The EURUSD dropped to 1.3465, after reaching 1.3650 on Friday. Rumors of intervention by the Swiss Bank.

[RTFX-Trading]

The EURUSD dropped to 1.3465, after reaching 1.3650 on Friday. Rumors of intervention by the Swiss National Bank.

What's new?  
United States: The S&P posted its worst weekly performance in two months.
Euro area: The European economy sank into recession in Q1 of 2009.
Switzerland: Rumours of intervention by the BIS.
UK: New accusations in expenses claim scandal.
United States: Net capital flows rebound to $23.2B in March.
United States: Industrial production fell for the 6th straight month.
United States: Index of producer prices unchanged in April, -0.70% in one year.
Russia: fall of 9.50% of GDP a year in Q1.

Today:
11h00 Euro zone: Trade balance (APR), previous €-2.0B.
19h00 United States: NAHB housing market INDEX, exp 16, previous 14.

Overnight Rates & Indices:
EURUSD: 1.3490 – 1.3424.
USDCHF: 1.1260 – 1.1217.
GBPUSD: 1.5142 – 1.5104.
EURJPY: 128.26 – 126.97.
USDJPY: 95.17 – 94.55.
DowJones: 8'269 -0.75%.
NASDAQ: 1’680 -0.54%.
S&P 500: 883 – 1.14%.
Nikkei: 9’062 -2.18%.
Gold: $933.20

Comments:

The Swiss franc fell sharply Friday, following rumours of market intervention by the Bank for International Settlements (BIS), which is said to have bought Euros against Swiss francs. This rumor was not confirmed by the Swiss National Bank.
   
The Dollar gained ground Friday following the decline in U.S. equity markets. After testing 1.3650 against the Euro, the greenback firmed up and reached 1.3424 this morning in Asia. The economic data was mixed on Friday, the University of Michigan index rose to 67.90 in May, beating market expectations of 67. The index of current activity "Empire State" rose to -4.6 compared to -14.7 last month. The index of consumer prices unchanged in April, while the consumer price index excluding food and energy rose by 0.30%. The net capital inflows were higher than expected at $36.9B. This improvement was mainly fueled by the flow of U.S. Treasury of $55.3B.
   
The events schedule is not provided this week. The Secretary of the Treasury Geithner will speak to Congress on 20 and 21 May

Have a nice week.

Emman Xuereb
RTFX Ltd
Head Office

Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 27 78 01 35
Fax: +356 21 41 24 58
Web: www.rtfx.com

This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender. Any use not in accordance with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except with formal approval. The internet cannot guarantee the integrity of this message. RTFX Ltd (and its subsidiaries) shall (will) not therefore be liable for the message if modified. Do not print this message unless it is necessary, consider the environment. RTFX Ltd holds a Category 3 license issued by the Malta Financial Services Authority.