MORNING BRIEFING: The Euro against the Dollar breaks the 200 daily moving average.

[RTFX-Trading]

MORNING BRIEFING: The Euro against the Dollar breaks the 200 daily moving average.

What’s new :
United States: rebound in capital flows (TIC) in November.
Germany: investor sentiment deteriorates further.
England: Inflation at its highest since April 2009.
Japan: deterioration of consumer sentiment in December.

Today:


Rates in Asia and Indices:
EURUSD: 1.4295 - 1.4166.
USDCHF: 1.0406 - 1.0318.
EURUSD: 1.6372 - 1.6282.
EURJPY: 130.33 - 129.21.
USDJPY: 91.36 - 91.06.
Dow Jones: 10'725 +1.09%.
NASDAQ: 1’895 +1.66%.
S & P 500: 1,150 +1.25%.
Nikkei: 10’737 -0.25%.
Shanghai: 3'184 -1.91%.
Gold: $1'133 .10.
Crude oil: $78.29.

Comments:
The Euro continued to fall after yesterday and is around its 200 day moving average. The Euro against the Dollar had finally to let go. A series of stop-loss selling below 1.4250 and 1.4200 have been executed in Asia tonight. Concerns about the financial situation of Greece and the further deterioration of investor sentiment in Germany are the two main causes. The next support is at 1.4117, which is the 38.2% of the last increase from 1.2456 to 1.5144. We still hear a series of stop-loss selling below 1.4100.

Rumors that the Banking Regulatory Commission in China has asked several commercial banks to stop issuing new loans, and the insistent pressure on the issue of greater flexibility of the Chinese Yuan, (which will be discussed at the next G7 meeting in early February) led to a third consecutive decline in the Chinese stock market. Investors are worried about China, resulting in reduced risk appetite (higher US Dollar and Japanese Yen and a decline in the Euro, Australian Dollar and New Zealand Dollar). The parities NZD/JPY and AUD/JPY are down this morning plus or minus 1%.

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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[sirajrasul]

thanks for the information.....