MORNING BRIEFING: Renewal at the head of the Fed

[RTFX-Trading]

MORNING BRIEFING: Renewal at the head of the Fed

What’s New:
Europe: Nowotny (ECB) stressed the need for China to change its exchange rate policy
Germany: Unemployment figures expected this week
U.S.: Obama not worried about reelection of M. Bernanke (Fed)
Japan: increased morale of industrial
China: Economists optimistic about an increase in GNP to 9.5% with inflation at 3%
Switzerland: comments Hildebrand weight on the Swiss Franc

Today:



Rates in Asia and Indices:
EURUSD: 1.4174 - 1.4134.
USDCHF: 1.0420 - 1.0384.
EURUSD: 1.6144 - 1.6095.
EURJPY: 127.91 - 127.08.
USDJPY: 90.32 - 89.81.
Dow Jones -2.1% 10'172.
Nasdaq: -2.7% 2'205.
S & P 500: 1,116 -1.89%.
Nikkei: 10'512 -0.7%.
Shanghai: 3'115 -0.43%.
Gold: $ 1'101 .50.
Crude oil: $ 74.61.

Comments:

Markets will focus this week on the FOMC meeting and on the rest of the quarterly results of major U.S. firms, as well as the confirmation of Mr. Bernanke for a second term is expected at the head of the Federal Reserve.

With the uncertainties and fears still weighing on the major currencies (USD, EUR, GBP, Yen), the market seems to favor the Aussie and NZD this morning.

The exchange rate policy of China always attract the wrath of the official European Central Bank, who would see the yuan appreciate.

After the remarks of Mr. Hildebrand (SNB) in the Wall Street Journal, the Swiss franc weakened against the Euro, while the unemployment figures in Europe and particularly in Germany could weigh on the European currency.

Good day.

Pascal Bovay
RTFX Ltd.
Trading Desk RTFX Ltd
Trading desk

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