MORNING BRIEFING: The carry trades fell and the Dollar rose after falling Asian stock markets.

[RTFX-Trading]

MORNING BRIEFING: The carry trades fell and the Dollar rose after falling Asian stock markets.

What’s new:
US: homes sales boosted by tax credit.
Euro area: service sector at its highest since 2 years.
Euro Zone: Trichet repeated his support for a strong Dollar.
Germany: manufacturing sector back up.

Today:


Rates in Asia and Indices:
EURUSD: 1.4971 - 1.4888.
USDCHF: 1.0153 - 1.0094.
EURUSD: 1.6619 - 1.6519.
EURJPY: 133.32 - 132.02.
USDJPY: 89.07 - 88.56.
Dow Jones: 10'450 +1.29%.
NASDAQ: 2'176 +1.40%.
S & P 500: 1'106 +1.36%.
Nikkei: 9'401 -1.01%.
Shanghai: 3'260 -2.34%.
Gold: $1'165.
Crude oil: $77.56.
 
Comments:
Home Sales in United States in October reached the fastest pace in over two and a half years, however, this strong increase is mainly due to the favor of a tax credit granted by the government.
 
The important number, which is expect today at 10:00 CET is the IFO index of the German business climate which will inform us about the health of the business sector in Germany. Important figures are expected this afternoon as well from the United States, as the consumer confidence index will be published at 16:00 CET.

The EUR/USD is still stuck between 1.4800 - 1.5100, while the "carry trades" are a bit under pressure this morning after falling Asian stock markets, the Nikkei was down 1%, while the Chinese stock market displays -2.34 %.

Have a 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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