Forex Market Updates & Commentary

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• Philly Fed comes in weaker than expectations
• Rumor of no QE next week sends EURUSD down
• Forex Morning Report- Sept 16
• GBPUSD contained with support and resistance defined
• Philadelphia Fed Manufacturing Index expected to rise to unchanged
• EURUSD corrects off to intraday support off the better jobless claims data
• Bobbys Corner-Open Market-Sept.16.2010
• Intial Unemployment Claims come in a tocuh better
• US PPI due at 8:30
• US Initial Unemployment Claims expected to be 460K
• SNB dovish comments sends USDCHF soaring higher
• SNB leaves rate unchanged
• Euro stronger on promising Spanish bond auction
• UK Retail Sales
• Swiss Industrial Production

Philly Fed comes in weaker than expectations Posted: 16 Sep 2010 07:04 AM PDT …but higher than last months -7.7 decline. The component show the following: Prices Paid: 9.8 vs 11.8 last month Prices Received:-13.9 vs -12.5 last month New Orders:-8.1 vs -7.1 last month (Still negative!)Shipments: -7.1 vs -4.5 last month Unfilled Orders:-8.5 vs -7.1 last month Delivery Time:-4.1vs -11.0 last month Inventories:-16.7 vs -11.6 last month Number of Employees:1.8 vs -2.7 last month Average Workweek:-21.6 vs -17.1 last month

Rumor of no QE next week sends EURUSD down Posted: 16 Sep 2010 06:56 AM PDT There is a rumor circulating that may be contributing to the USD strength that the Fed will not be conducting additional Quantitative Easing (QE) next week. The markets typical reaction is additional QE equals weaker dollar. No more QE = stronger dollar. That is the initial reaction at least. What traders do need to realize is that the Fed is likely divided at the moment. So unless Bernanke is able to sway sentiment, it is likely to stay the course.

Forex Morning Report- Sept 16 Posted: 16 Sep 2010 06:43 AM PDT Forex Morning Report- Sept 16

GBPUSD contained with support and resistance defined Posted: 16 Sep 2010 06:40 AM PDT

Philadelphia Fed Manufacturing Index expected to rise to unchanged Posted: 16 Sep 2010 06:03 AM PDT

EURUSD corrects off to intraday support off the better jobless claims data Posted: 16 Sep 2010 05:47 AM PDT Watching the 1.3047 level for support.

Bobbys Corner-Open Market-Sept.16.2010 Posted: 16 Sep 2010 05:34 AM PDT Good Morning: The Euro saw gains across the board in overnight trading.  With  decent Spanish  bond auction results, strong buying of EUR/GBP cross on the heels of very poor UK retail sales,  buying of EUR/JPY as the BOJ is still buying USD/JPY, along with trade data from the Euro Zone which was much better than expected, all assisted in the Euro rally. The Swiss National Bank left rates steady-to  help keep any chance of an economic recovery on track. After the BOJ intervened in the FX markets yesterday-it appears that they are still in the markets-but there is no confirmation from the Japanese Government. World equity indexes were lower overnight, and US Futures are also pointing to a lower opening this morning. Oil:$75.10                                        Gold:$1278.20 TIME FOR EST. PRIOR      Act      8:30A.M. CONTINUING CLAIMS 4-Sep 4465K 4478K       450K 8:30A.M. CURRENT ACCOUNT BALANCE 2Q -$125.0B -$109.0B 9:00A.M. TOTAL NET TIC FLOWS JULY -$6.7B 9:00A.M. NET LONG TERM TIC FLOWS JULY $47.5B $44.4B 10:00A.M. PHILADELPHIA FED. SEPT. O.3 -7.7O HAVE A GREAT DAY & GOOD LUCK

Intial Unemployment Claims come in a tocuh better Posted: 16 Sep 2010 05:33 AM PDT 450 K for the currency week which is better than 460 Expectations.  PPI comes in at 0.4% MoM  Ex Food and energy +0.1%. YoY 3.1% headline but 1.3% ex food and energy The US Current account comes in a-123.3 B.

US PPI due at 8:30 Posted: 16 Sep 2010 05:30 AM PDT

US Initial Unemployment Claims expected to be 460K Posted: 16 Sep 2010 05:18 AM PDT

SNB dovish comments sends USDCHF soaring higher Posted: 16 Sep 2010 05:10 AM PDT

SNB leaves rate unchanged Posted: 16 Sep 2010 05:01 AM PDT Expects economy to expand 2% in 2010 Inflation at 0.7% vs 0.9% 2011 0.3% vs 1.0% Economy to show marked slowdown in 2nd half. SLower growth is as a result of strong SFR/weaker global growth Uncertainty on global economy SNB will take needed measures in case of deflation risk Cannot rule out temporary negative inflation in 2011 Comments are more dovish as far as inflation and economic expectations The USDCHF has surged higher (CHF weaker) on the dovish comments

Euro stronger on promising Spanish bond auction Posted: 16 Sep 2010 02:11 AM PDT Eur/Usd propelled through stops between 1.3035-50 to make a new high of 1.3077 on the heels of a very promising Spanish bond auction. Spain’s economic well being is being monitored closely by th EU explaining such a strong move to the upside.

UK Retail Sales Posted: 16 Sep 2010 01:32 AM PDT UK Reatil Sales for August came in at -0.5%, weaker than the 0.3% expected and prior reading of 1.1%. Gbp/Usd dropped 50 points to 1.5460 on the news.

Swiss Industrial Production Posted: 16 Sep 2010 12:29 AM PDT Swiss Industrial Production q/q came in at 5.7%, stronger than the 3.3% expected. Usd/Chf is off about 10 points to 1.0110, however Eur/Chf gained 20 points to 1.3040 upon release.

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