Daily Coffee Market Outlook

NY- Sell (2)- Yesterdays ECB and BOE rate announcements threw up little in the way of surprises yesterday with both central banks reiterating their current stance. Stocks rallied accross the board following a US report which said jobless claims dropped from a 3 month high, defusing concern that the US recovery is slowing. The USD rallied, inevitably affecting NY 'C' to the downside. The months highlight of US Non-farm data should shed more light on the state of the job market, what the global recovery hinges on. May held just above support at 130 at settlement last night; we expect another challenge today with a stronger USD. A close below 130 will open the door to 124. To the upside, 133.5 and 137 remain the resistance levels.

Liffe- Sell (2)- LDN struggled yesterday following Wednesdays close below the 1280 trigger and a stronger greenback. Amid light volume and lack of buyers, May slid below key support at 1250 before bottom pickers lifted it slightly to settle at 1249. Technically speaking, this should lead to more programme selling, although profit taking by shorts may provide a floor. We see further losses in the short to medium term then, but look to the USD for further guidance. Resistance lies at 1280, 1300 and 1335, but there is little prospect of any of these levels being challenged today.