Optimism for stock markets, the dollar seen rising

[RTFX-Trading]

Optimism for stock markets, the dollar seen rising


What's new:
United States: better than expected results from Wells Fargo.
United States: enrollment decline in unemployment.
U.S. trade deficit to lowest level since 1999.
United States: Summers said that the U.S. economy will experience a downslide in a few months.
Japan: Nikkei at its highest since 3 months.
Euro zone: Trichet can lower rate.

Today:
08:45 France: industrial production in February, due -1.10%, previous -3.10%.
08:45 France: Inflation in February, due 0.30%, previous 0.40%.
20:00 United States: the Federal budget, expected -147.5 billion, previous -48.21 billion.

Rates in Asia and Indices:

EURUSD: 1.3169 - 1.3089.
USDCHF: 1.1624 - 1.1560.
GBPUSD: 1.4683 - 1.4616.
EURCHF: 1.5231 - 1.5206.
USDJPY: 100.72 - 100.22.
DowJones: 8'084 +3.14%.
NASDAQ: +3.89% 1,652.
S & P 500: 856 +3.81%.
Nikkei: 8'964 +0.54%
Gold: $ 881

Comments:

The dollar benefits from stock market optimism; the DowJones index gained 247 points yesterday to 8,084, the S & P took 32 point, or 3.81% to 856.74, while the Nasdaq advanced 3.89% to 1,652 .54. The stock market welcomed the better than expected results from Wells Fargo; the decline in weekly unemployment registration and the U.S. trade deficit to lowest level since 1999. The statement of former Secretary of the Treasury, Summers, who said to expect that the U.S. economy in "free fall" should subside in a few months with the first effects of measures to boost and support for some areas taken by the federal government gives color to the greenback.

In England, the BoE left its rate unchanged at 0.5%, it announced that it would continue its program of quantitative easing set to £ 75 billion.

The euro was meanwhile manhandled; Jean-Claude Trichet, the president of the European Central Bank, confirmed market expectations by saying that the ECB could still carry out further reductions of its base rate. In an interview made to the newspaper "Le Monde", he also said that 2009 would be a bad year for the euro area economy, but he saw a recovery in 2010 if officials implement extraordinary measures (i.e. quantitative easing).

Yesterday could herald a change in the trend of the greenback. In talking with traders in the market, the greenback has the favor of investors. As we have noticed in the past, changes in trend occurred after the Easter weekend. A rising dollar tends to establish.

Good Easter weekend.

Nicolas Longchamp
RTFX Ltd
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