MORNING BRIEFING: FED FOMC Interest Rate Decision at 20:15 CET.

[RTFX-Trading]

MORNING BRIEFING: FED FOMC Interest Rate Decision at 20:15 CET.

What’s new:
United States: Obama says that US economy is not yet “Out of trouble”
United States: Toxic assets may require more aid.
United States: Tenth consecutive month of decline in wholesale inventories.
United States: Non-farm productivity jumps 6.40% from April to June.
United Kingdom: Trade deficit widens more than expected in June.
Japan: 2nd quarter growth may be short lived.
France: Budget deficit of €86.6 billion at the end of June.
Germany: Consumer prices down 0.70% in July.

Today:


Overnight Rates and Indices:
EURUSD: 1.4165 – 1.4132.
USDCHF: 1.0829 – 1.0806.
GBPUSD: 1.6507 – 1.6473.
EURJPY: 135.99 – 134.88.
USDJPY: 96.09 – 95.34.
DowJones: 9'241 -1.03%.
NASDAQ: 1’969 -1.13%.
S&P 500: 994 -1.27%.
Nikkei: 10'461 -1.17%.
Gold: $946.20.
Crude Oil: $69.48.
 
Comments:

A very interesting day ahead of us today; the Pound should be very turbulent this morning with the figures on employment scheduled at 10h30CET and the speech by the Governor of the Bank of England King due at 11h30CET. Disappointing unemployment figures are expected, while the speech about the health of the British economy is expected to be pessimistic. Technically two configurations contradict the pair GBP/USD (Cable): 1. A Harami is present on the daily chart, which could signal a reversal of trend. 2. A Head and Shoulders pattern may be forming, which could lead to a fall to 1.6000 in late September. The neckline is at 1.6340.

Later at 20h15CET, the Federal Reserve will announce its monetary policy decision, the status quo is expected. The FED will then publish a statement which should focus on a lower risk of inflation, and discuss the possible extension of the credit to households and businesses program.

Good Day

Emman Xuereb
RTFX Ltd
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