MORNING BRIEFING: The Euro rises; is it a rebound or change in trend?

[RTFX-Trading]

MORNING BRIEFING: The Euro rises; is it a rebound or change in trend?
    
What’s new?
United States: President Obama’s recovery plan expected for today.
United States: Largest daily increase in Wall Street in 3 months.
Japan: The Nikkei is rising
Euro zone: The Euro rebounds
Australia: EUR / AUD is approaching a key support level.

Today:


Overnight Rates and Indices:
EURUSD: 1.3782 – 1.3751.
USDCHF: 1.0673 – 1.0650.
GBPUSD: 1.5794– 1.5760.
EURJPY: 124.49– 124.07.
USDJPY: 90.37 – 90.13.
DowJones: 10'268.81 +1.68%
NASDAQ: 2'214.19 +1.40%
S&P 500: 1'094.87 +1.80%
Nikkei: 10'306.83 +2.72%
Shanghai: 3'018.13 +1.09%
Gold: $1'118.05
Crude Oil: $75.90

Comments:

Today at 16:25 CET, President Obama is scheduled to comment on the White House report on economic measures to fight against the economic crisis. The USD 787 billion budget and the tax cuts are clearly intended to prevent further recession and create new jobs, while decreasing the unemployment rate from 9.7% remains the priority of the government.

Driven by the excellent results posted by companies, a better than expected manufacturing index for the state of New York and investor sentiment that the recovery in the United States is well on track, helped the US Stock Exchange achieve its best daily result in more than three months.

The support shown by President Obama to build new nuclear plants in the United States and a renewed optimism about growth in the US supported the Japanese stock market, up by 2.72%, the highest since December 3rd, as many Japanese companies hold significant stakes in US nuclear plants.

The strong rebound of the Euro on Tuesday was due primarily to an overselling of the European currency and a technical correction, as the US Dollar did not enjoy the renewed optimism concerning the US economy. The fundamentals on the Euro did not change, as although Greece got a "break" of 30 days, putting the Greek economy back on track and the budget deficits of Spain and Portugal are still problems to be solved.

The comments from the RBA (Reserve Bank of Australia) on the likely increases in interest rates this year has provided support to the Australian Dollar, EUR-AUD should find supports at 1.5138 area.

Good Day.
Pascal Bovay
Trading Desk
RTFX Ltd
Risk Disclaimer