Forex Market Updates & Commentary

Mexico Consumer Prices Rise
EURUSD corrects to key support at 1.4238
Bobbys Corner-Open Market-April.7.2011
ECB’s President Trichet Speaking in Frankfurt
US Jobless Claims Improve Slightly
Canada Building Permits Rise Radically
US Jobless Claims Have 385K Forecast
Canada Building Permits Expecting Strong Figures
ECB Raises Interest Rate to 1.25% from 1%
Euro-zone rate decision in 15 minutes…
Bank of England leaves interest rate unchanged at 0.50% and asset purchases 200B
U.K interest rate decision at 7 am
German Industrial Production rises 1.6% from prior month
German Industrial Production @ 6 am
German economic institute expects ECB to raise rates in the second quarter.

Posted: 07 Apr 2011 07:08 AM PDT

Mexico march core consumer prices rose 0.30% from a month ago. Mexico march consumer prices rose 0.19 from a month ago. In the past year Mexico consumer prices rise 3.04%.

EURUSD corrects to key support at 1.4238

Posted: 07 Apr 2011 06:48 AM PDT

The EURUSD since the ECB rate decision and comments from atch 1.4281 anilling to go down the road.

The move lower, however, has found support against the 100 hour MA and the 38.2% retracement of the move up from the April 1st low to the high reached yesterday at the 1.4348 level

On the daily chart, (see chart below) the high price from November 2010 came in at the the 1.4281 level. The price is back above that level currently and if it can remain above this level today, the bias remains bullish. The bears/sellers inability to sell below the 100 hour MA and the move back above this old high keep the bears at bay and suggest that theyhave not fully proved themselves worthy of further downside momentum.

Watch 1.4281 and the 100 hour MA todayas key levels on the downside.

On the topside get through the 200 bar MA on the 5 minute chart and stay above that level and the 1.4281 level and moves higher can be expected.

Bobbys Corner-Open Market-April.7.2011

Posted: 07 Apr 2011 05:45 AM PDT

Good Morning:

The ECB raised their benchmark interest rate by 25 basis points to 1.25%. This was wildly expected in the marketplace. The Euro has since weakened. The ECB raised rates as the fear of inflation in the region was stronger that the sovereign debt issues plaguing the EU. With inflation raising and the German economy booming-the markets expect the ECB to boost rates again before year end. This is the first interest rate hike since 2008.
Portugal is getting ready to sort out a bailout package. Estimates are that this bailout may reach as high as 75 billion euros ($107 billion), as Portugal becomes the 3rd nation in the EU to seek a bailout. Unnamed officials stated that they do not anticipate any other EU sovereigns to need financial assistance-but I think that we have heard this before.
In other news: The Bank of England left interest rate and their QE program in place. The Bank of Japan offered a lending program to assist companies affected by the earthquake-and commented that this may decrease growth in Japan for months (I think years) to come.

Asian equity markets were mixed-and European markets along with US Futures are higher at this time.

Oil jumped over $109/barrel in overnight trading.

Oil:$108.91 Gold:$1459.70

TIME		FOR	EST.	PRIOR
7:00A.M.	BK. OF ENGLAND RATE DECISION
7:45A.M.	ECB RATE DECISION		1.25%	1.00%
8:30A.M.	ECB PRESS CONFERENCE
8:30A.M.	INITIAL JOBLESS CLAIMS	2-Apr	385K	388K
8:30A.M.	CONTINUING CLAIMS	26-Mar	3700K	3714K
3:00P.M.	CONSUMER CREDIT	FEB.	$4.600B	$5.014B