Thursday, July 26, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.26.2012

Posted: 26 Jul 2012 05:29 AM PDT

Good Morning:

We had 2 markets this morning:

1) Pre ECB President Mario Draghi comments:
Markets were choppy-with no real direction-investors were starting to look at next week’s slew of economic data:
Tues/Wed- FOMC
Thursday- ECB and BOE meetings and rate decisions
Friday- US payroll and employment data

2) Post ECB President Mario Draghi comments:
Draghi says he will do whatever it takes to preserve the Euro (within ECB mandate).
He gives euro bears a bloody nose-as the EUR/USD jumps over 100 bps-after his comments.
He also stated that the ECB could restart it’s bond buying program to support “monetary policy transmission”-which had been disrupted by the sovereign debt crisis.
Bond yields have declined in Italy and Spain.

The sharp reaction to Draghi’s comments was due to the fact that the ECB is the only European institution with any credibility left-so instead of the market listening to politicians spewing political rhetoric all day-they are actually looking to the ECB for direction.

Equity markets in Asia were higher-As is Europe and US Futures.

Oil, Gold and Silver are all higher.

HAVE A GREAT DAY & GOOD LUCK
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