MORNING BRIEFING: The euro is approaching the psychological point of 1.5000 dollars.

[RTFX-Trading]

MORNING BRIEFING: The euro is approaching the psychological point of 1.5000 dollars.

What’s new:
ECB: Trichet says that excessive currency volatility is bad.
ECB: Trichet says a system of stable currency and solid is desirable.
Eurogroup: agree with the statements of U.S. policy on a strong dollar.
France: Lagarde reiterated his desire and need for a strong dollar.

Today:



Rates in Asia and Indices:
EURUSD: 1.4994 - 1.4953.
USDCHF: 1.0123 - 1.0092.
EURUSD: 1.6446 - 1.6374.
EURJPY: 135.85 - 134.87.
USDJPY: 90.79 - 90.08.
Dow Jones: 10'092 +1.00%.
NASDAQ: +0.90% 2'176.
S & P500: -0.81% 1'087.
Nikkei: 10'325 +0.81'%.
Gold: $ 1'066.
Crude oil: $ 79.75.
 
Comments:

Apple has announced good results; people will not reduce their purchases of Iphones, Ipods or Itunes despite the recession. This leads to higher stocks.

Mr. Bernanke, who spoke on global imbalances, acknowledged that the United States simply cannot continue to let the deficit get out of control. Mr. Trichet reiterated that excessive volatility is not good and that is a strong Dollar it is in the interests of his American colleagues.

The downtrend of the Dollar is still valid, stocks, gold and oil should continue to rise, while the US Dollar should continue to weaken. There are options at $1.5000 in EUR/USD. This is also a psychological point; it will be interesting to see the market’s reaction.

Good day.

Nicolas Longchamp
RTFX Ltd
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