MORNING BRIEFING: The United Nations calls for a reduced role as a refuge currency for the Dollar.

[RTFX-Trading]

MORNING BRIEFING: The United Nations calls for a reduced role as a refuge currency for the Dollar.

What’s new:
United States: Obama to address congress on health care reform today.
United Kingdom: BoE starts its two-day monetary policy meeting today.
United Kingdom: Sharp rise in industrial production in July.
Germany: Unexpected drop in industrial production in July.
United States: Record low in consumer credit in July, the lowest since 1975.
United States: Drop in employment trends in August.

Today:


Overnight Rates and Indices:
EURUSD: 1.4518 – 1.4475.
USDCHF: 1.0476 – 1.0448.
GBPUSD: 1.6545 – 1.6484.
EURJPY: 134.17 – 133.65.
USDJPY: 92.43 – 92.24.
DowJones: 9'497 +0.59%.
NASDAQ: 2'037 +0.94%.
S&P 500: 1'025 +0.88%.
Nikkei: 10’282 -1.07%.
Shanghai: 2’921 -0.30%.
Gold: $1’001
Crude Oil: $71.25.
 
Comments:

The US Dollar yesterday was under pressure yesterday, as it fell under 1.0500 against the Swiss Franc and broke 1.4450 against the single currency. This led to stop-losses being triggered that accentuated its slide. The continuing rise in gold which has topped $ 1,000 an ounce plays its role in the weakening of the dollar and raise expectations of renewed inflation. The last time the EURUSD passed the mark of 1.4500 was back in December 18, 2008.

The UN report that called for reducing the role of safe-haven status of the US Dollar for global trade is the spark that led to the massive sale of the greenback.

Today, the market will digest the yesterday’s volatile day, as few figures are expected to be released. The EURUSD should remain confined within a range between 1.4400 - 1.4550.

Good Day.

Emman Xuereb
RTFX Ltd
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