Forex Market Updates & Commentary

University of Michigan Confidence Better Than Expected at 60.9 From a Survey of 58.0 and a Prior of 57.5
Forex Weekend Wrap up TODAY at 11:00AM with Greg and Shawn
Bobbys Corner-Open Market-October.28.2011
US Data Released Weaker
Fitch says 50% haircut would be a default event
US Personal Income, Spending & Employment Cost Index Data Due at 8:30am
EU wants an FX rate pledge from China at the G-20 meeting, according to and EU official.
Swiss KOF leading indicator (Oct) 0.80 vs. 1.00 expected.
EUR/JPY testing support @ 107.336
Analysts at Investec say ECB will cut rates by 25 bps next week.
EUR/USD consolidating between 1.41611 and 1.41934
Eurozone Q2 household savings rate rises to 13.9% vs. 13.6% in Q1.
USD/CHF developing short-term trend line support
Goldman Sachs economists say a Chinese reserve requirement cut is unlikely, may grow 8.6% in 2012.
China vice fin. minister sayas sees China as an important investor in the EFSF.

University of Michigan Confidence Better Than Expected at 60.9 From a Survey of 58.0 and a Prior of 57.5

Posted: 28 Oct 2011 06:55 AM PDT

Forex Weekend Wrap up TODAY at 11:00AM with Greg and Shawn

Posted: 28 Oct 2011 06:29 AM PDT

Forex Weekend Wrap up TODAY at 11:00AM with Greg Michalowski and Shawn Powell – Register now

Bobbys Corner-Open Market-October.28.2011

Posted: 28 Oct 2011 05:41 AM PDT

Good Morning:

The Forex markets were in consolidation mode in overnight trading after yesterday’s 200 point rally in the EUR/USD pair after the EU summit.
China is now in the forefront, as the leaders of the EFSF are in Asia looking for commitments of capital for the fund.
Reports show that China already has a 600 Billion Euro stake in the region-so it seems likely that they will have interest in continuing to support the European credit markets.
In other European news-Spain’s unemployment rate rose to a 15 year high-climbing above 21 percent. This is the highest level in the Euro Zone, and most certainly puts a damper on any recovery in the regions 4th largest economy.
The GBP took advantage of the nervous markets and rose-as investors look at UK assets for relative safety.

Asian equity markets rose-as European equity markets were lower-and US Futures are lower at this time.
Oil, gold, and silver are all lower at this time.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

US Data Released Weaker

Posted: 28 Oct 2011 05:33 AM PDT

Employment Cost Index: Survey: 0.6% Actual: 0.3% Prior: 0.7%

Personal Income: Survey: 0.3% Actual: 0.1% Prior: -0.1%

Personal Spending: Survey: 0.6% Actual: 0.6% Prior: 0.2%

PCE Deflator: Survey: 3.0% Actual: 2.9% Prior: 2.9%

PCE Core(MoM): Survey: 0.1% Actual: 0.0% Prior: 0.1% Revised: 0.2%

PCE Core(YoY): Survey: 1.7% Actual: 1.6% Prior: 1.6% Revised: 1.7%

Fitch says 50% haircut would be a default event

Posted: 28 Oct 2011 04:32 AM PDT

Adds that downward ratings on sovereigns is to persist
The post debt Greek rating will likely be B or lower
Debt to peak at 143% of GDP in 2013

EURUSD moves lower on the news headline

US Personal Income, Spending & Employment Cost Index Data Due at 8:30am

Posted: 28 Oct 2011 04:21 AM PDT

EU wants an FX rate pledge from China at the G-20 meeting, according to and EU official.

Posted: 28 Oct 2011 02:49 AM PDT

Swiss KOF leading indicator (Oct) 0.80 vs. 1.00 expected.

Posted: 28 Oct 2011 02:48 AM PDT

EUR/JPY testing support @ 107.336

Posted: 28 Oct 2011 02:45 AM PDT

Since the end of yesterday’s trading day, the EUR/JPY has been recieving support from 107.336 where we currently find both the 38.2% fibo line and the 100 bar moving average.

Analysts at Investec say ECB will cut rates by 25 bps next week.

Posted: 28 Oct 2011 02:38 AM PDT

EUR/USD consolidating between 1.41611 and 1.41934

Posted: 28 Oct 2011 02:33 AM PDT

Seen on the 15 minute chart, the pair has traded between these two levels today; testing support and resistance but not able to break out. The first level lower we have the 100 bar moving average at 1.41503 and to the topside we look to 1.42457.

Eurozone Q2 household savings rate rises to 13.9% vs. 13.6% in Q1.

Posted: 28 Oct 2011 02:02 AM PDT

USD/CHF developing short-term trend line support

Posted: 28 Oct 2011 01:16 AM PDT

The pair is developing a bullish support line since the end of yesterday; currently testing resistance from the 100 bar moving average and 38.2% line. In the case of a break higher through .86409, we look to the 50.0% at the next target.