MORNING BRIEFING: Risks fears return, GBP and EUR first vitims!

[RTFX-Trading]

MORNING BRIEFING: Risks fears return, GBP and EUR first vitims!

What’s new :
United States: at 14:30 CET, GDP statistics for the fourth quarter 2009
United States: The Fed wants to verify the role of American firms in the Greek loans
Great Britain: The Sterling at its lowest since 9 months against the USD
Great Britain: at 10:30 CET, GDP statistics for the fourth quarter 2009
Euro zone: German banks are reluctant of lending to Greece!
Precious Metals: rumors of purchases by China
Japan: The country still faces deflation?

Today:


Rates in Asia and Indices:
EURUSD: 1.3604-1.3530.
USDCHF: 1.0817 - 1.0757.
GBPUSD: 1.5295-1.5234.
EURJPY: 121.46-120.66.
USDJPY: 89.49 - 89.05.
DowJones: 10'321 .03 -0.51%
NASDAQ: 2'234 .22 -0.21%
S & P 500: 1'102 .94 -0.21%
Nikkei: 10'126 .03 +0.24%
Shanghai: 3'061 .83 +0.04%
Gold: $ 1'108 .95
Crude Oil: $ 76.60
 
Comments:

To monitor at 14:30 CET, the publication of U.S. GDP statistics for the fourth quarter 2009, forecast at 0.60%, unchanged from the previous quarter.
In his testimony before Congress, FED’s M. Bernanke addresses the role of houses like Godman Sachs in the use of derivatives to help Greece to meet its financial obligations, adding that the use of such tools could destabilize a company or a country and become counterproductive.
The EURUSD pair reached its lowest level in 9 months, which did not prevent British citizens to be more optimistic for the second consecutive month, the index of consumer confidence gaining 3 points in February.
The markets will follow closely the publication this morning at 10:30 CET of the GDP statistics for the fourth quarter of 2009 in Great Britain, a figure expected at 0.20%. In case of bad results, we could see the GBP continue its slide into the depths!
While the Greek term loans fast approaching, German banks are reluctant to renew loans to Greece, uncertainties related to the Greek crisis discouraging risk taking.
After winning nearly 1% Monday on rumors that China would be willing to buy a part of the IMF (International Monetary Fund) reserves, gold should stay well bid.
With a drop of 1.2% for the month of January in the price index for basic consumption (excluding food and energy), Japan is experiencing the 11th consecutive month of decline, confirming that the country is not yet emerging from deflation. This could push the BoJ to inject liquidity to stimulate consumption, leaving little hope for a rate hike in the short term. The end of the fiscal year and the uncertainties on the EUR and GBP nevertheless continue to support the JPY.

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.