MORNING BRIEFING: The US Dollar recovered following change in Libor definition.

[RTFX-Trading]

MORNING BRIEFING: The US Dollar recovered following change in Libor definition.

What’s new?
United Kingdom: BBA said it will change its definition of Libor.
Switzerland: SNB monetary policy unchanged.
Euro Zone: EURCHF rises on rumors of intervention.
United Kingdom: Disappointing retail sales figures.
United States: Philadelphia Fed Manufacturing slump slows sharply in June.
United States: Investors focused on Fed’s Treasury buying, eyeing FOMC meeting next week.

Today:
08h00 Germany: PPI M/M May, exp -0.10%, previous -1.40%.
14h30 Canada: Retail Sales M/M Apr, exp 0.10%, previous 0.30%
14h30 Canada: Retail Sales ex Auto M/M Apr, exp 0.00%, previous -0.20%

Overnight Rates and Indices:
EURUSD: 1.3949 – 1.3883.
USDCHF: 1.0880 – 1.0831.
GBPUSD: 1.6384 – 1.6304.
EURJPY: 134.82 – 134.11.
USDJPY: 96.76 – 96.48.
DowJones: 8’556 +0.69%.
NASDAQ: 1’807 -0.02%.
S&P 500: 911 +0.05%.
Nikkei: 9’753 +0.51%.
Gold: $934.
Crude Oil: $71.65.
 
Comments:

The British Bankers’ Association said it will change its definition of Libor on Thursday. The BBA to let non-London banks participate in Libor and it will allow more institutions to be involved in surveys that set the London Interbank Offered Rate. Libor rates represent the average cost at which a panel of banks believe they can borrow funds. This news had a positive effect on the Dollar as investors believe that more banks participating in the Libor fixing would result in a higher Libor rate which would mean the yield on US investments will also be higher, which explains yesterday’s rally by the greenback. The Euro fell 0.4 percent to $1.3885 against the US dollar, after rising as high as $1.4001. 

The Euro traded higher against the Swiss franc following rumors that the Bank for International Settlements was buying Euros on behalf of the Swiss National Bank to offer support at the 1.50 Franc level. The euro rose to 1.5147 Francs from 1.5007. The Swiss National Bank held interest rates at a record low on Thursday and SNB governor Jean-Pierre Roth said he would continue to stop an irrational rise in the Swiss franc.

Good Weekend

Emman Xuereb
RTFX Ltd
Head Office

Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
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.