MORNING BRIEFING: FOMC Meeting and G20 Summit in the week ahead.

[RTFX-Trading]

MORNING BRIEFING: FOMC Meeting and G20 Summit in the week ahead.

What’s new:
Euro zone: EU Monetary Affairs Commissioner Almunia is not keen on China diversifying into Euro.
United States: Obama wants G20 to rethink Global Economy.
United States: President Obama says US economy is recovering, even though unemployment remains high.

Today:


Overnight Rates and Indices:
EURUSD: 1.4713 – 1.4655.
USDCHF: 1.0338 – 1.0291.
GBPUSD: 1.6265 – 1.6148.
EURJPY: 135.00 – 134.16.
USDJPY: 92.10 – 91.30.
DowJones: 9'820.20 +0.37%.
NASDAQ: 2’132.86 +0.29%.
S&P 500: 1’068.30 +0.26%.
Nikkei: 10’370.54 -0.70%.
Shanghai: 2’931.09 -1.18%,
Gold: $1,000.85.
Crude Oil: $71.54.
 
Comments:

Ahead of the G20 summit in Pittsburgh later this week, President Obama said he would push world leaders for a reshaping of global economy in response to the worst financial crisis in decades. The US President also said that the US economy is recovering, however unemployment remains high.

The EU Monetary Affairs Commissioner Almunia said that Europe would not want excessive levels of Chinese reserve diversification into the Euro. This is the first reference made by a key EU official regarding the strength of the Euro.

This week all eyes will be mainly on the FOMC meeting on Wednesday and the G20 summit starting on Thursday. Talks between the US and China over recent trade rows may have an interesting effect, as any progress is likely to give a push to risk appetite with negative consequences for the Dollar.

Have a good week.

Emman Xuereb
RTFX Ltd
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