>> Swiss franc surpasses Australian dollar struggles Post-RBA

Fundamental headlines

-Links to prove only the winners for the first time since 2008 - Bloomberg

-Fed said to criticize banks on risk of Stress Test models - Bloomberg

-Syria Violence kills 23 despite the truce of the Nations United-follow-up - Reuters

-BofA to cut ranks of the elite - WSJ

-United States considers that the Notes which float - WSJ

Summary of European Session

The last 24 hours have been rather calm, almost too calm given recent volatility surrounding the key data prints outside Europe and the United States. However, given that the Asian and European markets are mostly closed for the holidays this week, liquidity was thin, so beaches have been smaller. This said, surprise 50-points rate cut earlier today Australia Reserve Bank fuelled huge instability especially the Australian Dollar, which was less powerful major the day.

In fact, a look at credit Switzerland Overnight Index Swaps, forward of the decision of the RBA rate, market, participants were only prices in a 39.0 per cent probability of a rate of 50 - bps cut; After the meeting, the players in the market were price in a 123.0 per cent probability of a decline in 50 - bps (suggesting a chance of 23.0%, of a section of 75 - bps). The takeaway is clear: traders were very surprised by this move. The RBA becomes more in more moderate pressure prices lower and slower growth of the important trading partners, mainly China, leading me to believe that in the panic, the Australian Dollar will be among the weak majors, moving forward.

It is also interesting to note that today ' today marks the beginning of may, there is some seasonal trends to take into account when considering the performance of the market in the coming days. Using the & S P 500 as a proxy for the broader equity markets, since 1950, may has averaged a gain of 0.24%. Recently, in May 2010 and 2011, the S & P 500 lost 8.2% and 1.4% respectively. It goes without saying that may 2012 new performance "sell in May and go away" as it has each of the past few years.

Take a look at credit, it is to note that more Asian and European markets have been or are closed today, taking into account regional holidays, therefore the flow were lighter and thus prices are not "real" sense of participants reflects wider of the market. With the help of 2 years the debt as a proxy for the financial stability of the Euro area, we note that the PIIGS are generally lower, with the Ireland, the Italy and worst performing Spain on the short end. The Portuguese 2-year note was remarkably strong in thin trading, whose performance has dropped from 38, 7 - bps to 6.705%.

AUDUSD 5 min chart: May 1, 2012

Graphing with Marketscope - prepared by Christopher Vecchio

Overall, the Swiss Franc was the best execution main currency against the US Dollar, appreciating by 0.27%. Following the RBA decision, the Australian Dollar was the main currency less powerful, abandonment of 0.92% until Tuesday. Overall, given the holiday season in Asia and Europe, the other majors are relatively unchanged from the world reserve currency.

24-Hour price Action

Key levels: 13: 20 GMT

 

So far, on Tuesday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is higher, trade at 9844.33 at the time when this report was written, after opening at 9827.29. The index traded mostly higher, with the top at 9864.40 and at 9827.29.