G20 Summit in London, US stocks welcoming “toxic” plan.

[RTFX-Trading]

G20 Summit in London, US stocks welcoming “toxic” plan.

What's new:

US: Increase in weekly jobless claims
US: Q4 GDP falls to -6.3%
Switzerland: KOF revised forecast is lower
UK: Retail Sales fall

Today:

10h30 UK: Final UK Q4 GDP exp -1.5%, previous -0.7%
11h00 Euro-zone: Industrial New Orders (JAN) exp -6.0%, previous -5.2%
11h30 Switzerland: KOF Swiss Leading Indicator, exp -1.55, previous -1.44
13h30 US: Personal Income (FEB) exp -0.1%, previous 0.4%
13h30 US: Personal Spending (FEB) exp 0.2%, previous 0.6%
13h30 US: Univ. of Michigan Confidence (MAR) exp 56,, previous 56,3

Overnight Ranges & Indices:

EURUSD: 1.3592 - 1.3522
USDCHF: 1.1278 - 1.1224
GBPUSD: 1.4495 - 1.4429
USDJPY: 98.84 - 98.00
DowJones: 7924 +2.25%
Nasdaq: 1281.3 +3.61%
Nikkei: 8927 -0.11%
Gold: $933 +0.6%
Oil: $53.66 -1.25%

Comment:

The Swiss Franc and the British Pound were heckled yesterday following the downward revision of the Swiss KOF forecast and the fall in UK retail sales. These two currencies should again be relatively volatile this morning. The GDP figures for Q4 in the UK are due at 10h30, while the Swiss leading indicator KOF should be announced lower at 11h00.

Yesterday we had a relatively calm day. Despite rising unemployment and a decline in GDP, the market remains optimistic on the US plan to rid the financial system of $1 trillion in toxic assets and thus public funds are interested in this plan. The DowJones gained 2.25%, Nasdaq 3.38% and the S&P 2.38%, brought with them an increase in "Carry Trades". The NZD/JPY reached 57 yesterday, exceeding
the previous yearly high of 56.33 reached on the 6th of January.

We are not expecting any major movements today, the markets are expected to be on 'stand-by', the G20 summit in London is approaching fast and it will mark the international debut of Obama on the international scene. The revival of global growth and financial system reform will be the two major issues discussed.

Good Day

Nicolas Longchamp
Trading desk.
Realtime Forex.
Geneva/Switzerland.