MORNING BRIEFING: ECB Monetary Policy meeting today.

[RTFX-Trading]

MORNING BRIEFING: ECB Monetary Policy meeting today.

What’s new:
FED: The rates will remain at a low level for a long time.
United States: Factory orders increase.
United States: The private sector shed 298'000 jobs in August.
Spain: Unemployment rose again to over 3.6 million.
Euro zone: Producer prices index down 0.80% in July.
Euro zone: GDP contraction confirmed at 0.10% in Q2, -4.70% over a year.

Today:



Overnight Rates and Indices:
EURUSD: 1.4283 – 1.4252.
USDCHF: 1.0621 – 1.0598.
GBPUSD: 1.6287 – 1.6237.
EURJPY: 131.93 – 131.16.
USDJPY: 92.40 – 91.95.
DowJones: 9'280 -0.32%.
NASDAQ: 1’967 -0.09%.
S&P 500: 994 -0.33%.
Nikkei: 10’245 -0.34%.
Shanghai: 2'810 +3.53%.
Gold: $975.35.
Crude Oil: $68.22.
 
Comments:

Wall Street closed lower yesterday for the 4th straight session, while the Chinese Shanghai Composite closed higher by 3.53%. Investors are still waiting for new economic data that could indicate an economic recovery or an extension of the financial crisis.

Regarding the minutes from the Fed’s meeting (FOMC Minutes), officials of the Federal Reserve discussed the possibility that interest rates will remain low for long. They also noticed a weakness of the expected economic recovery.

Gold experienced heavy purchases yesterday, went from $952 per ounce to $980, as a Chinese sovereign fund has invested large sums in raw materials. Silver also appreciated from $14.85 per ounce to $15.45, an increase of 3% for gold and 4% for silver.

Today, the European Central Bank holds its monetary policy meeting; it is expected to leave its rate unchanged at 13h45CET, while its president, Jean-Claude Trichet, will deliver his speech at 14h30CET. We expect volatility, but still in a trading range between 1.3950 - 1.4450 in EURUSD, as the market should not take new positions ahead of tomorrow's unemployment figures from the United States.

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
Web: www.rtfx.com

This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender. Any use not in accordance with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except with formal approval. The internet cannot guarantee the integrity of this message. RTFX Ltd (and its subsidiaries) shall (will) not therefore be liable for the message if modified. Do not print this message unless it is necessary, consider the environment. RTFX Ltd holds a Category 3 license issued by the Malta Financial Services Authority.