Renewed risk appetite, Dollar is falling, “Carry Trades” on the rise.

[RTFX-Trading]

Renewed risk appetite, Dollar is falling, “Carry Trades” on the rise.

What’s New?

Chrylser: New York Times reports, Chrysler should seek Chapter 11 protection today.
Switzerland: Federal Office of Public Health confirms first case of swine flu.
United States: FED estimates that the contraction of the U.S. economy is in a deceleration phase.
United States: FED keeping interest rates very low for an extended period.
WHO: Raises flu threat level to 5.
United States: increase in consumer confidence.
United States: Obama declares "everything is being done to clean the debris of the crisis".

Today:

08h45 CET: FR Mar PPI M/M, exp -0.30%, previous -0.60%
10h00 CET: DE Apr Unemployment Rate, exp  8.30%, previous 8.10%
11h00 CET: Euro Zone Apr HICP flash Y/Y, exp 0.60%, previous 0.60%
11h00 CET: Euro Zone Mar Unemployment, exp 8.70%, previous 8.50%
14h30 CET: US Mar Personal Income, exp -0.20%, previous -0.20%
14h30 CET: US Weekly Jobless Claims, exp 640,000, previous 640,000
14h30 CET: US Personal Spending, exp -0.10%, previous 0.20%
15h00 CET: US Apr NAPM-NY, previous 366.5
15H45 CET: US Apr Chicago PMI, exp 35.0, previous 31.4

Overnight Rates & Indices

EURUSD:  1.3338 – 1-3246.
USDCHF:  1.1375 – 1.1303.
GBPUSD:  1.4855 – 1.4744.
EURCHF: 1.5086 – 1-5054.
USDJPY:  97.85 – 97.15.
DowJones: 8'186 +2.11%.
NASDAQ:  1'382 +2.28%.
S&P 500: 874 +2.16%.
Nikkei:  8'854 +4.11%.
Crude Oil: $51.46% +0.96%.
Gold : $894 -0.40%.

Comments:

The Tokyo Stock Exchange (Nikkei) increase sharply more than 4%, the latest efforts of the Department of Treasury to rescue Chrysler have failed. The New York Times reported, there is little doubt that Chrysler will file for bankruptcy and seek protection under Chapter 11 today.
   
Recent indicators and statements from the U.S. Federal Reserve that the U.S. economy has passed the worst of the recession have driven U.S. stock markets, bringing in its wake a fall in the dollar and a sharp rise in "carry trades". The EURJPY is close to 130, the GBPJPY is 144, the AUDJPY to 70.50 and NZDJPY 55.
  
The dollar and the yen, traditionally sought in times of crisis, have been neglected because of renewed appetite for risk. These two currencies had risen sharply, following the concerns caused by fears of a pandemic influenza virus. Currencies to high rate of return, as the Australian dollar and New Zealand dollar have each gained more than 3% against the yen.

Good Day

Nicolas Longchamp
RTFX Ltd
Head Office
Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 27 78 01 35
Fax: +356 21 41 24 58
Web: www.rtfx.com

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