The dollar shot higher in Tokyo trade, rising beyond key resistance at 1.0675 cents to the euro and 120.20 yen. News that US troops have taken up positions deep inside of Baghdad's Presidential Palace without significant resistance has helped both the dollar and US equity futures higher this morning. Equity futures are now pressing up against the previous week's highs reached in the cash market. Above this resistance should see further buying helping fuel more gains during the week. With US troops controlling Baghdad's international airport and encircling the Iraqi capital, prospects of a quick end to the war have been raised. Nevertheless, as coalition troops prepare to topple Baghdad, it cannot be ignored that the toughest fighting may still lie ahead - potentially resulting in a large number of coalition casualties. European data include UK industrial production data for February which is seen falling 0.1% after a similar decline the previous month. Manufacturing output is seen falling 0.3% after a 0.3% rise, bringing the yearly rate to negative 1.1% from down 0.3%. No key data expected from the US today.
EuroFX
EUR/USD fell below critical support at 1.0720, the 38.2% of last month's decline, which led to a break of 1.0675, the 61.8% retracement of the 1.05-1.0960 rally. The euro is now trying to hold around the 1.0660 level. Below here aims for 1.05. Interim resistance eyed at 1.0720.
USD/CHF broke back above 1.3835 on Friday, which marks the key 61.8% of the decline from 1.4040-1.3485. Today's high of 1.3985 is, just shy of last month's high of 1.4040, which now marks key resistance. Support is now seen at 1.3935.
GBP/USD continued to lead to the downside after falling below critical T/L support at 1.5650 last week and now just above last month's low of 1.5535. Resistance eyed at 1.5650 which marks the 61.8% retracement of the 1.5535-1.5835 rally. Below 1.5535 targets the key 1.54 level.//www.forexnews.com