MORNING BRIEFING: IMF sees stronger growth in 2010; Investors await Fed Meeting

[RTFX-Trading]

MORNING BRIEFING: IMF sees stronger growth in 2010; Investors await Fed Meeting

What’s new?
IMF: Growth in 2010 may be better than forecast.
Euro zone: Trichet sees no more room for debt.
Euro zone: EU leaders back a system of financial supervisors.
France: Minister eyes deficit over 7% of GDP.
World Bank expect deeper slump for most economies.
United States: Fed meeting this week with QE plans and economic view being the hot topics.
United Kingdome: House asking prices fall in June.

Today:
10h00 Germany: IFO Business Climate Index June, exp 85.0, previous 84.2

Overnight Rates and Indices:
EURUSD: 1.3957 – 1.3873.
USDCHF: 1.0860 – 1.0793.
GBPUSD: 1.6510 – 1.6446.
EURJPY: 134.29 – 133.16.
USDJPY: 96.31 – 95.79.
DowJones: 8’539 -0.2%.
NASDAQ: 1’827 +1.1%.
S&P 500: 921 +0.31%.
Nikkei: 9’842 +0.57%.
Gold: $933.
Crude Oil: $69.46.
 
Comments:

The highlight of the coming week will be the FOMC meeting, as investors will be focused on any Quantitive Easing plans and the outlook of the Fed on the economy. Investors will also be focused on inflation as evidence for on the stability of the economy and for future rate decisions. The market is not expecting any interest rate hikes in the near future as the benchmark short-term interest rate remains near zero. Rumors are circulating that the Fed may start to discuss the timing and exit strategies from Quantitive easing.

European Central Bank President Trichet warned that countries had no more room for debt and should start shrinking budget deficits. In other news from the European area, European Union leaders agreed last Friday to further steps to avoid a repeat of the banking crisis by backing the creation of a system of financial supervisors.

The dollar recovered from Friday’s sell off as EURUSD dropped to 1.3847 from a high of 1.3957 on early Monday trading. The Dollar recovered to 96.18 after reaching a low of 95.79 against the Yen, to 1.6430 from 1.65 against the Pound and increased to 1.0884 against the Franc.

Good Day

Emman Xuereb
RTFX Ltd
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