MORNING BRIEFING: The dollar continues its decline, above 1.4800 against the single currency for the first time in a year

[RTFX-Trading]

MORNING BRIEFING: The dollar continues its decline, above 1.4800 against the single currency for the first time in a year

What’s new:
Oil: Prices ended sharply higher.
G20: The Heads of State and Government should coordinate their actions in the economic and financial markets.
United States: Decline of manufacturing index of the Richmond Fed in September.
United States: House price index up in July.
Switzerland: trade surplus fell to CHF 1.78Mrds in August.

Today



Rates in Asia and Indices:
EURUSD: 1.4843 - 1-4785
USDCHF: 1.0243 - 1.0183
EURUSD: 1.6414 - 1.6351
EURJPY: 134.91 - 134.06
USDJPY: 91.19 - 90.49
DowJones: 9'827 +0.52%
NASDAQ: 2'146 +0.39%
S & P 500: 1,044 +1.04%
Nikkei: closed
Shanghai: 2'887 -0.35%
GOLD: $ 1'017 .20
Oil: $ 71.65
 
Comments:

The dollar continues its decline, above 1.4800 against the single currency for the first time in a year, close to 1.0200 against the Swiss franc (the lowest since mid-July 2008). The market has a pessimistic feeling about the U.S. dollar, which leads a selling approach before the meeting of the U.S. Federal Reserve this evening at 20:15 and G20 summit. The dollar is still penalized on the diversification of foreign exchange reserves of central banks. Iran is currently converting its foreign exchange reserves from Dollars into Euros.

Investors expect a continuation of the status quo of the monetary policy rates near 0% at 20:15 tonight. The market's attention will focus on the Fed's statements on the subject of the economy, especially as its chairman, Ben Bernanke, said last week that the recession was "technically" complete.

Good day.

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
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Fax: +356 21 41 24 58
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