German economic sentiment at its highest since 2007, the G7 in Washington Friday.

[RTFX-Trading]

What’s new:
Wall Street: Stocks rise as banks rebound.
G7: The euro zone will do everything necessary to stabilize the financial system.
G7: Debate on replacing the dollar as the primary global reserve currency.
Germany: Close to bank debt plan.
Germany: index of the ZEW economic sentiment to 13, the highest since June 2007.
Spain: Fall in real estate, Home sales down 37.7% in 1 year.

Today:
10h30 UK: Jobless Claims change (MAR), exp 120'000, previous 138'400.
10h30 UK: ILO Unemployment Rate, exp +6.70%, previous +6.50%.
10h30 UK: Average Earnings inc bonus, exp +1.40%, previous +1.80%.
13h30 UK: Annual Budget presentation from by Minister of Finance Darling.
15h00 US: Geithner speaks on efforts to counter global recession.
19h00 US: Summers to speak about new ideas in development after the Financial Crisis.

Overnight rates and indices:

EURUSD:  1.2957 – 1.2911.
USDCHF:  1.1701 – 1.1666.
GBPUSD:  1.4686 – 1.4610.
EURCHF: 1.5123 – 1.5093.
USDJPY:  98.75 – 98.09.
DowJones: 7’969 +1.63%.
NASDAQ:  1’644 +2.2%.
S&P500: 850 +2.13%.
Nikkei:  8’725 +0.16%.
Crude Oil: $48.76 +0.43%.
Gold: $882 +0.20%.

Comments:

Financial leaders of G7 (finance ministers and central banker governors) are expected to gather in Washington this Friday to declare that the G7 will do everything necessary to stabilize the financial system, were some unexpected disaster to happen. Rumors are circulating that Euro zone countries are likely to tell Friday's G7 meeting the crisis may be at its worst now and a recovery could follow, although Japan and the United States may not share such optimism. The report of this meeting is therefore highly anticipated: “They will probably say that in some countries there are good signs but they will not say the crisis is over. They will probably say things are going a little bit better but avoid exaggeration“. The issue of replacing the dollar by the Special Drawing Rights from the International Monetary Fund (IMF) proposed by China will also be discussed.

Yesterday, the euro was stable around 1.2950 against the dollar, having broken the 1.3020-50 support. In April, Investor sentiment in Germany reached its highest level for almost two years thanks to the measures of recovery and low inflation.

Looks like it will be a busy morning for the pound sterling with figures on employment at 10:30, followed by Darling at 13:30. Later in the day, the dollar could be heckled after speeches by Geithner at 15h00 and Summers at 19h00.

The "stress test" that everyone was talking about yesterday has suddenly disappeared from discussion, however, I think it should not be taken lightly. I note that RTFX-Trend for USDCHF has turned bearish today and as we have noticed in the past, the USDCHF sometimes triggers a tendency to future funds. A confirmation of this bearish trend may be obtained tonight at 23h10 live on your trading platform.

Good Day

Emman Xuereb

RTFX Ltd
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