MORNING BRIEFING: EURUSD bounced off the 55 day moving average; plenty of economic data to be published today

[RTFX-Trading]

MORNING BRIEFING: EURUSD bounced off the 55 day moving average; plenty of economic data to be published today

What’s new:
Wall Street: Dow Jones and Nasdaq drop 2% and 2.75% respectively.
United States: NAHB index reaches highest level in over a year.
United States: ‘Empire State’ index returns to growth, 12.08% in August.
United States: Net capital outflows $31.3 billion in June.
Euro zone: Trade surplus of €4.6 billion in June.

Today:


Overnight Rates and Indices:
EURUSD: 1.4133 – 1.4067.
USDCHF: 1.0790 – 1.0742.
GBPUSD: 1.6409 – 1.6325.
EURJPY: 134.19  132.79.
USDJPY: 95.02 – 94.34.
DowJones: 9’135 -2.00%.
NASDAQ: 1’930 -2.75%.
S&P 500: 979 -2.43%.
Nikkei: 10’229 -0.38%.
Gold: $937.70
Crude Oil: $66.99

Comments:

The markets were turbulent yesterday; Wall Street suffered its worst fall in almost two months, as investors question the global economic recovery. The stock market was very hot yesterday, following the fall Shanghai Stock Exchange by 5.79%. The impact on the foreign exchange market was soft, as the "carry trades" rebounded from their lowest reached yesterday morning when the EURUSD bounced from off its 55 day moving average. Despite disappointing US economic data and the sharp decline in the markets, we see a return of risk appetite.

The day is loaded with economic data, with the consumer prices index from the United Kingdom at 10:30 CET, the index of economic sentiment from the euro area at 11:00 CET, followed by real estate figures and producer prices index from the United States at 14:30 CET.

Good Day

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