Forex Market Updates & Commentary

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• US Wholesale Inventories Falls by 0.1%
• Forex Morning Report - May 11
• Forex Quick: USD/CAD Tight range may lead to breakout
• Bobbys Corner-Open Market-May.11.2010
• Wholesale Inventories Data at 10AM
• Aussie budget report points toward growth
• Moody’s may cut Greece’s credit ranking to junk
• UK Manufacturing/ Industrial Production
• FED’s Kohn makes comments…
• ECB’s Nowotny on the wires….
• Eur/Usd continues to retrace downward
• German Final CPI
• Swiss Consumer Climate
• Usd/Cad finds support; moving to upside
• 5-11 Economic Calendar

US Wholesale Inventories Falls by 0.1% Posted: 11 May 2010 07:02 AM PDT Wholesale Inventories fell to 0.4% vs 0.5% expectations. This number is only a touch lower. IBD/TIPP Economic Optimism  stays roughly the same at 48.7 from 48.4 in March. More than expectations.

Forex Morning Report - May 11 Posted: 11 May 2010 06:30 AM PDT Click here to view the embedded video.

Forex Quick: USD/CAD Tight range may lead to breakout Posted: 11 May 2010 05:59 AM PDT Forex Quick: USD/CAD Tight range may lead to breakout

Bobbys Corner-Open Market-May.11.2010 Posted: 11 May 2010 05:58 AM PDT Good Morning: The Euro gave up yesterday’s gains, as the marketplace absorbs the impact of the $1 trillion bailout, and concerns that this bailout package will hurt overall European growth.  Concerns that this bailout package is not a long term solution for the EU, also added to the decline in the Euro.  The bailout package does not alter the fact that Spain and Portugal will still have to undergo austerity measures. World equity market fell, and US Futures are pointing to a lower opening this morning. Gold is higher-and oil is lower this morning. Oil:$75.80                                       Gold:$1221.30 Today’s Data:   10:00A,M, WHOLESALE INVENTORIES MARCH 0.50% 0.60% 10:00A,M, IBD/TIPP ECONOMIC OPTIMISM MAY 48.4O 48.4O HAVE A GREAT DAY & GOOD LUCK

Wholesale Inventories Data at 10AM Posted: 11 May 2010 05:46 AM PDT

Aussie budget report points toward growth Posted: 11 May 2010 02:37 AM PDT Australia sees budget surplus by 2012-13, three years earlier than once thought. Money treasurer Wayne Swan raises 2010-11 GDP forecast to 3.25% from 2.75%. Aud gained slightly versus the Usd as the pair trades at .8985, up about 10 points.

Moody’s may cut Greece’s credit ranking to junk Posted: 11 May 2010 01:49 AM PDT The E.U.’s rescue package may be viewed as just a very large band-aid as highly regarded Moody’s Investor Services said it may cut Greece’s credit ranking to junk. The Euro fell accordingly against all counterparts with Eur/Usd off about 30 points to 1.2700.

UK Manufacturing/ Industrial Production Posted: 11 May 2010 01:33 AM PDT The GBP traded slightly higher after March industrial and manufacturing production came in better than expected: Manufacturing Prodcution (m/m) - Survey: 0.3%   Actual: 02.3%   Prior: 1.3% Industrial Production (m/m) - Survey: 0.3%   Actual: 2.0%   Prior: 1.0% Sterling is currently trading off session highs against all of the majors.

FED’s Kohn makes comments… Posted: 11 May 2010 12:14 AM PDT FED Vice Chairman Donald Kohn warned that economies around the world must further rebalance their inward and outward capital flows in order to avoid another crisis. Also, the U.S. economy will need to be driven less by consumption and housing and more by exports. The United States must find a way to get it’s deficit on a sustainable path. It was a mix of regulatory shortcomings and low interest rates which contributed to conditions that led to the financial crisis.

ECB’s Nowotny on the wires…. Posted: 10 May 2010 11:51 PM PDT Doesn’t see inflationary risks from bond buying measures. The main problem for the euro zone is weak demand and slow growth. EUR/USD rate always fluctuates historically-no reason for concern.

Eur/Usd continues to retrace downward Posted: 10 May 2010 11:42 PM PDT Since its run up to 1.3094 during yesterday’s session, Eur/Usd has been on a steady decline. A clean break below its 100 hour M/A  (1.2806) verifies the overall bearishness of the pair. I see light support at 1.2630-40 coinciding with prior hourly lows, with 1.2520-30 a good target for the pair to the downside. To the upside light resistance at 1.2740 (61.8% fibo), with 1.2800-10 acting as stronger resistance.

German Final CPI Posted: 10 May 2010 11:02 PM PDT Germany’s final CPI for April was -0.1%; in line with its survey and prior reading. The wholesale price index was better; 1.7% versus a 0.3% survey.

Swiss Consumer Climate Posted: 10 May 2010 10:58 PM PDT The market showed a limited reaction to the Swiss consumer climate which came in at 14 versus the forecast of 1 and prior reading of -7.

Usd/Cad finds support; moving to upside Posted: 10 May 2010 10:12 PM PDT After yesterday’s gap lower opening, Usd/Cad continued to look offered until reaching its 200 hour M/A at 1.0218. The pair made a low of 1.0210 and since has had a hard time breaking below. As the USD seems to be strengthening Usd/Cad seems to be ready for a stronger move to the upside. With that being said the first strong resistance lies at 1.0340-45 level whereboth the 100 hour M/A (1.0338) and 38.2% fibo (1.0342) sit.

5-11 Economic Calendar Posted: 10 May 2010 10:01 PM PDT

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