MORNING BRIEFING: Wednesday and Thursday Mr. Bernanke's testimony before Congress

[RTFX-Trading]

MORNING BRIEFING: Wednesday and Thursday Mr. Bernanke's testimony before Congress

What’s new :
United States: The country still needs low interest rates, according to Fed
United States: The markets are awaiting Mr. Bernanke’s earring before Congress
Euro zone: Greece in front of its borrowings renewal
Japan: Exit route for manufacturer Toyota?!
Australia: The continued expansion of the mining industry supports AUD
Switzerland: New rumors of BNS intervention

Today:


Rates in Asia and Indices:
EURUSD: 1.3636 - 1.3589.
USDCHF: 1.0774 - 1.0733.
GBPUSD: 1.5538-1.5475.
EURJPY: 124.24-123.73.
USDJPY: 91.29 - 90.94.
DowJones: 10'383 .38 -0.18%
NASDAQ: +0.10% 2'242 .03
S & P 500: 1'109 .17 -0.08%
Nikkei: -0.47% 10'352 .10
Shanghai: 2'976 .70 -0.89%
Gold: $ 1'115 .84
Crude Oil: $ 78.28
 
Comments:

According to Janet Yellen, president of the Central Bank of California, with an inflation rate too low for good, the U.S. should keep interest rates low.

The president of the Federal Reserve Bank Mr. Bernanke could echo this opinion during his testimony before Congress next Wednesday and Thursday, thus slowing somewhat USD Bulls. The next hearing of Mr. Bernanke seems to keep markets on standby.

With the maturity of its 5 billion Euro 10 years debt in the coming days, Greece will have to refinance through the market. If Greek Prime Minister Mr. Papandreou criticized the market and other European nations for their responsibility in the current level of Greek bonds, he also tried to persuade his fellow European leaders to guarantee the future Greek loans. The other Euro zone nations are reluctant, while the market gap between Greek and German government bonds 10 years yields is growing. In the med-term this should keep the pressure on the EUR.

In Japan, the risk of criminal investigation incurred against the automaker Toyota, after security problems encountered by some models, and the next hearing by the U.S. Congress of the firm boss, helps the Japanese market in losing ground. While with the repatriation of profits by the end of the Japanese fiscal year in March, the JPY remains strong.

In Sydney, the bosses of the RBA (Royal Bank of Australia) expect a continued growth of their mining industries until 2020, thanks to strong demand from developing countries like China and India. The inflationary pressures generated by the boom certainly push the RBA to continue its policy of rate hikes that began last year with an increase of 75 basis points of its cash rate.

 Due to renewed rumors of intervention by the BNS (Banque Nationale Suisse), which had bought the EUR against CHF, the Swiss currency lost ground against major currencies early this morning but especially against the EUR.

Good day

Pascal Bovay

RTFX Ltd
Trading desk
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