Retail sales decline sharply in the United States, stock markets falling, the appetite for risk is deteriorating

[RTFX-Trading]

Retail sales decline sharply in the United States, stock markets falling, the appetite for risk is deteriorating.

What's new:
U.S. retail sales down 1.1% in March
United States: optimistic speeches of President Obama and the Fed chairman Bernanke.
Switzerland: UBS announces 2,500 layoffs in Switzerland and announces CHF 2 billion in losses for the first quarter of 2009.

Today:
14.30 United States: index of producer prices in March, due +0.20%, previous +0.40%.
14.30 United States: index of producer prices excluding alimen./energy, previous, reading of 0.20%.
14:30 U.S. Fed index cyclical NY April -35, previous -38.23
14.30 United States: real income, expected -0.30%, previous -0.30%.
15.00 U.S. net capital flows (ICT) in February, last - $ 43 billion.
15.15 United States: Industrial production in March, due -1.00%, previous -1.50%.
15.15 United States: March capacity utilization, expected 69.6%, previous 70.2%.
19.00 United States: index of home prices in April NAHB, expected 10, previous 9.
20:00 United States: publication of the Beige Book.


Rates in Asia and Indices:

EURUSD: 1.3276 - 1.3220.
USDCHF: 1.1412 - 1.1367.
GBPUSD: 1.4920 - 1.4859.
EURCHF: 1.5122 - 1.5078.
USDJPY: 99.14 - 98.15.
DowJones: 7,920 -1.71%.
NASDAQ: -1.07% to 1322.
S & P 500: 841 - 2.01%
Nikkei: -0.97% to8,757.
Gold: $ 892

Comments:

The appetite for risk continued to deteriorate; figures published by the United States retail sales for March fell 1.1%, while retail sales excluding automobiles declined sharply to 0.90%; however, an unexpected modest gain has surprised the market. These figures are a reminder to be cautious about the expectations of an upturn in the U.S. economy. The "Carry Trades" are under pressure, the Australian dollar fell against the greenback; it has reached the second support at 04h50 that night, the New Zealand dollar is also in a sharp decline nearing the second support to 0.5760. The EURJPY is also under pressure; it reached the 130.08 support limit this morning at 06:30. (This information is communicated in real time on your trading platform).

Speeches made by the United States President, Barack Obama, and the President of the Federal Reserve Bernanke, were cautiously optimistic. Mr. Bernanke said that the United States has recently seen signs that the slump in economic activity is expected to slow in May, for example in home sales, housing, consumer spending and new automobile sales. The market remains concerned about the possible bankruptcy of a major U.S. automaker, General Motors.

The EUR / JPY which is seen significantly lower this morning; Japanese investors are seeking to repatriate their funds invested in government bonds in the European Union.

In today’s early stages, the market should remain cautious, in anticipation of U.S. economic figures between 14.30 and 15.15 and the publication of the "Beige Book" later in 20:00.

 

Good Day

 

Nicolas Longchamp

RTFX Ltd
Head Office

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Tel:  +356 27 78 01 35

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