The Euro recuperates, US Monetary Policy decision expected tonight at 20h15 CET.

[RTFX-Trading]

   
The Euro recuperates, US Monetary Policy decision expected tonight at 20h15 CET.

What’s new?

US: Consumer confidence index increased in April
US: Price index of houses Standard & Poors / Case Shiller down.
US: Richmond Fed manufacturing index increased in March.
France: Index of consumer confidence unchanged in April.
Swine flu: the number of cases affected by flu is increasing.

Today:
10h00 Euro Zone: M3 Money Supply for March, exp 5.7%, previous 5.9%.
11h00 Euro Zone: Consumer Sentiment index for April, exp -33.0, previous -34.0
11h30 Switzerland: KOF Indicator for April, exp -1.9, previous -1.79.
14h30 US: GDP Q1, exp -5.0%, previous -6,3%.
14h30 US: GDP Deflator Q1, exp 0.8%, previous 0.6%.
16h00 Euro Zone: Speech by ECB member Axel Weber
20h15 US: Fed Monetary Policy decision, exp status quo.

Overnight Rates & Indices:
EURUSD:  1.3215 – 1.3120.
USDCHF:  1.1447 – 1.1397.
GBPUSD:  1.4730 – 1.4609.
EURCHF: 1.5064 – 1.5017.
USDJPY:  97.05 – 96.38.
DowJones: 8'017 -0.31%.
NASDAQ:  1’362 -0.,59%.
S&P 500: 855 -0.27%.
Nikkei:  8'697 -0.12%.
Crude Oil: $49.30
Gold: $893.70

Comments:
The market had sold the "carry trades" when the first cases of swine flu were discovered. Today, concerns about the swine flu spreading and becoming the first pandemic in the last forty years have been digested by the markets. The market is again focusing on the financial and economic activity itself.

Investors realized that the "stress test" advance step publication date of May 4th is fast approaching which led them to reduce their U.S. dollar long positions. A new case of fraud was reported in the United States, the fund manager Arthur Nadel was detained in connection with fraud of $360 million.

The day’s main event is the monetary policy meeting of the American Federal Reserve. They started their 2 day meeting yesterday evening and is expected to announce this evening at 20:15 the status quo. A press release will be issued to assess the timid signs of economic stabilization and the impact of recent decisions taken by the FED. To date, the Fed has already reduced its rate to a level close to zero and flooded the financial markets with dollars to combat the recession.

Good Day
Nicolas Longchamp
RTFX Ltd
Head Office

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