MORNING BRIEFING: Investor’s risk appetite starts to fade

[RTFX-Trading]

MORNING BRIEFING: Investor’s risk appetite starts to fade

What’s new:
Asian: Asian Equities lower
France: BNP Paribas Faces downgrade by Fitch
Euro Zone: Rating agencies downgrade and comments reignited negativity
United Kingdom: Tough budget expected
Swiss Franc: Rises against the Euro on comments of no SNB intervention as yet
Japan: Japan announces ambitious fiscal targets

Today:



Rates in Asia and Indices:
EURUSD: 1.2353 - 1.2284.
USDCHF: 1.1123- 1.1076.
GBPUSD: 1.4797 - 1.4724.
EURJPY: 112.47 – 111.53.
USDJPY: 91.10 – 90.74.
DowJones: 10'442.41 -0.08%
NASDAQ: 2'289.09 -0.90%
S & P 500: 1'113.20 -0.39%
Nikkei: 10’131.76 -1.04%
Shanghai: 2'592.30 +0.24%
Gold: $ 1'237.10
Crude Oil: $ 78.11

 
Comments:

In early trading lower Asian indices are suggestive of a cooling of previous risk appetite. Against their major counterparts; the Euro lost 0.07 %, the US Dollar lost 0.14% and British Pound lost 0.26%. Fitch’s downgrade of BNP Paribas, and Moody’s concern on Spanish banks reignited some negativity and concerns about the Euro Zone banking sector.

In the United Kingdom the finance minister is expected to announce a tough budget with a mixture of spending cuts and taxes. Economists have expressed concern that introducing tight fiscal measures too fast might push UK back into recession.

In Switzerland comments by the SNB vice chairman that the central bank has no intention to intervene for now – provided support for the Swiss franc and pushed it to new highs against the Euro

For the day EURUSD hourly and four hourly charts suggest that to the upside 1.2420/1.2550 could be possible targets; to the downside 1.23/1.2255 prove to be significant horizontal levels – a break of the 1.2255 region could imply a resuming of the medium to longer term bearish trend. On the 5 minute charts trading below 200 day moving average maybe suggestive lack of momentum for moving upwards.


Good day,


Rudolf Muscat
Trading desk

RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com
Risk Disclaimer