MORNING BRIEFING: Risk appetite returns, the Dollar falls to 1.4100 against the Euro.

[RTFX-Trading]

MORNING BRIEFING: Risk appetite returns, the Dollar falls to 1.4100 against the Euro.

What’s new?
Euro zone: Economic sentiment on the rise in June.
China: Ruled out a quick change of their foreign exchange reserves policy.
Rosengren: The US economy will resume growth in the second quarter.
European Commission: The worst seems over for the euro area.
Switzerland: Wants out of the OECD list in autumn.

Today:
08h00 United Kingdom: Nationwide House Prices index June, exp -0.40%, previous 1-20%.
08h50 France: Producer Price index May, exp +0.20%, previous -0.90%.
10h00 Germany: Unemployment Change June, exp +40'000, previous +1'000.
10h00 Germany: Unemployment Rate June, exp 8.30%, previous 8.20%.
10h00 Euro Zone: M3 Y/Y May, exp 4.60%, previous 4.90%.
10h30 United Kingdom: GDP Final Q/Q Q1, exp -2.10%, previous -1.90%.
10h30 United Kingdom: GDP Final Y/Y Q1, exp -4.40%, previous -4.10%.
11h00 Euro Zone: HICP Flash Y/Y June, exp -0.20% previous 0.00%.
14h30 Canada: GDP M/M April, exp -0.10%, previous -0.30%.
14h30 Canada: Producer Prices index M/M May, exp -0.50%, previous -0.50%.
15h00 United States: CaseShiller index April, exp -1.80%, previous -2.20%.
15h45 United States: Chicago PMI, exp 39.0, previous 34.9.
16h00 United States: Consumer Confidence index June, exp 55.0, previous 54.9.

Overnight Rates and Indices:
EURUSD:  1.4132 – 1.4071.
USDCHF: 1.0839 – 1.0799.
GBPUSD: 1.6660 – 1.6544.
EURJPY: 135.95 – 134.92.
USDJPY: 96.31 – 95.66.
DowJones: 8'529 +1.08%.
NASDAQ: 1’844 +0.32%.
S&P 500: 922 +0.91%.
Nikkei: 9’963 +1.84%.
Gold: $942.75
Crude Oil: $72.68
 
Comments:
   
The markets began the week on a positive note. Economic growth is expected to resume towards the end of the quarter and the statement by the European Commission that the peak of the crisis is probably behind us for the euro zone, led to renewed appetite for risk, which penalized the US Dollar. The Dollar is down 1.4140 against the Euro and 1.6730 against the Pound, while EURJPY rose from 133.50 to 136.00 in 24 hours.

The market will analyze new economic data to decide whether we have reached the end of the crisis or not, while we wait for the next two major economic events; the European Central Bank Interest Rate Decision and statement and the employment report from the United States on Thursday.

Emman Xuereb
RTFX Ltd
Head Office

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