MORNING BRIEFING: ECB: Strong Dollar is important for the global economy.

[RTFX-Trading]

MORNING BRIEFING: ECB: Strong Dollar is important for the global economy.

What’s new:
Japan: Finance Minister Fuji expressed displeasure towards JPY moves but refuses to commit to intervention.
Euro-zone: ECB President Trichet, says a strong dollar is important for the global economy.

Today:


Overnight Rates and Indices:
EURUSD: 1.4646 – 1.4585.
USDCHF: 1.0348 – 1.0314.
GBPUSD: 1.5959 – 1.5874.
EURJPY: 131.79 – 130.99.
USDJPY: 90.23 – 89.59.
DowJones: 9'789.36 +1.28%.
NASDAQ: 2’130.74 +1.90%.
S&P 500: 1’062.98 +1.78%.
Nikkei: 10’091.00 +0.81%.
Shanghai: 2’724.59 -1.41%,
Gold: $991.35.
Crude Oil: $66.96.
 
Comments:

Mixed signals continued to emerge from Japan overnight as Minister of Finance Fuji expressed certain displeasures at recent JPY moves. However, he still refuses to commit to intervention. The new Prime Minister Hatoyama on the other hand, pointed out that the rise of the Yen is already hurting small businesses, possibly hinting that the government will not allow the Yen to appreciate more.

ECB President Trichet and ECB General Council member Nowotny both said that a strong Dollar is important for the global economy. They added that there is no need to rush into exit strategies from the present policies.

Today, GDP numbers from the UK at 10:30CET, business climate indicator and consumer confidence from the Euro-zone at 11:00 CET will take center stage, along with consumer confidence numbers from the US at 16:00 CET.

Have a nice day.

Emman Xuereb
RTFX Ltd
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