MORNING BRIEFING: yield rally that triggered an equity sell off, a bond sell off, a commodity sell off, a carry trade sell off and a dollar rally

[RTFX-Trading]

MORNING BRIEFING: yield rally that triggered an equity sell off, a bond sell off, a commodity sell off, a carry trade sell off and a dollar rally

What’s new:
Oil: a barrel in NY ended down 2%.
France: slight acceleration in unemployment in France.
China : diversification of currency reserves, the long term.
Germany: decrease in consumer confidence in November.

Today:



Rates in Asia and Indices:
EURUSD: 1.4927 - 1.4849.
USDCHF: 1.0149 - 1.0199.
EURUSD: 1.6385 - 1.6286.
EURJPY: 137.37 - 136.82.
USDJPY: 92.32 - 91.94.
Dow Jones -1.05% 9'867.
NASDAQ: 2'141 -0.59%.
S & P500: -1.17% 1'066.
Nikkei: 10'212 1-45%.
Shanghai: 3'054 -1.58%.
Gold: $ 1'041.
Crude oil: $ 78.79.
 
Comments:

The stocks have suffered heavy falls yesterday amid expectations of seeing a complete program offering a U.S. federal tax credit of 8,000 dollars to taxpayers buying their first home. According to one study, this program may not be extended beyond November 30. The S&P Financial lost 2.51%, the Dow Jones real estate sector dropped 3.40%.

As anticipated in our report yesterday morning, the higher yield returns on the dollar will motivate investors to cover their short dollar positions built up in recent weeks. The EURUSD is currently a very important point around 1.4850. There a number of buyers in this area, a lot of stop-loss sellers are placed below 1.4800. Concerns EURJPY, the 138-139 area should attract many investors to enter short positions. There are sellers in the 92.30-50 area in USDJPY. The U.S. dollar should continue to rise in anticipation of the FOMC meeting next week, 1.4700 in EURUSD, USDCHF at 1.0300 and 135 in EURJPY should be reached in the coming days.
Good day.

Nicolas Longchamp
RTFX Ltd
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