Monday, June 11, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-June.11.2012

Posted: 11 Jun 2012 05:39 AM PDT

Good Morning:

Spain is on center stage-as the EU agreed to a 100 billion euro bailout for Spain’s banks.
Spain requested help on Saturday, and the EU came up with the plan. 
Spain is calling the deal a credit agreement-not a rescue.  Semantics aside-this is a bailout for the Spanish banks.
As the markets generally do- they are optimistic on this news (as they were after the bailout of Greece,Portugal and Greece 2), and euphoria reigns the marketplace.
The problem is that nothing has changed in Spain- stagnant economy, rampant unemployment, and high public debt at an unsustainable level. 
They have been given a band aid to stop the bleeding-and it will only hold for a short period of time.
In the past, the markets have rallied on bailout news, only to quickly reverse themselves once “reality” sets in.
Remember this next month-when the markets reverse themselves.

We will see the specific details of the “bailout” in the next few days-as there has been no austerity conditions or monitoring of the economy, which were forced on Ireland and Greece when they were offered their bailout programs.

World equity markets and US Futures are all higher-as the euphoria is still in the air.
Gold, Oil and Silver are all higher.

HAVE A GREAT DAY & GOOD LUCK
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)