Eyes on the Citi

Seems finally the good and the bad news are evening out. So for each bad news, you have a corresponding good one squaring it. Oil is below the psychological 130. JP Morgan has beat forecasts. Google on the other hand didnt have a good show. Merrill Lynch has reported a $9.7 billion of writedowns (including $3.5 billion in CDOs) for the quarter and a net loss of $4.65 billion. This on the back of news of Goldman Sachs, the biggest U.S. securities firm, reporting earnings of almost $2.1 billion for the three months ended May 30. Morgan Stanley, the industry's second-largest company, posting $1 billion of net income for the same period.

And now the whole world awaits the results of Citi. That any bad showing by Citi will not have much of an impact on the markets as it is already assumed so, any positives out of Citi's results will definately help the markets resurrect. Citigroup reports its quarterly results today.

The impact on the forex markets have been swift. Dollar suddenly seems to have come alive. But not for the long haul. Expect it to just readjust a little. Play between 1.57 to 1.59 with a bias on 1.59 for the Euro. W.r.t. Yen, It may move a little into the 105 to 107 range, with a bias on 105.50. The good news on Citi might give better clues to the market and the forex side too. Till then. Bye.