Forex Market Updates & Commentary

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• ISM, Construction Spending All Come In Stronger
• Fed’s Bullard on the Wires
• Bobbys Corner-Open Market-December.1.2011
• US Construction Spending, ISM Figures Due at 10AM
• US Jobless Claims Have Surprise Rise, Revisions Also Worse
• US Jobless Claims & Continuing Claims Data Due at 8:30AM
• BoE’s King; spiral facing banks looks like a systemic crisis
• Fitch’s Riley; French rating at risk if crisis intensifies
• UK Manufacturing PMI
• Swiss SVME PMI
• Draghi says ECB bond interventions can only be limited
• Swiss GDP up 0.2% q/q, as expected
• 12-1 Economic Calendar
• China HSBC manufacturing PMI 47.7 for November.
• usd/cnh slowly building an uptrend

ISM, Construction Spending All Come In Stronger Posted: 01 Dec 2011 07:03 AM PST Construction Spending MoM:  Survey:  0.3%    Actual: 0.8%    Prior:  0.2%  ISM Manufacturing:   Survey: 51.8    Actual: 52.7    Prior:  50.8 November vs October 2011 Prices Paid:  45.0 vs 41.0 Production:  56.6 vs 50.1 New Orders: 56.7 vs 52.4 Backlog of Orders: 45.0 vs 47.5  Inventory Change: 48.3 vs 46.7 Employment:  51.8 vs 53.5  ISM Prices Paid:   Survey: 45.0  Actual: 45.0    Prior:  41.0

Fed’s Bullard on the Wires Posted: 01 Dec 2011 06:11 AM PST Says He supports central banks ‘swap arrangement’ He supported Bernanke on dollar swaps ‘Prudent’ to ‘bolster’ position via swaps So far we are not as bad as 2008-2009 Liquidity facilities could be reopened if needed Bernanke has been ‘very innovative’ in policy Europe unlikely to be solved by ‘silver bullet’ Europe crisis wont ‘go away very quickly’ Europe crisis about excessive government borrowing ‘Notion’ that ECB can run to rescue

Bobbys Corner-Open Market-December.1.2011 Posted: 01 Dec 2011 05:46 AM PST Good Morning: The euro picked up against the USD and JPY-after Spain and France had good bond auctions.  The euro also showed strength after six central banks acted together to cut the borrowing costs of USD.    Spain sold 3.75 billion euros of bonds-which was the maximum target of 5 year notes-with a yield of 5.544% compared to 4.848% at the last auction on Nov.3. France sold  1.57 billion euros of 10 year bonds at 3.18%-slightly lower than the 3.22% at the Nov.3 auction. Comments from ECB President Draghi describing the role of the ECB, and that the ECB will be willing to do more-if policy makers do there job, and get their act together. The continued sovereign debt crisis in Europe will be a main focus of the markets.  The action by the 6 central banks yesterday was positively embraced by investors.  The fact that this action was needed-shows how dire the bank funding situation is. Jobless claims were higher-up 6K to 402K. Remember-tomorrow is the US employment data report. Non Farm Payrolls  are expected to be up 120K-and the Unemployment rate should stay at 9%. US Futures are slightly lower Gold is up-Oil is down. HAVE A GREAT DAY & GOOD LUCK

US Construction Spending, ISM Figures Due at 10AM Posted: 01 Dec 2011 05:36 AM PST

US Jobless Claims Have Surprise Rise, Revisions Also Worse Posted: 01 Dec 2011 05:31 AM PST Jobless Claims:  Survey:  390K    Actual: 402K   Prior: 393K    Revised:  396K    Continuing Claims:  Survey: 3650K    Actual:  3740K    Prior: 3691K  Revised: 3705K

US Jobless Claims & Continuing Claims Data Due at 8:30AM Posted: 01 Dec 2011 04:10 AM PST

BoE’s King; spiral facing banks looks like a systemic crisis Posted: 01 Dec 2011 02:41 AM PST * liquidity only provides short term relief; crisis is one of solvency, not liquidity * gov’ts must confront causes of problems; only Euroarea gov’ts can solve crisis * resolving wider problems beyond UK authority

Fitch’s Riley; French rating at risk if crisis intensifies Posted: 01 Dec 2011 02:19 AM PST * French gov’t has capacity to support banks * banks don’t need help at current bond prices

UK Manufacturing PMI Posted: 01 Dec 2011 01:32 AM PST UK Manufacturing PMI came in at 47.6, stronger than the 47.1 expected. Gbp/Usd ran up to 1.5690 prior to release of number and has not gained since. The pair currently resides at 1.5686.

Swiss SVME PMI Posted: 01 Dec 2011 12:39 AM PST Swiss SVME PMI came in at 44.8, weaker than the 46.6 expected. Usd/Chf trades at .9127 and eur/Chf at 1.2258, unaffected by number as eyes are still set on market commentary from eurozone economic leaders.

Draghi says ECB bond interventions can only be limited Posted: 01 Dec 2011 12:30 AM PST This ccomment sent Eur/Usd down 30 points thus far to 1.3420.

Swiss GDP up 0.2% q/q, as expected Posted: 30 Nov 2011 10:54 PM PST Eur/Chf off about 15 points since release, to 1.2293.

12-1 Economic Calendar Posted: 30 Nov 2011 08:45 PM PST

China HSBC manufacturing PMI 47.7 for November. Posted: 30 Nov 2011 06:30 PM PST

usd/cnh slowly building an uptrend Posted: 30 Nov 2011 05:20 PM PST usd/cnh slowly building an uptrend after breaking through that downward trend-line.

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