Forex Market Updates & Commentary

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• US ISM comes in better than expectations
• Forex QUICK: EURGBP falls below 100 and 200 bar MA support and sends the EURUSD and GBPUSD in opposite directions
• Forex QUICK AUDUSD prepares for the RBA announcement
• Forex Morning Report - May 3rd
• ECB will accept all Greek Debt as collateral
• Germany’s Merkel on the newswires
• Forex QUICK: EURUSD tries to push higher. Watching 1.3233 below.
• Forex QUICK: USDJPY moves above ceiling resistance at 94.34
• Consumer Spending and Income come in as expected.
• The Economic Releases and Events for May 3rd
• The NY Opening Forex Commentary is available for viewing
• Eurozone Final Manufacturing PMI
• Swiss SVME PMI
• ECB suspends collateral rules on Greek bonds

US ISM comes in better than expectations Posted: 03 May 2010 07:07 AM PDT US ISM comes in better than expectations ORDER BACKLOG INDEX 57.5 VS 58.0 IN MARCH PRICES-PAID INDEX 78.0 VS 75.0 IN MARCH INVENTORIES INDEX 49.4 VS 55.3 IN MARCH EMPLOYMENT INDEX 58.5 VS 55.1 IN MARCH PRODUCTION INDEX 66.9 VS 61.1 IN MARCH NEW ORDERS INDEX 65.7 VS 61.5 IN MARCH

Forex QUICK: EURGBP falls below 100 and 200 bar MA support and sends the EURUSD and GBPUSD in opposite directions Posted: 03 May 2010 06:48 AM PDT Forex QUICK: EURGBP falls below 100 and 200 bar MA support and sends the EURUSD and GBPUSD in opposite directions

Forex QUICK AUDUSD prepares for the RBA announcement Posted: 03 May 2010 06:33 AM PDT Forex QUICK AUDUSD prepares for the RBA announcement

Forex Morning Report - May 3rd Posted: 03 May 2010 06:25 AM PDT

ECB will accept all Greek Debt as collateral Posted: 03 May 2010 06:03 AM PDT As part of the package released for Greek debt aid, the ECB will accept all Greek debt as collateral.  That is if Moody’s or Fitch were to lower the Greek debt to Junk status, the ECB would still accept the sovereign debt from Greek banks if they pledged it as collateral to get funding.  This is important as S&P is already below junk status at BB+ . Fitch is one notch away and Moody’s is expected to change their rating shortly (perhaps as early as today).  Although the rating downgrade will be a negative, it won’t be as shocking given the announcement.

Germany’s Merkel on the newswires Posted: 03 May 2010 05:56 AM PDT Says: Aid meant to stabilize Euro which will help German citizens. Lessons learned from Greek crisis Calls for extra steps to hinder the speculation States must be strict with budgets.

Forex QUICK: EURUSD tries to push higher. Watching 1.3233 below. Posted: 03 May 2010 05:53 AM PDT Forex QUICK: EURUSD tries to push higher. Watching 1.3233 below.

Forex QUICK: USDJPY moves above ceiling resistance at 94.34 Posted: 03 May 2010 05:45 AM PDT Forex QUICK: USDJPY moves above ceiling resistance at 94.34

Consumer Spending and Income come in as expected. Posted: 03 May 2010 05:32 AM PDT Spending rises by 0.6% but the prior month is revised higher to +0.5% from +0.3% Income rose by 0.3% after a revised 0.1% gain (was 0.0%). US Savings rate declined to 2.8% as spending outstrips income. This is the lowest level since September 2008 which is not a good sign for future spending patterns. THe PCE Core rose by 0.1% as expected. THe EURUSD is unchanged at 1.3240. The USDJPY has gotten a boost however, and has broken resistance at the 94.34 level.

The Economic Releases and Events for May 3rd Posted: 03 May 2010 05:18 AM PDT The Economic Releases and Events for May 3rd

The NY Opening Forex Commentary is available for viewing Posted: 03 May 2010 04:33 AM PDT In the Morning report I go through the technicals that are driving the EURUSD, GBPUSD, USDCHF, USDJPY and USDCAD.

Eurozone Final Manufacturing PMI Posted: 03 May 2010 01:22 AM PDT Eurozone Final Manufacturing PMI came in at 57.6, slightly stronger than the 57.5 expected. Eur/Usd continues to trade  1.3235-45.

Swiss SVME PMI Posted: 03 May 2010 12:32 AM PDT Swiss SVME PMI came in at 65.9,stronger than the 64.2 expected and prior reading of 65.5. Usd/Chf remains at 1.0835 with Eur/Chf unchanged as well at 1.4327.

ECB suspends collateral rules on Greek bonds Posted: 02 May 2010 11:45 PM PDT  The European Central Bank has suspended its collateral rules on banks depositing Greek bonds until further notice, this news coming in an e-mailed statement. They see a Greek deficit reduction plan for aid appropriate. Greek bonds open higher with the 2-year yield falling 91 basis points. Eur/Usd is about 40 points off its low, now trading at 1.3245.

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