MORNING BRIEFING: the Dollar is rising, earning from its status as a safe haven currency.

[RTFX-Trading]

MORNING BRIEFING: the Dollar is rising, earning from its status as a safe haven currency.

What’s new:
Germany: stronger-than-expected import prices.
United States: the Dollar remains the reserve currency.
Oil: Prices are up more than 1% in New York.
US: rising unemployment weighs on the confidence of Americans in October
US: Case / Shiller index increases for the fourth consecutive month.
Euro area: unprecedented decline in private lending in September.
US: are towards a revaluation of the Chinese Yuan.

Today:


Rates in Asia and Indices:
EURUSD: 1.4841 - 1.4788.
USDCHF: 1.0229 - 1.0192.
EURUSD: 1.6405 - 1.6339.
EURJPY: 135.96 - 134.84.
USDJPY: 91.80 - 91.07.
Dow Jones: 9'882 +0.14%.
NASDAQ: 2'116 -1.20%.
S & P500: 1,063 -0.33%.
Nikkei: 10'075 -1.35%.
Shanghai: 3,016 -0.17%.
Gold: $1'039.
Crude oil: $79.36.
 
Comments:
The Dollar is rising above 1.0200 against the Swiss Franc and close to 1.4800 against the Euro, following disappointing statistics in the United States. The US consumer confidence has plummeted, which should weigh on household spending, which represent nearly 70% of economic activity in the United States. The resumption of growth as expected could be postponed. These evil figures would bring down the Dollar, but as the market believes that the Dollar is a safe haven currency, any bad economic news is bullish for the Dollar.

The Dollar also received support from the statement of Treasury Secretary Geithner, who continues to reassure markets on the status of the Dollar as the main reserve currency in the world: "The dollar remains the principal reserve currency for a long time." He added that the United States will take all steps necessary to revive the economy.

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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