The euro is favored by investors, Ben Bernanke speech at 16:00 CET.

[RTFX-Trading]

The euro is favored by investors, Ben Bernanke speech at 16:00 CET.

What’s new ?:
United States: Pending home sales rose 3.2% in March
United States: Construction spending up 0.3% in March.
United States: Fed sees recovery in the U.S. during 2009-2010.
Switzerland, Hildebrand: Vice-Chairman of the SNB is taking the risk of deflation very seriously.
Stress Test: About a dozen banks tested to need more capital.
UBS: loss of nearly 2 billion Swiss francs in the first quarter

Today:
07h45 Switzerland: Q2 Consumer confidence, exp -28.0, previous -23.0
11h00 Euro zone: March PPI M/M, exp -0.50%, previous -0.50%
16h00 US: April ISM non-manufacturing composite, exp 42.0, previous 40.8.
16h00 US: FED president, Ben Bernanke, speaks about American economy.
16h30 US: Semi-annual ISM report

Overnight Rates & Indices:
EURUSD: 1.3438 – 1.3356.
USDCHF: 1.1302 – 1.1248.
GBPUSD: 1.5049 – 1.4982.
EURCHF: 1.5118 – 1.5072.
USDJPY: 98.98 – 98.62.
DowJones: 8’427 +2.61%.
NASDAQ: 1’764 +2.58%.
S&P 500: 907 +3.39%.
Nikkei: Closed.
Crude Oil: $54.03 -0.81%.
Gold: $904.

Comments:

Risk appetite continues to mount with the S & P 500 up 3.4% yesterday in the wake of the sharp rise in Asian stock markets Monday morning. The correlation between the current S & P and the EURUSD has resulted in a sharp rise in EURUSD at 1.3425. The encouraging housing data we had yesterday also contributed to the renewed appetite for investment. Pending homes sales rose for a second straight month in March, while construction spending edged higher, according to reports on Monday that suggested moderation in the long housing slump.

Today, the ISM services index for April and the speech from the Fed chairman, Ben Bernanke, at 16:00 CET are the two main points of attraction. The ECB, the "Stress Test" result and the U.S. jobs report are the next three crucial events later this week.

The New York Times reported this weekend, citing a senior government official, that the results of stress tests scheduled to be released May 7th include detailed information about banks, including projected losses on specific parts of their loan portfolios, such as residential mortgages, credit card loans and commercial loans. The government is ready to use the results of the "Stress Test" to clean up the financial system, and banks that need additional capital will be assisted with funds already approved by Congress.

Good Day

Nicolas Longchamp
RTFX Ltd
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