MORNING BRIEFING: The EURUSD bounced off its 55 day moving average, the Pound is expected to be highly volatile today.

[RTFX-Trading]

MORNING BRIEFING: The EURUSD bounced off its 55 day moving average, the Pound is expected to be highly volatile today.

What’s new:
Switzerland: The government announced it was exiting the 9 percent stake it had with UBS.
United States /Switzerland: End of civil proceedings, UBS is not fined, will need to provide names of 4,450 clients.
Crude Oil: Increased after drop in US stocks.
ECB: Weber declares that the recovery has not yet been achieved.
United Kingdom: Drop in Industrial Trends in August.
United Kingdom: BoE divided over the increase of asset purchases.

Today:



Overnight Rates and Indices:
EURUSD: 1.4258 – 1.4207.
USDCHF: 1.0682 – 1.0639.
GBPUSD: 1.6565 – 1.6503.
EURJPY: 134.42 – 133.73.
USDJPY: 94.44 – 93.97.
DowJones: 9’279 +0.66%.
NASDAQ: 1’969 +0.68%.
S&P 500: 996 +0.69%.
Nikkei: 10’371 +1.65%.
Gold: $942.65.
Crude Oil: $72.60.
 
Comments:

The EURUSD is up to 1.4235, the major support at 1.4050-80 held, resulting in a "short covering" with most investors thinking that EURUSD would test lower. In the IMM market in New York yesterday afternoon, when the increase from 1.4139 to 1.4229 took place, 36,000 contracts were processed in 25 minutes, which corresponds to an equivalent of 4.5 billion in EURUSD! However, despite the amounts being traded, the EURUSD remains confined within a range between 1.4007 and 1.4447.

Also yesterday, GBPUSD experienced a massive sell off to 1.6375 following the minutes from the BoE MPC meeting in the UK, and then picked up to 1.6565 helped by the rise in EURUSD. The Pound is expected to again be volatile today, as retail sales in the UK are expected at 10h30CET.

Good Day
Emman Xuereb

RTFX Ltd
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