MORNING BRIEFING: The week following Labor Day in the U.S. (Labor Day) has always been a big week for the foreign exchange market

[RTFX-Trading]

MORNING BRIEFING: The week following Labor Day in the U.S. (Labor Day) has always been a big week for the foreign exchange market

What’s new:
Japan: growth of bank loans at a lower last year.
Switzerland's unemployment rate rose to 3.80% in August.
France: nearly 70,000 business failures planned for 2009.
Germany: 3.50% increase in orders to industry in July.
Euro area: the investor sentiment measured by the index Sentix up.

Today



Rates in Asia and Indices:
EURUSD: 1.4338 - 1.4329.
USDCHF: 1.0603 - 1.0586.
EURUSD: 1.6380 - 1.6323.
EURJPY: 133.46 - 132.87.
USDJPY: 93.08 - 92.69.
DowJones: Closed.
NASDAQ: Closed.
S & P 500: Closed.
Nikkei: 10'358 +0.36%.
Shanghai +0.04% 2'882.
GOLD: $ 997.15.
 Oil: $ 68.41.
 
Comments:

Some factors favor a weaker dollar, gold and silver are soaring, the U.S. interest rates are extremely low (the 2 years is 0.92%), well below the Japanese rate to three months. A devaluation of the dollar may be necessary to combat the deficit, according to some articles of the American press. The G20 report optimistic pushes investors to seek risk appetite, which is dollar bearish. And as recently as yesterday, the United Nations released a report that a new currency is needed to determine the loss of confidence in the dollar.

While other factors are dollar bullish, as the trade balance has improved greatly, and the savings rate of Americans. Investors also believe that the U.S. will be the first country out of crisis, which will trigger a differential interest rate for the greenback.

The week following Labor Day in the U.S. (Labor Day) has always been a big week for the foreign exchange market. Very often, it has determined the trend for the next three months, so I am very excited to see the reaction of investors who are back in business and left sides of their swimsuits.

Nice day.

Nicolas Longchamp
Head of trading desk
RTFX Ltd
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

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