MORNING BRIEFING: Cautious speech by Fed chairman restores some strength to safe haven currencies.

[RTFX-Trading]

MORNING BRIEFING: Cautious speech by Fed chairman restores some strength to safe haven currencies.

What’s new?
United States: Closer to an agreement over health insurance reform.
United States: Bernanke sees signs of improvement in the economy.
Switzerland: Trade surplus is CHF1’572 million in June

Today:
08h45 France: Consumer Spending June, exp +0.30%, previous -0.20%.
11h00 Euro zone: Industrial New Orders M/M May, exp +1,80%, previous -1.00%.
14h30 Canada: Retail Sales M/M May, exp +0.50%, previous -0.80%.
14h30 Canada: Retail Sales ex Auto M/M May, exp +0.40%, previous -0.50%.

Overnight Rates and Indices:
EURUSD: 1.4226 – 1.4174.
USDCHF: 1.0697 – 1.0658.
GBPUSD: 1.6465 – 1.6375.
EURJPY: 133.39 – 132.51.
USDJPY: 93.82 – 93.40.
DowJones: 8'915 +0.77%.
NASDAQ: 1’916 +0.36%.
S&P 500: 954 +0.36%.
Nikkei: 9’725 +0.76%.
Gold: $948.50.
Crude Oil: $65.18.
 
Comments:
   
The cautious speech by the chairman of the Federal Reserve Ben Bernanke restored some value to the safe haven currencies yesterday. The Dollar, after reaching as low as 1.4277 against the Euro yesterday, was up to 1.4191. The Swiss Franc also benefited from its safe haven status, as it was up against the Euro at 1.5162 and the highest for a month against the Dollar at 1.0680. The mixed results from companies yesterday also prompted investors to play it safe, resulting in the "carry trades" being put under pressure.

Good Day.

Emman Xuereb
RTFX Ltd
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The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
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