MORNING BRIEFING: Fed’s Beige Book shows further signs of improvement. ECB decision today.

[RTFX-Trading]

MORNING BRIEFING: Fed’s Beige Book shows further signs of improvement. ECB decision today.

What’s new:
Germany: CPI edges higher.
Euro zone: ECB decision due today.
Australia: Strong Labour data.
United States: Fed’s Beige book reports further expansion.

Today:


Overnight Rates and Indices:
EURUSD: 1.4555 – 1.4496.
USDCHF: 1.0195 – 1.0160.
GBPUSD: 1.6309 – 1.6264.
EURJPY: 133.61 – 132.40.
USDJPY: 91.93 – 91.29.
DowJones: 10’680.77 +0.50%
NASDAQ: 2’307.90 +1.12%
S&P 500: 1’145.68 +0.83%
Nikkei: 10’907.68 +1.61%.
Shanghai: 3’215.55 +1.35%,
Gold: $1’138.5 +0.18%
Crude Oil: $80.01 +0.45%
 
Comments:

The EURUSD reached 1.4579 yesterday, only to suffer a massive sell off following the re-emergence of concerns over Greece’s solvency. Interestingly the major retreated at the 38% Fibonacci retracement of the move from 1.5141 to 1.4217.

The Fed’s Beige Book was released to a slightly more positive tone than expected. The report said that conditions have improved further and 10 out of 12 districts indicated some increased activity or improvements in conditions. Meanwhile Chicago Fed President Evans said he is unconcerned with inflation and said the dollar will take care of itself without the need of the Fed.

Today focus is on the ECB decision at 13:45 CET and the following news conference by President Trichet at 14:30 CET. We do not expect any surprises and Trichet will likely maintain vigilance towards inflation.

Have a nice day.

Emman Xuereb
Trading Desk
RTFX Ltd
Risk Disclaimer