MORNING BRIEFING: Spasms of relief for the EURO

[RTFX-Trading]

MORNING BRIEFING: Spasms of relief for the EURO

[B][I][U]What’s new:[/U][/I][/B]

United states: US GDP for Q1 forecast at 3.4%
Euro Zone: Greece reportedly agrees to an austerity package in return for aid
British Pound: With Elections settled by next week, some uncertainty will be lifted
Brazil: Raises rates to control inflation


[B][I][U]Today:[/U][/I][/B]
[IMG]http://www.rtfx.com/images/news/CAL300410.gif[/IMG]


[B][I][U]Overnight Rates and Indices: [/U][/I][/B]
EURUSD: 1.3306 – 1.3223.
USDCHF: 1.0846 – 1.0785.
GBPUSD: 1.5390 – 1.5316.
EURJPY: 125.29 – 124.31.
USDJPY: 94.20 – 93.89.
DowJones: 11’167.32 +1.11%
NASDAQ: 2’511.92 +1.63%
S&P 500: 1’206.78 +1.29%
Nikkei: 11’057.40 +1.21%.
Shanghai: 2’870.611 +0.08%,
Gold: $1’172.90
Crude Oil: $85.84

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

Euro found some support early Friday. With markets heavily short on the Euro, any hopes of a quick conclusion for Greek aid, is providing spasms of relief for the EURO. RTFX trend still remains bearish for the EURUSD pair, and according to RTFX Tradertip while the pair trades below 1.3279 it is more likely to fall further towards 1.3232/1.3209 levels.

With markets moving on any news or rumours, the pair stands to lack decisive direction and will most likely trade within a particular band. Going short makes more fundamental sense.

The British pound advanced against the single currency, markets are looking at what will be the probable norm after the elections - with a long weekend ahead (as Monday is a UK bank Holiday) and with the uncertainty (linked to the general election next week) out of the way, whatever the result government should be back to business, and tackling the ballooning debt load.

Today’s economic calendar is a busy one. The most significant are Eurozone data releases including unemployment rate & HICP, whilst in the US the GDP for Q1 is expected.


Good Day.

Rudolf Muscat

Trading desk

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