MORNING BRIEFING: The main event of the day is the FOMC meeting of the Fed at 20:15 CET.

[RTFX-Trading]

MORNING BRIEFING: The main event of the day is the FOMC meeting of the Fed at 20:15 CET.

What’s new:
ECB: Axel Weber said that economy is not yet stabilized.
United States: increase of 0.90% of Industrial orders in September.
France: 17% increase in the number of unemployed in one year.
Spain: Unemployment rose for the third consecutive month.
England: Lloyds and RBS forced to sell assets.

Today:


Rates in Asia and Indices:
EURUSD: 1.4754 - 1.4702.
USDCHF: 1.0278 - 1.0245.
EURUSD: 1.6481 - 1.6401.
EURJPY: 133.53 - 132.50.
USDJPY: 90.52 - 90.05.
Dow Jones 9'771 -0.18%.
NASDAQ: 2'057 +0.40%.
S & P 500: 1'045 +0.24%.
Nikkei: 9'844 +0.42%.
Shanghai 3'117 +0.11%.
Gold: $1'083.
Crude oil: $79.35.
 
Comments:
The main event of the day is the monetary policy meeting of the Fed at 20:15 CET. All eyes will be on potential changes to the statement that follows the announcement on interest rates, which is expected to leave interest rates unchanged. The FED should not change the tone of its last statement, which was a policy of low interest rates for an extended period.

As the majority of investors expect the report to be unchanged, they are positioned upwards on metals (gold hit a new historic high at $ 1,080 an ounce) against the Dollar and the "carry trades”. The rise yesterday on gold is also due to the purchase of 200 tons by the central bank of India, the biggest single purchase by a central bank in 30 years.

My view is that FED FOMC meeting will not make major changes. The EUR/USD could remain as high as 1.4860, which was reached in late October and then retest the 55 day moving average at 1.4635 and after that it should test lower.

Good day.

Nicolas Longchamp
RTFX Ltd
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