MORNING BRIEFING : Euro still under pressure

[RTFX-Trading]

MORNING BRIEFING :  Euro still under pressure

What’s new:
USA:  Mr. Bernanke confirmed by a large majority in the Senate
United States:  to follow this afternoon, the GDP figures for 4th quarter
Europe:  dangerous weaknesses for several countries in the eurozone (Brüderle)
Germany:  Rising unemployment weaker than expected
Switzerland:  In Davos Mr. Papandreou reiterated that Greece will not leave the euro zone
Japan:  Fears for EUR consolidating JPY

Today:


Rates in Asia and Indices:
EURUSD: 1.3972-1.3912.
USDCHF: 1.0548-1.0506.
EURUSD: 1.6159 - 1.6110.
EURJPY: 126.01 - 124.81.
USDJPY: 90.29 - 89.59.
Dow Jones -1.13% 10'120.
NASDAQ: 2'179 -1.91%.
S & P 500: 1'084 -1.18%.
Nikkei: -2.08% 10'198.
Shanghai: 2'993 -0.01%.
Gold: $ 1'082 .30.
Crude oil: $ 72.27.

Comments:

Despite the doubts caused by a few missteps, by a large majority the U.S. Senate reconfirmed Mr. Bernanke at the helm of the Federal Reserve Bank for a second term of 4 years, which should support the USD.

The Euro remains under pressure at its lowest level against the USD in 6 months and in 9 months against the JPY.  Mr. Brüderle’s  statements (German Minister of Finance), highlighting the dangerous weaknesses for several countries in the Eurozone does not support the EUR, despite a rise in German unemployment , weaker than expected, suggesting an improvment Despite the doubts caused by a few missteps, is a large majority that the U.S. Senate reconfirmed Mr. Bernanke at the helm of the Fed (Central Bank of the United States) for a second term of 4 years, which should support the USD.

At the Davos Forum, Greek Prime Minister Mr. Papandreou reiterated that Greece will not leave the euro zone, adding that his country has not requested aid from other countries in the eurozone. He said the new Greek loan was 5 times oversubscribed and there is no need to seek funds elsewhere. This does not prevent the markets feared insolvency of Greece.

The JPY also benefits from the weakness of the EUR, despite continued fears of deflation in Japan, highlighting the pressure on the BOJ (Bank of Japan) for an easing of monetary policy.  of the economy.

Good weekend.
Pascal Bovay
RTFX Ltd

Trading desk
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