Markets expected to come alive in the afternoon, after ADP Report from the US

[RTFX-Trading]

Markets expected to come alive in the afternoon, after ADP Report from the US

What’s new:
United States: Concerns about the auto markets remain
Japan: Tankan disappointing. -58 after 1Q 2009
China: Monetary reforms urgent
New Zealand: Lower, after comments by Central Bank

Today:
08h00 Euro-zone: Retail Sales, exp 0.2%, previous -0.9%
09h30 Switzerland: PMI index, exp 33.0, previous 32.6
09h48 France: PMI index, exp 36.3, previous 34.8
09h53 Germany: PMI index, exp 32.4, previous 32.1
09h58 Euro-zone: PMI index, exp 34.0, previous 33.5
10h30 UK: PMI index, exp 35.0, previous 34.7
14h15 US: ADP Employment Change, exp -655,000, previous -697,000
16h00 US: Construction Spending, exp -1.8%, previous -3.3%
16h00 US: PMI index, exp 36.0, previous 35.8
16h00 US: Pending Home Sales, exp 1.0%, previous -7.7%


Overnight Ranges and Indices:
EURUSD: 1.3267 – 1.3167
USDCHF: 1.1458 – 1.1371
GBPUSD: 1.4366 – 1.4273
USDJPY: 99.46 – 98.22
DowJones: 7608 -1.2%
NASDAQ: 1528 +1.8%
Nikkei: 9274 +3.0%
Gold: $919
Crude Oil: $48.43


Comments:

Yesterday, the EURUSD traded in the range between 1.3343 and 1.3174. The USDJPY, after reaching the day low at 97.22, increased to 99.36. In the US, concern remains in the auto market, the Obama administration proposed a plan for the management of the bankruptcy of a major US automaker as the best solution for the future. The stock market seems to welcome a possible bankruptcy of the American automobile industry, the Tokyo is up 3%, while the foreign exchange market is more skeptical and the "carry trades" are down this morning.

The markets are expected to come alive later in the afternoon after 14h15, as the US ADP report will show us the gravity of the situation. 655,000 jobs are expected to be lost in the US private sector. Investors are also waiting for the ECB and the start of the G20 summit tomorrow, as well as US employment report Friday. We are in for a ‘hot’ end of week.

Good Day

Nicolas Longchamp
RTFX Ltd
Head Of Trading desk.
Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta