MORNING BRIEFING: GDP and ADP employment report from the US due this afternoon.

[RTFX-Trading]

MORNING BRIEFING: GDP and ADP employment report from the US due this afternoon.

What’s new:
Japan: Housing starts worse than expected.
United Kingdom: GDP data in line with expectations.
Australia: Strong Retail sales numbers, at 0.9% M/M versus 0.5% market expectations.
Euro-zone: Bundesbank Chairman Weber said that international financial system has stabilized and exit strategies were needed.
United States: Disappointing consumer confidence figure.
United States: Dallas Fed President Fisher expects policy reversal to be as fast and intense as the easing in 2007-2008.
United States: GDP and ADP employment figures expected today.

Today:


Overnight Rates and Indices:
EURUSD: 1.4644 – 1.4577.
USDCHF: 1.0368 – 1.0322.
GBPUSD: 1.6058 – 1.5951.
EURJPY: 132.03 – 131.01.
USDJPY: 90.41 – 89.54.
DowJones: 9'742.20 -0.48%.
NASDAQ: 2’124.04 -0.31%.
S&P 500: 1’060.61 -0.22%.
Nikkei: 10’102.50 +0.02%.
Shanghai: 2’785.28 +1.09%,
Gold: $996.75.
Crude Oil: $67.21.
 
Comments:

The US dollar performance was mixed yesterday following a disappointing consumer confidence number yesterday. However, S&P Case Shiller home price index came in better than expected. Dallas Fed President Fisher said yesterday that the Fed’s policy reversal could be as fast and intense as the easing in 2007-08. It should be noted though that the Dallas Fed President is not currently an FOMC voting member until 2011.

Bundesbank Chairman and ECB council member Weber said yesterday that the international financial system has stabilized and that exit strategies were now needed. Today, unemployment numbers from Germany are expected at 09:55 CET. The numbers should show a 20K increase in unemployment and a rate rise to 8.4%.

From the US, the ADP employment report is expected at 14:15 CET, which should show a 200k loss in jobs compared to 298K in August, while GDP and Core PCE numbers will take center stage at 14:30 CET.

Have a nice day.

Emman Xuereb
RTFX Ltd
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