Renewed concerns about the U.S. banking sector, reduced grants and "carry trades"

[RTFX-Trading]

Renewed concerns about the U.S. banking sector, reduced grants and "carry trades"

What's new:
United States: the appetite for risk is deteriorating again.
England: Bank of England meeting this week.
European Union: Economist Bin Smaghi gives his views on international intervention.

Today:
10:30 GB: February industrial production, expected -1.20%, previous-2.60%.
10:30 UK: Manufacturing output in February, expected -1.50%, previous -2.90%.
11:00 EU: 4th quarter GDP, expected -1.50%, previous -0.20%.
16:00 EU: index of consumer sentiment IBD April, last 45.3
21:00 EU: consumer credit in February, expected-3.5 billion, previous 1.60 billion.

Rates in Asia and Indices:

EURUSD: 1.3421-1.3321.
USDCHF: 1.1423 - 1.1348.
GBPUSD: 1.4778 - 1.4638.
EURCHF: 1.5243 - 1.5155.
USDJPY: 101.11 - 100.22.
DowJones: 7'975 - 0.52%
NASDAQ: 1'606 - 0.93%
Nikkei: 8'839 - 0.20%
Gold: $ 877

Comments:

The EURUSD remains under pressure this morning; the pair experienced the first support at 1.3322 01h59 CET, and then experienced a marginal surge . The GBPUSD has reached its first support at 02:00 CET. The USDJPY hit first resistance at 100.32 at 02:00 CET. (You can find all these new real-time in your trading platform suppliers RTFX for media / pivot / resistance by Nostromo RTFX Ltd for technical analysis.)

Concerns about the U.S. banking sector continue to emerge. This report was confirmed this morning in the English newspaper Times which states that the International Monetary Fund is about to revise its forecasts on the toxic assets held by banks, building societies and insurance institutions. It seems that the IMF is seeking to increase its forecast for U.S. toxic assets from next year. The S & P has dropped during the announcement, only to close 0.80% lower in the late afternoon. The "carry trades" has followed suit. EURJPY is at 134.50, the GBPJPY stands at 147.70, the NZDJPY is at 58.50. The dollar, which benefits from its status of safe haven, is growing.

The Fed has also announced a new temporary currency swap with the BoE, BoJ, ECB and SNB to allow the Fed to provide liquidity in foreign currencies to the U.S. financial system: the amounts are EUR 80Mrds £ 30Mrds, 10Mrds JPY and CHF 40Mrds.

Yesterday, Bin Smaghi, a board member of the ECB, considered the situations in which an intervention on the foreign exchange market was necessary. He said that exchange rates are subject to episodes of exaggerated increases and decreases. The public (in the form of verbal involvements or direct interventions on the foreign exchange market) could be justified. It seems that the situation in the neighboring countries of Eastern Europe, have an impact on the single currency, which could prompt the ECB to support the currencies of Eastern Europe.


Good Day

Nicolas Longchamp
RTFX Ltd
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