Forex Market Updates & Commentary

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• IMF Blanchard says reasons to worry about world economy
• The NY Morning Forex Call for April 11th 2011
• Bobbys Corner-Open Market-April.11.2011
• The Week Ahead from FXDD
• Feds Dudley says important not to overreact to rising inflation
• ECB’s Honohan
• Italian Industrial Production
• French February Industrial Production rises 0.4% from prior month
• 4-11 Economic Calender
• George Soros Comments on Euro Hikes
• Japan’s Machine Orders

IMF Blanchard says reasons to worry about world economy Posted: 11 Apr 2011 07:31 AM PDT Health of Financial system still not good Substantial fiscal adjustments needed Fiscal adjustments especially for advanced states He acknowledges that the IMF has many instruments they can use

The NY Morning Forex Call for April 11th 2011 Posted: 11 Apr 2011 05:44 AM PDT

Bobbys Corner-Open Market-April.11.2011 Posted: 11 Apr 2011 05:27 AM PDT Good Morning: We start the week on a quiet note in the FX markets.  It was a fairly uneventful overnight session-with very little on the global calender-and nothing on North America’s calender today-the markets may be like a boat without a driver today-just  floating in the water. The only notable event today is that Fed Vice Chairman Yellen will give a speech to the Economic Club of New York this afternoon.  Over the weekend Ms. Yellen made comments that it is to soon to lift the Fed’s “accommodating policy”.  The IMF has lowered it’s growth forecast for the US and Japan.  The US faces higher commodity prices (oil,grains, etc), that will prolong the economic recover.  Japan’s growth was also downgraded after last months earthquake devastated the country-and it’s economy.  Both countries lack credible deficit reduction policies.  Fears of a double dip recession seem to be on the back burner of most economists, but the lack of significant and sustainable growth will be the US economies hardest battle. World equity markets were mostly lower-and US Futures are barely hanging on to positive numbers at this time. Silver reached it’s highest level since January 1980 Oil:$111.70                                               Gold:$1470.90 NO DATA DUE TODAY HAVE A GREAT DAY & GOOD LUCK

The Week Ahead from FXDD Posted: 11 Apr 2011 05:23 AM PDT

Feds Dudley says important not to overreact to rising inflation Posted: 11 Apr 2011 04:40 AM PDT The US economy has lost some momentum in the past two months Loss of momentum to rising oil prices Headline inflation to rise with higher oil prices Important not to overreact to rising inflation Overreaction would lead to monetary policy mistake Big focus for the Fed is inflation expectations with a rise being a concern Shouldn’t be overly enthusiastic about tightening Fed sets policy for US, not global economy Dudley’s comments are somewhat dovish and suggest that he is cautious on changing policy now.  He is the Vice Chairman of the Federal Reserve so his comments are of importance to the Feds leaning.

ECB’s Honohan Posted: 11 Apr 2011 02:03 AM PDT Too early to say when Ireland regains market access. “Key thing” for Ireland is fiscal adjustment. Doesn’t see increase in EU24B capital for Irish banks. Expects to see Irish banks reduce relieance on ELA. ECB rate increase is not an issue currently.

Italian Industrial Production Posted: 11 Apr 2011 01:02 AM PDT Came in at 1.4%; as expected. The market had a limited reaction to the release.

French February Industrial Production rises 0.4% from prior month Posted: 10 Apr 2011 11:49 PM PDT French Industrial Production m/m rose 0.4%, weaker than the 0.5% expected. Manufacturing Production m/m rose 0.7%, matching estimates. Eur/Usd is up about 10 points since release, trading at 1.4458.

4-11 Economic Calender Posted: 10 Apr 2011 11:04 PM PDT

George Soros Comments on Euro Hikes Posted: 10 Apr 2011 05:13 PM PDT George Soros commented that the ECB rate increase is ‘inappropriate’ amid the sovereign debt crisis. These comments however have had little effect on the bid for Euro as we have seen the highest levels to start the trading week since January 2010. The pair is approaching what could prove to be some trendline resistance.

Japan’s Machine Orders Posted: 10 Apr 2011 05:03 PM PDT Japan’s February Machine Orders fell below expectations as we have seen risk pairs gain a bid against the USD and JPY to open the trading week with the bid continuing following the Euro rate hike to end the prior week. Machine Orders (MoM) - Survey:-0.9%   Actual:-2.3%   Prior:4.2% Machine Orders (YoY) - Survey:9.0%   Actual:7.6%   Prior:5.9%

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