MORNING BRIEFING: Bernanke manages to reassure markets

[RTFX-Trading]

MORNING BRIEFING: Bernanke manages to reassure markets

[B][I][U]What’s new:[/U][/I][/B]
United States: Ben Bernanke’s comments reassure markets; risk appetite improves
Euro: Euro finds some support as risk appetite improves
Germany: Cabinet approves EUR80bln budget cuts, over 4 years
United Kingdom: Local Newspapers raising expectations for the upcoming June 22 budget


[B][I][U]Today:[/U][/I][/B]
[IMG]http://www.rtfx.com/images/news/CAL080610EN.gif[/IMG]


[B][I][U]Rates in Asia and Indices: [/U][/I][/B]
EURUSD: 1.1982 - 1.1912.
USDCHF: 1.1641 - 1.1595.
GBPUSD: 1.4528 - 1.4461.
EURJPY: 110.06 – 108.80.
USDJPY: 91.92 – 91.31.
DowJones: 9’816.49 -1.16%
NASDAQ: 2'173.90 -2.04%
S & P 500: 1'050.47 -1.35%
Nikkei: 9’537.94 +0.18%
Shanghai: 2’513.95 +0.09%
Gold: $ 1,241.80
Crude Oil: $ 72.09


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

Ben Bernanke’s reassurance to the markets, that US economic Growth was still intact, saw an increase in risk appetite this morning. Both USD and JPY lost some ground against major counterparts, while Euro and British Pound enjoyed some support.

Finance Ministers from the Euro Zone agreed to set up a safety net arrangement on Monday. From the Euro Zone German Chancellor Merkel and French President Sarkozy, rescheduled their 7th June meeting to June 14th where they are expected to coordinate further their efforts to curb the problems of Euro zone Debt. They plan to meet before the EU Summit scheduled 17th-18th June.

The German Cabinet agreed to EUR80bln in budget cuts over the coming four years, on the grounds that (as Chancellor Merkel said) “solid finances are the best form of crisis prevention”. Even Hungary promised cuts to meet budget targets.

EURUSD: According to RTFX Trader tip; to the upside resistance lies in the 1.1984/1.2045 region, beyond the 1.1980 resistance is seen bullish for the day – even though previous support (now a resistance) at 1.2150 will probably limit movement to the upside. Market trend according to RTFX Trend remains bearish however.


In the United Kingdom, the telegraph reports that Government will have to double the scale of the cuts it has already planned if it is citing Canada as an example to look up to because Canada had successfully cut its debt, and managed to maintain economic stability in the 1990s.


Good day,


Rudolf Muscat
Trading desk

RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel: +356 23 31 00 00
Fax: +356 21 41 24 58
Web: [url]www.rtfx.com[/url]
[URL="http://www.rtfx.com/static/rtfx_risk_disclaimer.html"]Risk Disclaimer[/URL]