MORNING BRIEFING: Euro stable against the US dollar at 1.3975 ahead of the G8 summit in L'Aquila in Italy.

[RTFX-Trading]

MORNING BRIEFING: Euro stable against the US dollar at 1.3975 ahead of the G8 summit in L'Aquila in Italy.

What’s new?
United States: ISM services index in June increases.
France: Adecco foresees a decline in employment.
Australia: Central Bank left its key rate unchanged at 3%.
Euro zone: Surprise decrease in investor sentiment for July.
Euro group: Discussion on exit strategies from public deficits.

Today:
08h45 France: Trade Balance May, exp -3.70Mrds, previous -3.79Mrds.
10h30 United Kingdom: Industrial Production May, exp 0.20%, previous 0.30%,
10h30 United Kingdom: Manufacturing Production May, exp 0.20%, previous 0.20%.
12h00 Germany: Industrial Orders M/M May, exp 0.50%, previous 0.00%.
14h30 Canada: Building Permits M/M May, exp 0.70%, previous -5.40%.

Overnight Rates and Indices:
EURUSD: 1.3994 – 1.3949.
USDCHF: 1.0871 – 1-0835.
GBPUSD: 1.6296 – 1.6239.
EURJPY: 133.45 – 132-85.
USDJPY: 95.46 – 95.12.
DowJones: 8’324 +0.56%.
NASDAQ: 1’787 -0.51%.
S&P 500: 898 +0.26%.
Nikkei: 9’662 -0.19%.
Gold: $924.40.
Crude Oil: $64.50.
 
Comments:

The Dollar rose yesterday against the Euro following the release of the ISM services index, which rose more than expected in June in the United States and the surprising decline in investor sentiment in Europe.

However, the market believes that the US dollar could be put under pressure by any statements released from the G8, which meets for three days in Italy, from Wednesday to Friday. The heated issue of the status of the dollar as international reserve currency could become obsolete. Although we do not expect significant steps in the international framework for the currency markets, the risk is still present. Some investors are already starting to sell the greenback.

Good Day

Emman Xuereb
RTFX Ltd
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