MORNING BRIEFING: More bank’s transparency in Europe

[RTFX-Trading]

MORNING BRIEFING: More bank’s transparency in Europe

What’s new :
United States: Pace of recovery slowing?
Great Britain: The government is saving £ 11.5 billion
Spain: Good demand for government bonds
Euro area: Agreement for the publication of bank stress tests
Switzerland: SNB appears to allow the CHF to his fate
Japan: Government unveils strategy
China: Don’t touch my Yuan!

Today:


Rates in Asia and Indices:
EURUSD: 1.2413 - 1.2375.
USDCHF: 1.1128- 1.1093.
GBPUSD: 1.4844 - 1.4806.
EURJPY: 112.80 – 112.39.
USDJPY: 91.08 – 90.74.
DowJones: 10'434.17 +0.24%
NASDAQ: 2'307.06 +0.05%
S & P 500: 1'116.04 +0.13%
Nikkei: 9'988.75 -0.11%
Shanghai: 2'543.87 -0.64%
Gold: $ 1'244.65
Crude Oil: $ 78.71

Comments:
The increase in jobless claims last week and a business index for June released at 8 by the Philadelphia Fed yesterday below the forecasted 20.9, suggest a slowdown in the pace of the recovery in the United States.

In announcing the suspension or cancellation of GBP 11.5 billion for projects of the previous government, the ruling coalition in Britain has started the path that would allow the reduction of the British budget deficit. A suspension of future projects for more than £ 8 billion is also planned. Those who consider the GBP as undervalued will feel encouraged ...

The good market response for the auction of treasury bills in Spain yesterday gave support to the Euro, which has rebounded and is at the highest since May 28.

At their meeting yesterday in Brussels, EU leaders have agreed to publicize the stress test results of major European banking institutions, thus helping to restore markets confidence through greater transparency.

At its meeting yesterday, the SNB (Swiss National Bank) has left its benchmark rate unchanged at 0.25%. In its comments, the SNB said that the risks of deflation in Switzerland had largely disappeared. Reading between the lines, it seems that for now the SNB should cease its intervention in the foreign exchange market, opening the door to an appreciation of the CHF.

Before the elections for the parliament to be held July 11, the Japanese government announced this morning its strategy to combat the risk of deflation still existing in Japan. But plans to stimulate certain parts of the economy to revive growth do not seem to convince the economists, who see them as 'wishful thinking'.

"The RMB is the Chinese currency, and I do not think it should be discussed on an international level” said the Chinese Vice Minister of Foreign Affairs, who will represent his country in the G-20 summit to be held in South Korea, adding that the Chinese government will decide its policy on exchange rates according to both domestic and global economic situations.

Have a good week end

Pascal Bovay

RTFX Ltd
Trading desk
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