Friday, November 12, 2010

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Irish Bank Borrowings From ECB Jump To €130 Billion

Posted: 12 Nov 2010 06:53 AM PST

On the wires: Irish Bank Borrowings From ECB Jump To €130 Billion, Or €100,000 For Every bp In Anglo Irish Sub CDS. According to the ECB, borrowings by Irish-based lenders' from the European Central Bank rose to €130 billion as of Oct. 29, up almost €10 billion from €121.1 billion at the end of September. Adjusted for size, this is roughly equivalent to US banks borrowing a few hundred trillion from the Fed, give or take a few trillion. “Pass thru” institutions include both international and domestic banks in Ireland.

In other words, the ECB continues to buy the bonds issued by Ireland, to provide the funds to Irish banks so they can buy their own bonds, and when all this fails, the ECB can step in and provide money to the government directly. Elsewhere, the CDS of Anglo Irish bank blew out by 20% yesterday, and have surged by over 10,000 bps since the end of October to nearly 13,000. Luckily, the end game is known: Ireland will be bailed out by the ECB, the country will become another Greece, lying each and every day about its deficit and economic recovery, until yet another country gets mauled. At some point the Fed/ECB/IMF’s rescue ploy will fail. Then, it will be best to be far away.

Forex Morning Report- Nov 12

Posted: 12 Nov 2010 06:30 AM PST

Forex Morning Report- Nov 12

Eurozone Industrial Production & Flash GDP

Posted: 12 Nov 2010 02:04 AM PST

EZ Industrial Production came in at -0.9%, weaker than the 0.4% expected.

Flash GDP q/q came in at 0.4%, weaker than the 0.5% expected.

No real market effect upon release of data as Eur/Usd continues to trade either side of 1.3630.

German Preliminary GDP

Posted: 11 Nov 2010 11:20 PM PST

German Preliminary GDP q/q came in at 0.7%, weaker than the 0.8% expected and prior reading of 2.3%.

Eur/Usd took a hit on heels of release with the pair trading down to 1.3585.

11-12 Economic Calendar

Posted: 11 Nov 2010 07:50 PM PST

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Lockhart on the wires..

Posted: 11 Nov 2010 03:58 PM PST

Speaking at an employment conference in Atlanta, the Fed’s Lockhart made the following comments:

  • Government should “bring clarity” on regulation.
  • Sees “slow slog” for U.S economy.
  • Most firms see slow, uneven improvement in the economy.
  • Employers see uncertainty on taxes and regulation.

FXDD Webinar Rebroadcast Thursday Nov 11 2010

Posted: 11 Nov 2010 02:52 PM PST

FXDD Webinar Rebroadcast Thursday Nov 11 2010 - Click here to watch

Forex Midday Report - Nov 11

Posted: 11 Nov 2010 09:15 AM PST

Forex Midday Report - Nov 11

Forex Quick: AUD/USD testing session lows

Posted: 11 Nov 2010 08:28 AM PST

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The AUD/USD is making a second test of the 0.9975 level as seen on the 1 hour chart. If the break fails, the pair may react and push higher to the 200 MA (green line) at 1.0046. If the break is successful, traders may see a test of the 98.93 level which was the near term low made on November 3rd 2010.

ECB’s Stark on the Wires

Posted: 11 Nov 2010 08:27 AM PST

Says:

  • Global economic outlook remains uncertain
  • Higher oil, commodity prices may damp spending
  • ECB doesn’t see medium0term inflation pressures
  • ECB sees ample global liquidity
  • ECB will counter any flation pressures early
  • Euro area suffering from structural divergences
  • ECB already in exit mode, will proceed with withdrawal
  • ECB exit will proceed as markets normalize
  • Measures to be kept only as long as ‘absolutely needed’
  • Government bond purchase plan is ‘temporary’
  • Government bond purchase plan is not quantitative easing
  • Current ECB stance is accommodative
  • ECB rates are still appropriate for now
  • Sees risk that too-loose policy will fuel inflation
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