MORNING BRIEFING: The Euro reaches 1.4400 against the Dollar, a new high for 2009.

[RTFX-Trading]

MORNING BRIEFING: The Euro reaches 1.4400 against the Dollar, a new high for 2009.

What’s new?
Switzerland: Net loss of 1.4 billion in 2nd quarter 2009.
United States: Less than expected funding needed in 3rd quarter.
United States: NASDAQ closes above 2,000 points, S&P500 passes 1,000.
United States: Construction spending increases by 0.30% in June.
United States: Manufacturing index increased to 48.9 in July.
Euro-zone: The manufacturing sector on the road to recovery.
United Kingdom: Industry resumes growth in July.

Today:
09h15 Switzerland: Consumer Prices index M/M July, exp -0.50%, previous 0.20%.
11h00 Euro zone: Producer Prices index M/M June, exp 0.20%, previous -0.20%.
14h30 United States: Personal Income June, exp -1.00%, previous +1.40%.
14h30 United States: Personal Spending June, exp 0.30%, previous 0.30%.
14h30 United States: PCE Deflator Y/Y June, exp +0.20%, previous +0.10%.
16h00 United States: Pending Home Sales M/M June, exp +0.60%, previous +0.10%.
 

Overnight Rates and Indices:
EURUSD: 1.4432 – 1.4376.
USDCHF: 1.0624 – 1.0587.
GBPUSD: 1.7003 – 1.6923.
EURJPY: 137.69 – 136.68.
USDJPY: 95.46 – 95.03.
DowJones: 9'286 +1.25%.
NASDAQ: 2’008 +1.52%.
S&P 500: 1’002 +1.53%.
Nikkei: 10416 +0.62%.
Gold: $954.25.
Crude Oil: $71.18.
 
Comments:

Wall Street continued to rebound Monday, thanks to further improvement in the manufacturing sector and optimism about the automotive industry and banking. The NASDAQ has reached 2,000 points and the S & P500 has just topped 1,000 points for the first time in nine months. The EURUSD has exceeded 1.44 dollars for the first time since the beginning of the year, on renewed appetite for risk by investors. The carry trades are sharply on the rise, the EURJPY is at 136.75, the GBPJPY at 160.95, the AUDJPY at 80.05, the NZDJPY reached 63.45 and CADJPY is at 89.00.

Furthermore investors were tempted to purchase the "carry trades" following the announcement by US Treasury that its financing needs would be lower than expected for the 3rd quarter. This was seen as a clear sign that the US economy has stabilized and the recession has decreased in intensity. The US Treasury said it would borrow $406 billion through the issuance of bonds for the period July-December, $109 billion less than it had anticipated in April. Treasury borrowing had increased sharply in previous months to fund the revival plan for the US economy.

Today, the marker should digest yesterday’s volatile day, while awaiting Central banks announcements on Thursday and US employment figures on Friday. We still anticipate more risk appetite from investors in the coming days.

Good Day

Emman Xuereb
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
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