MORNING BRIEFING: The Euro continues to be sought after against the Dollar, it has now reached a 3 week high at 1.4201 yesterday.

[RTFX-Trading]

MORNING BRIEFING: The Euro continues to be sought after against the Dollar, it has now reached a 3 week high at 1.4201 yesterday.

What’s new?
United States: Private sector sheds 473'000 jobs in June.
United States: Auto sales plunge in June.
United States: Construction spending in May at its lowest in 5 years.
United States: Further improvement in manufacturing activity.
France: Auto sales +7.10 following introduction of new premium system.
Germany: Political agreement over the “bad” banks.
Germany: Unexpected rise in retail sales in May.

Today:
11h00 Euro zone: Producer Prices index M/M May, exp +0.10%, previous -1.00%.
11h00 Euro zone: roducer Prices index Y/Y May, exp -5.60%, previous -4.60%.
11h00 Euro zone: Unemployment Rate May, exp 9.40%, previous 9.20%.
13h45 Euro zone: ECB Interest Rate Decision, exp 1.00%, previous 1.00%.
14h30 United States: Non-farm Payrolls, exp -363'000, previous -345'000.
14h30 United States: Unemployment Rate June, exp 9.60%, previous 9.40%.
14h30 United States: Average Hourly Earnings M/M June, exp +0.10%, previous +0.10%.
14h30 United States: Weekly Jobless Claims, exp 615'000, previous 627'000.
14h30 Euro zone: Speech by ECB President Jean-Claude Trichet.
16h00 United States: Factory Orders M/M May, exp +0.80%, previous +0.70%.

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: 8'504 +0.68%.
NASDAQ: 1’846 +0.58%.
S&P 500: 923 +0.44%
Nikkei: 9’881 -0.59%.
Gold: $939.20
Crude Oil: $69.13
 
Comments:
   
The Euro continued its climb yesterday; the currency reached its highest level in three weeks against the greenback during New York trading at 1.4201. The EURUSD is currently at 1.4125. The single European currency has received a boost thanks to an unexpected rise in retail sales in Germany during May and slower contraction of activity in the manufacturing sector in June.

The Dollar and the Yen were brushed aside as the economy shows signs of improvement in various countries. Although Wall Street closed higher yesterday pushed by better numbers from the US manufacturing sector, the ADP employment report figures were worse than expected which suggests that the employment report scheduled for later this afternoon could be bad, which should further weigh on the US Dollar.

We expect the action from 13h00 CET onwards today, as in addition to the expected figures of US jobs at 14h30 CET, the European Central Bank also holds its meeting and will make its decision on interest rates at 13h45 CET, before a press conference at 14:30 CET.

Good Day

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.