Forex Market Updates & Commentary

Wholesale inventories rise 1.0%
ECB Wellink says upside inflation risk remains
US Wholesale Inventories due at 10AM
The NY Morning Forex Commentary is available for viewing
Portugal on the Wires
GBPUSD remains above support despite better Initial Claims
Good number for Initial Claims
Canada New House Price Index Lower
US Jobless Claims & Continuing Claims Come in Stronger
Gold tests 100 hour MA support
Bobbys Corner-Open Market-Feb.10.2011
ECB’S Weber on the Wires
The NY Opening Forex Commentary is available for viewing
US Jobless Claims & Continuing Claims Data due at 8:30AM
Canada New Housing Price Index Data Due at 8:30AM

Posted: 10 Feb 2011 07:03 AM PST

This a greater than expectations of 0.7% and will likely increase 4Q GDP. The 4Q GDP came in at 3.2% for the initial read, but it does not include all known economic data. Inventories were a drain for GDP. Lower inventories = lower GDP. As the inventories are replenished, GDP rises. This report will therefore likely lead to a revision higher - all things equal.

ECB Wellink says upside inflation risk remains

Posted: 10 Feb 2011 06:33 AM PST

However, he also comments that forecast for inflation to ease remains valid. He continues by saying ECB would act swiftly if data warranted it and that expanding EFSF (European Financial Stability Facility) mandate would help ECB. The comments were made in a Market News interview.

US Wholesale Inventories due at 10AM

Posted: 10 Feb 2011 06:16 AM PST

The NY Morning Forex Commentary is available for viewing

Posted: 10 Feb 2011 06:05 AM PST

The better than expected Initial Claims have led to an increase in the US dollar. GBPUSD has good support at the 1.6015 area and seems to find buyers. EURUSD has broken through support at 1.3611 but found buyers below. USDCHF moves closer to the 100 day MA target at 0.9688. This and more in the morning forex commentary.

Portugal on the Wires

Posted: 10 Feb 2011 06:05 AM PST

Portugal government says rise in yields reflect speculative attack on euro
Portugal government says first indications on there budget are that revenues are very positive

GBPUSD remains above support despite better Initial Claims

Posted: 10 Feb 2011 05:44 AM PST

Good number for Initial Claims

Posted: 10 Feb 2011 05:37 AM PST

383K vs 410K expectations. Lowest level since July 2008. The Labor Department does say that the claims are still unwinding previous effects of bad weather. So it might be another week or so before we get a true measure. Nevertheless, the trend is back in the right direction, and is more in line with the Unemployment rate decline that has seen the Unemployment rate fall from 9.8% to 9.0% in two calendar months.

States with the largest declines:
North Carolina had 11,541 fewer layoffs
Georgia had 5,607 fewer layoffs
Alabama 4,128 fewer layoffs
and NJ had 3,037 fewer layoffs

The dollar is moving higher on the news

Canada New House Price Index Lower

Posted: 10 Feb 2011 05:36 AM PST

Canada New House Price Index: Survey: 0.2% Actual: 0.1% Prior: 0.3%

DEC 2010
Total MoM%: 0.1%
House Only: -0.1%
Land Only: 0.2%

Total YoY%: 2.1%
House Only: 2.4%
Land Only: 0.7%

Index Level: 104.0
House Only: 103.7
Land Only: 103.9

US Jobless Claims & Continuing Claims Come in Stronger

Posted: 10 Feb 2011 05:34 AM PST

Number of people applying for U.S. unemployment drops to lowest level in almost 3 years.

Gold tests 100 hour MA support

Posted: 10 Feb 2011 05:29 AM PST

Bobbys Corner-Open Market-Feb.10.2011

Posted: 10 Feb 2011 05:10 AM PST

Good Morning:

As expected the Bank of England left interest rate s along with their QE program unchanged.
Portuguese bond yields rose-and the ECB was aggressively buying them up. The spread between Portuguese and German 10 year government bonds has widened again-now at 420 bps. This is still not as wide as the spreads got when Greece was in the early stages of their debt crisis.

With global equity markets mostly lower-the greenback rose as demand for the safety of the US currency was the main event in the FX markets overnight.

Asian equity markets were mixed, and Europe’s equity markets are lower at this time. US Futures are also looking at a lower opening this morning.

Oil:$86.43 Gold:$1358.20

TIME		PERIOD	FOR	EST.
7:45A.M.	BK. OF ENGLAND RATE DECISION
8:30A.M.	INITIAL JOBLESS CLAIMS	5-Feb	410K	415K
8:30A.M.	CONTINUING CLAIMS	29-Jan	3900K	3925K
10:00A.M.	WHOLESALE INVENTORIES	DEC.	0.80%	-0.2%
2:00P.M.	MONTHLY BUDGET STATEMENT	JAN.	-$60.0B	-$42.6B