MORNING BRIEFING: Euro drops to all-time low versus Swiss franc; Focus now on SNB.

[RTFX-Trading]

MORNING BRIEFING: Euro drops to all-time low versus Swiss franc; Focus now on SNB.

[B][I][U]What’s new:[/U][/I][/B]
Forex: Euro slides to all-time low vs. Swiss franc.
Euro zone: EU must decide on help to Greece this week, Rehn.
Euro zone: Germany signals support for aid to Greece.
Canada: Finance Minister Flaherty expects G20 to discuss currency issues this year.
United States: Fed in no hurry to raise interest rates, Yellen.
United States: Fed’s Yellen open to Fed vice chairman job.
Fitch: Doesn’t expect EU aid to Greece.

[B][I][U]Today:[/U][/I][/B]
[IMG]http://www.rtfx.com/images/news/CAL240310.gif[/IMG]

[B][I][U]Overnight Rates and Indices: [/U][/I][/B]
EURUSD: 1.3500 – 1.3365.
USDCHF: 1.0683 – 1.0559.
GBPUSD: 1.5040 – 1.4957.
EURJPY: 122.26 – 121.43.
USDJPY: 91.07 – 90.35.
DowJones: 10’889 +0.95%
NASDAQ: 2’415 +0.83%
S&P 500: 1’174 +0.72%
Nikkei: 10’815 +0.38%.
Shanghai: 3’057 +0.12%,
Gold: $1’099
Crude Oil: $81.22

[B][I][U]Comments: [/U][/I][/B]

The Euro dropped to an all-time low against the Swiss franc on Wednesday. The attention has now turned on the Swiss National Bank, for indications on how much more it will take before intervening. The Swiss central bank has been intervening in the Forex markets over the past year as part of its efforts to protect the Swiss economy. Traders and analysts believe the SNB will continue to intervene and this may happen really soon. As the markets clearly wants action, as words are no longer doing the job.

The Euro slipped to 1.4232 against the franc earlier in Asian trading. It has so far lost 4.25% in 2010. Many market participants are expecting the SNB to intervene should we see an attack below 1.42 today. Against the US Dollar, the Euro fell to 1.3406, the lowest since May 2009, while it also fell to an all-time low versus the Australian Dollar at 1.4630.

The fall overnight in the Euro, came after concerns around Greece’s fiscal problems returned, despite Germany showing support, for the first time, to financial aid package for Greece. However, Berlin’s ‘change of heart’ did not come without any conditions, as Merkel set tough terms for any EU help for Athens.

Germany issued its conditions, saying that it may accept European financial aid as a last resort, but only if IMF is involved and euro-zone partners accept tougher budget discipline rules. However, it appears that France is against any involvement by the IMF and would to prefer to solve the issue inside the Euro family. While ECB President Trichet and Eurogroup chairman Juncker said involving the IMF would send a damaging message that the Euro zone is incapable of solving its own problems.

Good Day.

Emman Xuereb
Trading Desk
RTFX Ltd
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