todays update from my money traders
Swiss stocks advanced for a third day as gains at some companies offset losses at others. The rate London-based banks say they can borrow at in Swiss francs for three months, the libor, was unchanged at 0.005 percent for a second day. The franc, seen as a haven during global turmoil, surged to a record high of 1.03 against the euro last month as European governments struggled to contain the region’s debt crisis. SNB set the franc’s ceiling saying it would use “unlimited” quantities of cash to cap the increase. The franc fell by a record after the SNB announcement and traded yesterday at about 1.208 francs to the euro. The U.S. dollar is up against the Swiss franc, trading close to a three-and-a-half month high.
Expect a downward pressure against the Franc.
Mid Market Overnight Range: .8577 - .8652
U.S. stock futures were little changed before President Barack Obama and Federal Reserve Chairman Ben S. Bernanke speak on the economy. The U.S. trade deficit probably shrank in July as exports increased for the first time in three months, some economists are saying; a gap of $51 billion is projected. The U.S. economy is meant to grow 1.1 percent in the third quarter and 0.4 percent in the fourth, instead of the significantly higher figures predicted in May. The dollar climbed versus many of its major peers today. Obama will address Congress today on a $300 billion plan that includes tax cuts, infrastructure spending and direct aid to state and local governments. Bernanke will discuss the U.S. economic outlook.
Expect an upward pressure against the Greenback.
Euro
European stocks tumbled and snapped their four-day rally after data showed U.S. employment growth ground to a halt in August, rekindling fears that the world's largest economy is slipping into recession. German government bonds rose ahead of a news conference at which the ECB is expected to indicate a halt to the interest-rate rise cycle to help boost the struggling economy. The ECB left its main refinancing rate on hold at 1.5 percent after raising it twice in the last five months. Greek two-year note yields climbed to a record for a fifth day. The euro fell as investors struck a cautious tone with ECB policymakers seen likely to change tack and flag a pause in the recent monetary tightening cycle.
Expect a downward pressure against the Euro.
Canadian Dollar
Gold gained after a two- day slump attracted physical purchases and spurred investors to buy as a protection of wealth. Crude futures declined as Libyan officials discussed prospects for resuming production. The Bank of Canada kept its main interest rate unchanged for an eighth meeting and said there is a “diminished” need for an increase as Europe’s fiscal crisis and a slow U.S. rebound hobble the global recovery. Canadian bonds dropped, pushing the yield on the 10-year note up three points to 2.27 percent. Canada’s dollar gained the most in three weeks after the announcement. Canadian equities gained on speculation President Obama’s plan to pump $300 billion into the economy will bolster growth.
Expect an upward pressure against the Loonie.
Mid Market Overnight Range: .9826 - .9865
