Trichet appreciates a strong US dollar, renewed optimism about US economy forecasts

What?s new:
Euro-zone: Consumer price index confirmed at 0.60%
United States: Lockhart expects that the contraction of the US economy weakened
United States: Requests for weekly unemployment benefits declined
United States: Activity index of the Fed of Philadelphia on the rise
United States: Reassuring results from JPMorgan Chase
Euro-zone: Trichet appreciates a strong US dollar

Today:
09h15 Switzerland: February Retail Sales, previous +1.20%.
11h00 Euro-zone: Trade Balance (euros), exp -4.9B, previous -5.5B.
16h00 United States: University of Michigan Confidence index, exp 58.5, previous 57.3.
18h30 United States: Fed President Bernanke speaks.

Asian Session ranges and indices:

EURUSD: 1.3197 ? 1.3066.
USDCHF: 1.1557 ? 1.1458.
GBPUSD: 1.4942 ? 1.4848.
EURCHF: 1.5141 - .
USDJPY: 99.14 ? 98.15.
DowJones: 8?125 +1.19%
NASDAQ: 1'353 +2.68%
S&P 500: 865 +1.55%
Nikkei: 8'879 +1.42%
Gold: $873
Crude Oil: $49.66 -0.64%


Comments:

The dollar is rising this morning following the declaration of the President of the European Central Bank Jean-Claude Trichet said that he appreciates a strong US dollar.

Wall Street has ended the session up Thursday in a renewed optimism after the results from JPMorgan Chase and future results of major U.S. companies. The S & P rose 1.55%, gold fell $ 20 to $ 875. Yields of Treasury rates are 10 years up to 2.85% from a low of 2.74% Wednesday. Data from the US also reassured investors, requests for weekly unemployment benefits were better than expected and the activity index from the Fed of Philadelphia rose from -35 in March to -24.4 in April. The statement from the President of the Dallas Fed Lockhart; expects that the contraction of the U.S. economy should weaken and that attempts for growth are expected for the 3rd quarter of 2009 reassuring the markets.


Today from the United States, the confidence index from the University of Michigan and the speech of Fed chairman, Ben Bernanke are the two points of focus.

In the euro area, the consumer prices index was confirmed to +0.60%, but economists expect inflation to near zero for the month of April. Views of inflation forecasts of various officials of the European Central Bank differ. However, it seems clear that the ECB will announce emergency measures to counter a possible deflation, Weber said yesterday.

On a global scale, the United States took a significant lead on the United Kingdom, Asia and the euro area, which should encourage increases in the Dollar. In the medium term, the dollar should appreciate against the pound sterling, the yen and the euro.


Good Day


Christian Briffa

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