MORNING BRIEFING: US Consumer confidence down, leads to a rise in the US Dollar.

[RTFX-Trading]

MORNING BRIEFING: US Consumer confidence down, leads to a rise in the US Dollar.

What’s new:
Japan: GDP resumes growth in 2nd quarter, increases by 0.90%.
Switzerland: UBS will provide the names of 5,000 US customers.
United Kingdom: According to a member of the BoE, growth will return in the 2nd quarter 2009.
United States: Declining consumer confidence in August.
United States: Increase of 0.50% in industrial production in July.
United States: Consumer prices unchanged in July.
Euro zone: Decline in consumer prices is less than expected in July.
Spain: GDP falls by 1.00% in 2nd quarter 2009.

Today:


Overnight Rates and Indices:
EURUSD: 1.4195 – 1.4135.
USDCHF: 1.0772 – 1.0729.
GBPUSD: 1.6520 – 1.6419.
EURJPY: 134.53 – 133.50.
USDJPY: 94.87 – 94.40.
DowJones: 9’321 -0.82%.
NASDAQ: 1’985 -1.19%.
S&P 500: 1’004 -0.85%.
Nikkei: 10'310 -2.70%.
Gold: $943.40.
Crude Oil: $66.79.
 
Comments:
   
The sharp fall in consumer confidence pushed Wall Street lower, leading to a sharp increase in the US Dollar and rising risk aversion. The index of consumer confidence from the University of Michigan came out at 63.20 in August, against 66.0 in July and 68.5 expected. The market was very surprised by this poor figure, which calls into question the end of the recession, especially since the figures of the past week were reassuring, particularly in the countries from the Euro area and Japan where they have announced positive GDP for the 2nd quarter 2009.
   
The closure of three US banks late Friday evening, struck by the financial and real estate crisis has also led to investors selling the "carry trades". The AUDJPY is down from 80.20 to 77.50 and the NZDJPY from 65.30 to 63.25. According to the WSJ, there were reports of 77 US bank failures this year, including 32 since July 1st. The highest number of bank failures in since 1992.

Good day

Emman Xuereb
RTFX Ltd
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