MORNING BRIEFING: the market is buying currencies with high rates of return.

[RTFX-Trading]

MORNING BRIEFING: the market is buying currencies with high rates of return.

What’s new:
FranceFillon : growth is expected to be more than 1% in 2010 and unemployment rising.
England: Brown support the BoE confirms £ 16Mrds privatization.
Holland: Dutch bank DSB placed under guardianship.
Nobel Prize in economics awarded to two American researchers Ostrom and Williamson, which for the first time a woman.
Germany: GDP should grow by 1.3% in 2010 according to DIW.
United States: Bullard sees growth of 2.5% to 3.0% in 2010.

Today:



Rates in Asia and Indices:
EURUSD: 1.4801 - 1.4764.
USDCHF: 1.0276 - 1.0250.
EURUSD: 1.5826 - 1.5749.
EURJPY: 133.05 - 132.53.
USDJPY: 90.06 - 89.62.
Dow Jones: 9'885 +0.21%.
NASDAQ: 2'139 -0.01%.
S & P 500: +0.44% 1,076.
Nikkei: 10'103 +0.87%.
Shanghai +1.13% 2'927.
Gold: $1,055.
Crude oil: $73.
 
Comments:

The dollar yesterday restored much of the gains made Friday, the market is turning to currencies that have higher returns, investors are betting on the results exceeding expectations for U.S. companies and particularly banking. The Australian dollar and New Zealand show significant increases against other major currencies. The volume of exchanges were weak yesterday, many traders were not present because of "Columbus Day" yesterday in the United States and a holiday in Japan and Canada.

The pound sterling has been the target of investors, it has hit a five-month low near $ 1.5700, after a study that British rates are at an extremely low level until 2011 and probably did not ascend level of 2% by 2014.

The outlook on U.S. rates are also not good, the Fed should not raise its key rates soon, which also weighed on the greenback.

The currencies that have a high rate of return, as the Australian dollar, New Zealand and Canada have the favor of investors, while the British pound, Japanese yen and U.S. dollar should continue to be under pressure.

Good day.

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com

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