MORNING BRIEFING : FED cons Mr Obama’s speech, double-edged sword for the U.S.

[RTFX-Trading]

MORNING BRIEFING :  FED cons Mr Obama’s speech, double-edged sword for the U.S.

What’s new :

USA: FED, interest rates unchanged as expected
USA: After his re-election by his peers, Mr. Bernanke to be confirmed by Senate
USA: Restarting growth and curb deficits - targets of Mr. Obama
Japan: Prospects of good results for some main companies  support the Nikkei
Switzerland: In Davos Mr Sarkozy calls for respect for G20 commitments

Today:



Rates in Asia and Indices: 

EURUSD: 1.4039 - 1.3936.
USDCHF: 1.0557-1.0492.
EURUSD: 1.6254 - 1.6136.
EURJPY: 126.93 - 125.88.
USDJPY: 90.50 - 89.87.
Dow Jones: 10'236 +0.41%.
NASDAQ: +0.80% 2'221.
S & P 500: 1'097 +0.49%.
Nikkei: 10'414 +1.58%.
Shanghai: 2,983 -0.11%.
Gold: $ 1'091 .90.
Crude oil: $ 72.4

Comments:

The U.S. Federal Reserve has kept its interest rates unchanged as expected by the market. It also reaffirmed its intention to keep rates low to support economic recovery. Mr. Bernanke after his reelection as head of the Fed by his peers is awaiting confirmation by the Senate, which should be done this afternoon. The FED’s statements a little more optimistic on the economy have also supported initially the U.S. and the American Stock Exchange. In his speech on the State of the Union Address, President Obama has promised his fellow citizens to boost growth and curb the explosion of deficits. But his enlistment to double exports in five years suggests that the U.S. might favor a weaker dollar to get there. What about the direction of the dollar?
In Japan the Tokyo Stock Exchange, reassured by the speech of Mr. Obama and the prospect of good quarterly results from major Japanese companies, rebounded, while the yen continued to suffer from low interest rates.
At the 40th Forum of Davos, President Sarkozy wants a more fulfilling the commitments of the G20 and especially on prudential rules for the banking system.

Good day.

Pascal Bovay

RTFX Ltd
Trading desk

RTFX Ltd is licensed to conduct investment services business by the Malta Financial Services Authority. This information does not constitute an offer or solicitation and is provided for information purposes only. This information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of RTFX Ltd at the time of preparation. They are thus subject to change without notice. RTFX Ltd believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by RTFX Ltd and no liability in respect of any errors or omissions, including any third party liability, are accepted by RTFX Ltd or any director, officer or employees.