Market Update - 8 April 2013

• Markets were mixed and disappointed given the data from last Friday. Non-farm payrolls printed a weak 88K in March but the unemployment rate fell to 7.6%. Canadian unemployment was terrible, jumping to 7.2% from 7.0%, while also losing 55,000 jobs in March.

• USDMYR opened this morning lower at 3.0600 with favours to sell on rallies, meaning we expect upside on USDMYR to be capped. We can’t explain why is MYR so strong as well. 3.0500 will still be a key support level for now, a firm break could see us head towards 3.0300, but if 3.0500 holds, then we could see the range of 3.0500-3.0800 hold.

• USDJPY has been one heck of a move, moving from 93.50 to 98.50! That’s 5.5% move in just 2 days. Although the pair is pretty bullish,we reckon we won’t see it storm past 100.00, we still reckon it will be an orderly pullback before resuming a trend higher.
  
  Some news from Robert Kuok’s news firm the South China Morning Post, of course the Chinese won’t go quietly with the Japanese weakening the Yen so aggresively -- Many of China's top economists are livid at what they view as an effective currency devaluation by Japan and are calling on the People's Bank of China to retaliate by weakening the Yuan to defend itself in what they see as a new currency war.

• Cyprus confirmed that capital controls would remain in place for another 7 days, €10K per month for businesses and €2K for individuals on top of the €300 daily limit on cash withdrawals and govt approval for payments over €25k. - ICAP