Forex Market Updates & Commentary

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• Forex QUICK:GBPUSD bounces higher in NY trade
• Bank Of Canada Intrest Rate Raised
• Housing Starts still weak. Permits better but low. Market neutral
• Housing Starts and Building Permits
• Bobbys Corner-Open Market-July.20.2010
• The NY Opening Forex Commentary is available for viewing
• US Housing Starts & Building Permits at 8:30AM
• UK CBI Industrial Order Expectations
• Nowotny on the wires….
• UK Mortgage Approvals/ Public Sector Borrowing
• Franc can’t hold on to gains
• Swiss Trade Balance
• German PPI m/m
• 7-20 Economic Calendar
• RBA Govenor Stevens Speaks

Forex QUICK:GBPUSD bounces higher in NY trade Posted: 20 Jul 2010 07:00 AM PDT

Bank Of Canada Intrest Rate Raised Posted: 20 Jul 2010 06:04 AM PDT - The Bank of Canada Interest has been raised to .75% - Bank of Canada reiterates concern over uneven global economy.

Housing Starts still weak. Permits better but low. Market neutral Posted: 20 Jul 2010 05:38 AM PDT

Housing Starts and Building Permits Posted: 20 Jul 2010 05:32 AM PDT Housing Starts:    Survey: 577K    Actual: 549K    Prior: 593K    Revised: 578K Housing Starts (MoM)%:    Survey: -2.7%    Actual: -5.0%    Prior: -10.0%    Revised: -14.9%  Building Permits:    Survey: 575K    Actual: 586K    Prior: 574K    Building Permits (MoM)%:    Survey: 0.2%    Actual: 2.1%    Prior: -5.9%

Bobbys Corner-Open Market-July.20.2010 Posted: 20 Jul 2010 05:14 AM PDT Good Morning: The Eur/USD rose to a high of 1.3028 during early European trading as the markets speculate that the Eu’s stress test of the regions banks will be positive.  The results are expected to be released this Friday.  Another positive result for the EU was that the Spanish T Bill auction this morning sold off the entire 6 billion euros that was allocated for the 6 month instrument-and 12 month bills had a lower yield than last month.  Is this a sign that the Southern European credit markets are regaining their balance?  Today’s data on housing starts is expected to fall.  This would surly be a sign that the US economic recovery is losing traction. The Tokyo stack market lost ground as they reopened after their Monday holiday.  European equity markets are lower-and US Futures are lower-indicating a negative opening at the bell. Oil:$76.20                                Gold:$1177.90 TIME FOR  EST PRIOR 8:30A.M. HOUSING STARTS JUNE 577K 593K 8:30A.M. HOUSING STARTS MoM JUNE -2.70% -10.00% 8:30A.M. BUILDING PERMITS  JUNE 575K 574K 8:30A.M. BUILDING PERMITS MoM JUNE 0.20% -5.90% HAVE A GREAT DAY & GOOD LUCK

The NY Opening Forex Commentary is available for viewing Posted: 20 Jul 2010 04:59 AM PDT

US Housing Starts & Building Permits at 8:30AM Posted: 20 Jul 2010 04:55 AM PDT

UK CBI Industrial Order Expectations Posted: 20 Jul 2010 03:04 AM PDT The UK CBI manufacturing order book balance came in at -16 for July versus -23 in June; this was the highest reading since August of 2008. Also, manufacturing output expectations balance was 6 versus 15. Quarterly business situation balance was 10 in July, lower than June’s reading of 24; the lowest since October 2009.

Nowotny on the wires…. Posted: 20 Jul 2010 02:48 AM PDT The ECB’s Nowotny made these comments: Bond markets are functioning at the moment. It makes sense to keep bond buying option in place, but not active at the moment. No intention to change 3 month tenders. Reduction in liquidity has not led to any imbalances. ECB not concerned about the rise in money market rates. Do not see double dip scenario in the euro zone. No direct link between stress test results and option of extending ECB liquidity support. Where banks’ capital is not adequate, there has to be government measures in place. Happy that stress tests are strict enough; doubts unfounded.

UK Mortgage Approvals/ Public Sector Borrowing Posted: 20 Jul 2010 01:33 AM PDT The pound fell versus the USD and EUR after the release of worse than expected public finance data, the details are as follows: Prelim Mortgage Approvals - Survey: 52K   Actual: 48K   Prior: 50K Public Sector Borrowing - Survey: 13.2B   Actual: 14.5B   Prior: 16.0B Prelim M4 Money Supply (m/m) - Survey: -0.1%   Actual: 0.0%   Prior: 0.0%

Franc can’t hold on to gains Posted: 19 Jul 2010 11:44 PM PDT Following the trade balance release, the USD/CHF pair traded almost 20 pips lower but could not sustain the move. A close below the 61.8% line may have been a bullish signal that the pair would continue lower, but the dollar quickly rebounded. Now trading back in the area of the 50.0% retracement on the move from the low to the high on July 19th, the pair may find some support from both the 50.0% line and 100 hour moving average. If it holds, the next topside target is the 38.2% line at 1.0515 and further is the 23.6% at 1.0532.

Swiss Trade Balance Posted: 19 Jul 2010 11:18 PM PDT The franc traded higher after June’s trade balance came in at 1.77B; better than the forecast of 1.05B and prior showing of 0.82B. The CHF continues to trade at session lows against the dollar.

German PPI m/m Posted: 19 Jul 2010 11:02 PM PDT Germany’s June PPI was 0.6% (m/m) and 1.7% year over year versus 0.3% and 0.9% in May. The euro traded slightly higher prior to the release, but had a limited reaction following the reading. The euro is currently trading off sessions highs against the USD.

7-20 Economic Calendar Posted: 19 Jul 2010 09:00 PM PDT

RBA Govenor Stevens Speaks Posted: 19 Jul 2010 08:49 PM PDT The RBA’s Stevens made these comments while speaking in Sydney: Australia has got trend growth. Domestic information is consistent with trend growth. General medium term picture is fairly positive. The board will do its job on policy no matter the election. All information will be taken into account on policy decisions, not just CPI. Looks at many measures of underlying inflation. Seeing more cautious borrowing by households; household debt has been manageable.

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