MORNING BRIEFING: Renewed optimism for a rebound in the US economy ; the Dollar is highly demanded.

[RTFX-Trading]

MORNING BRIEFING: Renewed optimism for a rebound in the US economy ; the Dollar is highly demanded.

What’s new:
BoJ: Maintain status quo on monetary policy.
France: Industrial production recovers in June.

Today:
08h00 Germany: CPI M/M July, exp -0.10%, previous 0.40%.
08h00 Germany: CPI Y/Y July, exp -0.60%, previous 0.10%.
08h45 France: Budget Deficit June, previous €-88.7Mrds.
10h30 United Kingdom: Visible Trade Balance, exp £6.20B, previous £6.26B.
14h30 United States: Non-farm Productivity Q2, exp 5.30%, previous 1.60%.
14h30 United States: Unit Labor Cost Q2, exp -2.40%, previous 3.00%.
16h00 United States: Wholesale Inventories, exp -0.90%, previous -0.80%.

Overnight Rates and Indices:
EURUSD: 1.4158 – 1.4124.
USDCHF: 1.0865 – 1.0838.
GBPUSD: 1.6523 – 1.6447.
EURJPY: 137.42 – 136.44.
USDJPY: 97.17 – 96.56.
DowJones: 9'337 -0.34%.
NASDAQ: 1’992 -0.40%.
S&P 500: 1’007 -0.33%.
Nikkei: 10'543 +0.19%.
Gold: $945.40.
Crude Oil: $70.03.
 
Comments:

It was a relatively quiet day yesterday for all the major currencies except for the Pound, which continues to be targeted by investors. The Pound is down more than 1% against the Dollar to 1.6460. The bearish trend is fueled by signs of recovery from the US economy, but the evolution of the pair in the coming days depends on the FOMC meeting. The FED might try to curb expectations that they may increase their borrowing rates previously than expected a few weeks ago

A bearish sentiment towards EURUSD is present in the market. The last time there was such a sentiment, the EURUSD fell from 1.600 to 1.2300 in four months during the second half of 2008. Investors are anticipating that the US economy will recover much faster than other countries. The US unemployment figures provided the market with a positive surprise Friday, encouraging investors to continue to purchase the greenback.

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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