MORNING BRIEFING: EURUSD sharply lower to $ 1.4000, the IMF supports the supremacy of the U.S. dollar.

[RTFX-Trading]

MORNING BRIEFING: EURUSD sharply lower to $ 1.4000, the IMF supports the supremacy of the U.S. dollar.


What's new:
Japan: further increase in industrial production in June.
Oil: down 5% in New York.
United States: Obama sees the beginning of the end of the recession.
Euro zone: ECB should not raise rates at least a year.
United States: relapse of new durable goods orders in June.

Today:
10:00 Germany: unemployed July, expected +45'000 last +31'000.
11:00 Euro-zone: index of business climate July, expected -2.83, last -2.97.
11:00 Eurozone: Economic sentiment indicator July, expected 75.1, last 73.3.
14.30 United States: weekly jobless claims, expected 570'000, last 554'000.

Rates in Asia and Indices:
EURUSD: 1.4074 - 1.4009.
USDCHF: 1.0901 - 1.0852.
GBPUSD: 1.6439 - 1.6340.
EURJPY: 133.97 - 133.21.
USDJPY: 95.31 - 94.83.
DowJones: 9'070 -0.29%.
NASDAQ: -0.39% 1'967.
S & P 500: 975 -0.46%.
Nikkei: 10'115 +0.02%.
GOLD: $ 929.30.
Oil: $ 63.15.
 

Comments:

The dollar climbed sharply yesterday against its main rivals, to 1.4007 against the euro, 1.6340 against the pound sterling and 1.0907 against the Swiss franc, the appetite for risk falling at the same time as the stock markets and the oil market. This drop in raw materials and "carry trades" is due to falling durable goods orders in June in the United States and China's concerns that it should curb the credit to avoid overheating of it financial markets , which could slow global recovery.

The dollar also benefited from the publication of the Beige Book, the Fed, who felt that the pace of recession has slowed or stabilized in most parts of the country and the statement by the President of the United States Obama, who sees the beginning of the end of the recession.

Another statement that has prompted investors to enter long position on the greenback is the statement by the Director General of the International Monetary Fund, Dominique Strauss-Kahn, who said that the supremacy of the dollar as a currency of reference is not challenged. However, he said that the idea of a multilateral currency is not buried, but it is far from a situation in which the supremacy of the dollar would be contested.

Some investors are beginning to study the correlation between gold (XAU/USD) and the EUR/USD, which have both dropped sharply yesterday. Gold fell to $925 an ounce, a lowest since July 15 when the EUR/USD fell to $1.4007, which is also the lowest since July 15.

Today will be dominated by a new avalanche of results in Europe and the United States.

Good day and good trading.

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
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