MORNING BRIEFING: Currency markets continue to be driven by risk appetite; USD remains weak.

[RTFX-Trading]

MORNING BRIEFING: Currency markets continue to be driven by risk appetite; USD remains weak.

What’s new:
Euro zone: ECB President says US, Europe and China should accept IMF advice.
United States: Federal Deposit Insurance Cooperation may ask banks for bailout.
United States: Bank of America skips Congress Deadline.
United States: US to urge world leaders to launch a new push to rebalance world economy.
United States: Leading Indicators increases slightly but misses forecasts.
Russia:  Wants new global reserve currencies.

Today:


Overnight Rates and Indices:
EURUSD: 1.4732 – 1.4672.
USDCHF: 1.0327 – 1.0285.
GBPUSD: 1.6285 – 1.6203.
EURJPY: 135.21 – 134.83.
USDJPY: 92.10 – 91.63.
DowJones: 9'778.86 -0.42%.
NASDAQ: 2’138.04 +0.24%.
S&P 500: 1’064.66 -0.34%.
Nikkei: 10’370.54 -0.70%.
Shanghai: 2’923.14 -1.49%,
Gold: $1,007.05.
Crude Oil: $70.09.
 
Comments:

The US Dollar gave up most of its early Monday gains during the US and Asian sessions. EURUSD reached 1.4730 early today, while GBPUSD rose back to 1.6285. The Swiss Franc is at 1.0287 and the Australian Dollar increased to 0.8723 against the greenback. The currency markets continue to be driven by investors’ risk appetite.

The only data released yesterday was the Leading Indicators from the US, which showed a slight increase to 0.6% M/M, however shy of market consensus at 0.7%. The economic data expected for today are the House Price Index from the US at 1600 CET, which is expected to remain unchanged at 0.5% and the Richmond Fed Index is expected to show an increase for September. We expect range trading to dominate today ahead of the FOMC meeting tomorrow.

Good Day.

Emman Xuereb
RTFX Ltd
Head Office
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