1.4975 region mentioned yesterday and is looking bearish for a further fall to 1.4850. Aussie (0.9146) is gaining upside momentum and might rise towards 0.9180-0.9200 today. Swiss (1.0753) is holding on to its Support at 1.07 and continuing to remain bullish.

The Korean Won is trading near 1133 and the Sing dollar is trading near 1.3987. Dollar-Rupee has closed at 45.62/63 yesterday.

INTEREST RATES
The 3M USD LIBOR was unchanged at 0.25%. The 2Y and 10Y benchmark yields have decreased 1 bp to quote at 0.87% and 3.69% respectively.

DATA TODAY
No major data release today.

Data Yesterday
UK Feb Trade Balance
...Actual $ -8 Bln...Previous $ -7.3 Bln