The US Dollar benefits from its safe haven status as Euro suffers

[RTFX-Trading]

The US Dollar benefits from its safe haven status as Euro suffers

What’s new?
Wall Street: Sharp decline after disappointing Retail Sales figures.
Euro zone: Larger than expected fall in industrial production.
United States: Retail Sales lower in April

Today:
09h15 Switzerland: Producer & Import Prices Index M/M (APR), exp 0.40%, previous -0.50%.
10h00 Euro zone: ECB Monthly Report (MAY)
14h30 US: Jobless Claims, exp 609'000, previous 601'000.
14h30 US: Producer Price Index M/M (APR), exp 0.20%, previous -1.20%.
14h30 US: Core Producer Price Index M/M (APR), exp 0.10%, previous 0.00%.

Overnight Rates & Indices:
EURUSD: 1.3602 – 1.3525.
USDCHF: 1.1120 – 1.1066.
GBPUSD: 1.5163 – 1.5098.
EURJPY: 120.97 – 128.86.
USDJPY: 95.73 – 95.13.
DowJones: 8'285 -2.18%.
NASDAQ: 1’664 -3.01%.
S&P 500: 883 -2.69%.
Nikkei: 9’087 -2.71%.
Gold: $924

Comments:

Disappointing US retail sales figures in April, larger than expected fall in industrial production in the euro area and the Bank of England’s downward revision of growth forecast, raised fears about the state of the global economy and dented hopes that the economy would soon pull out of recession.

The dollar edged up from a four-month low hit against its main rivals and after reaching a seven week low against the euro to $ 1.3722. The greenback regains its safe haven status. However, the dollar fell to an eight-week low against the yen at 95.16, following the liquidation of long cross/yen positions

However, this resurgence of the US dollar could be temporary; the fears that the United States needs to take measures to avoid loss of its Triple A rating, the refusal of the opposition party of Japan to buy US government bonds denominated in dollars and the statements of China that it may abandon the dollar. Perhaps we should enjoy the 1.3500-30 level to take positions on the rise in the medium term.

Good Day

Emman Xuereb
RTFX Ltd
Head Office

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