MORNING BRIEFING: Bernanke is closely following the Dollar's decline.

[RTFX-Trading]

MORNING BRIEFING: Bernanke is closely following the Dollar's decline.

What’s new:
FED: Bernanke is closely following the Dollar's decline.
FED: Bernanke fears a fairly high unemployment in late 2010.
Oil: price increases by 3% in New York.
FED : Fisher concerned about the high level of public debt.
Metals: Gold hit a new high against the Dollar.
US: Retail sales up 1.4% in October.
US: drop "Empire State" index in November.
Eurozone: Inflation still negative in October to -0.10%.

Today:


Rates in Asia and Indices:
EURUSD: 1.4999 - 1.4935.
USDCHF: 1.0106 - 1.0061.
EURUSD: 1.6866 - 1.6798.
EURJPY: 133.59 - 132.90.
USDJPY: 89.16 - 88.83.
Dow Jones: 10'406 +1.33%.
NASDAQ: 2'197 +1.43%.
S & P 500: 1'109 +1.45%.
Nikkei: 9'729 -0.63%.
Shanghai: % 3'292 v.
Gold: $1,135.
Crude oil: $78.67.
 
Comments:
Yesterday evening, the Fed chairman, Ben Bernanle said that the US economy will continue to grow next year and its fundamental strength will help the Dollar to remain strong, but growth will remain moderate. However, the Fed chief warned that the weak job market and continuing tight conditions prevailing in the credit markets would prevent the growth to be as strong as it would have been welcomed by the central bank. Somewhat unusually, the Fed chairman also talked about the Dollar, which depreciated against the backdrop of recent rebound in financial markets and recovery in global economic activity. The market interprets the Fed's statement as pessimistic, but this has not led to significant changes in the exchange market. The EUR/USD is still taped between 1.4800 - 1.5100.

That night, the Australian Dollar fell to 0.9320 US Dollar after the release of minutes from the last meeting of the Bank of Australia, who has raised doubts about another rate hike at its next meeting monetary policy.

Busy day in terms of economic news today, with the UK CPI at 10:30 CET, followed by the PPI at 14.30 CET, net capital inflow at 15:00 CET and Industrial Production at 15:15 CET.

Have a good day.

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
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