MORNING BRIEFING: Growth back in the United States?

[RTFX-Trading]

MORNING BRIEFING:  Growth back in the United States?

What’s new :
United States: better than expected growth, according to the NABE
United States: After last week’s rally, the USD corrects
Euro Area: The Euro will face other serious test says George Soros
Asia: The Year of the Tiger has started!
Asia: No rate hike in China for now
Switzerland: Tightening of monetary policy over the medium term

Today:


Rates in Asia and Indices:
EURUSD: 1.3653 - 1.3602.
USDCHF: 1.0773 - 1.0739.
GBPUSD: 1.5496 - 1.5431.
EURJPY: 125.24 - 124.67.
USDJPY: 91.90 - 91.59.
DowJones: 10'402.35 +0.09%
NASDAQ: 2'243.87 +0.10%  
S & P 500: 1'109.17 +0.22%
Nikkei: 10'400.47 +2.74%
Shanghai: 3'024.30 +0.20%
Gold: $ 1'125.34
Crude Oil: $ 78.55
 
Comments:
The National Association of Business Economics estimates that a “healthy expansion is under way”, with  projected 50,000 new jobs per month for the first quarter of 2010, the unemployment rate returning to 9.6% by the end of 2010. But after last week sharp rise of the USD, the US currency could see some profit taking and correction.

In an article published by the Financial Times, Mr. Soros said once the problem of Greece is resolved, the risks for Europe will be in having Spain, Italy, Portugal and Ireland also facing strong budgetary deficits , stressing the need for Europe to have more determined control of its bond markets.

After the Chinese New Year, Asian markets have reopened this morning, while the Nikkei celebrating in its own way the Year of the Tiger, ending with a gain of 2.74%, the highest since 3 weeks.

China will maintain the balance between the risks of inflation and growth targets, announced the Chinese news agency Xinhua, adding that monetary policy would remain flexible, dispelling any hopes of a rate hike in the near future.

In the “NZZ am Sonntag” Mr. Jordan (Vice-President of the Swiss National Bank) said that in the medium term there would be a tightening of monetary policy, although it was still too early for an increase in interest rates . His remark that the appreciation of CHF in recent weeks did not impede the economic recovery seems to temper the will displayed by the SNB to maintain the present EURCHF within narrow margins.

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.