The Dollar back on the defensive, 1.3750 is a key area.

[RTFX-Trading]

The Dollar back on the defensive, 1.3750 is a key area.

What’s new?
Japan: Nikkei higher following less mediocre machine tools orders data.
United States: Sharp rise in weekly unemployment registrations.
United States: General Motors seek bankruptcy comparable to that of Chrysler.
United States: Better than expected producer prices (+0.30%).
Spain: Unprecedented decline in GDP in the last 50 years.
Switzerland: Producer prices index increased by 3.60% in April over a year.

Today:
08h45 France: GDP Q1, exp -1.20%, previous -1.10%.
11h00 Euro zone: GDP Q 1, exp -2.00%, previous -1.60%.
11h00 Euro zone: CPI Y/Y (APR), exp +0.60%, previous +0.60%,
14h30 US: CPI M/M (APR), exp unchanged, previous -0.10%.
14h30 US: CPI excluding food and energy M/M (APR), exp +0,10%, previous +0,20%
15h15 US: Industrial Production, exp -0.60%, previous -1.50%.
15h15 US: Capacity Utilization, exp 68.80%, previous 69.30%.
15h55 US: University of Michigan Confidence, exp 67.0, previous 65.1.

Overnight Rates & Indices:
EURUSD: 1.3650 – 1.3619.
USDCHF: 1.1060 – 1.1038.
GBPUSD: 1.5245 – 1.5213.
EURJPY: 120.97 – 128.86.
USDJPY: 96.18 – 95.79.
DowJones: 8'331 +0.56%.
NASDAQ: 1’689 +1.50%
S&P 500: 893 +1.04%.
Nikkei: 9’247 +1.69%.
Gold: $926.60

Comments:

U.S. stock markets finished the day sharply higher yesterday, resulting in an increase in "carry trades" and a drop in U.S. currency. In Europe today, the day will be marked by GDP figures for the 1st quarter in Germany, France and the euro area. Spanish 1st quarter GDP figures yesterday came in at their lowest in 50 years. In the United States, we are expecting inflation, industrial production and University of Michigan index this afternoon.

As regards to the forex market, EURUSD is closing in dangerously on the highest achieved in mid-March, when the pair had stalled at 1.3740 for three days. This is a key area in the medium term, as a series of stop losses buyers are positioned above 1.3750.

Good Weekend

Emman Xuereb
RTFX Ltd
Head Office

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