Forex Market Updates & Commentary

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• Fed’s Evans on the newswires
• Forex Morning Report- June 8th
• EURCHF falls and falls and falls again
• Forex QUICK: USDCAD floor at 1.0514 defines that risk. Now can it rally
• Forex QUICK: GBPUSD and EURGBP may be the focus today
• Canada Housing Starts Worse Than Expected
• Bobbys Corner-Open Market-June.8.2010
• Forex QUICK: EURUSD continues consolidation pause
• Canada Housing Starts Data Due at 8:15AM
• NY Opening Forex Commentary for June 8th is available for viewing
• German Industrial Production
• Swiss CPI
• German Trade Balance
• Japanese Leading Indicators
• 6-8 Economic Calendar

Fed’s Evans on the newswires Posted: 08 Jun 2010 06:32 AM PDT Fed’s Evan says that the EU spillover could inhibit credit further in the US. He sees corporations being cautious about permanent hiring with consumer growth modest and inflation not much of a problem. Finally, he comments that Fed policy is appropriate but very accomodative. His comments outline the dilemma of the global economy and also the knifes edge it may be sitting on. The Eurozone seems to be accepting of a weak EURO policy in order to export it’s way out of its problems. This may ultimately not be what the doctor ordered in countries like Switzerland who is reliant on exports to the Eurozone nations. Evans is thinking the same for the USA. In addition, a stronger dollar not only has a trade impact with the Eurozone but also with China. The Eurozone benefits from a strong dollar since the yuan is tied to the dollar. This makes the EURO weaker on a relative basis and will increase their exports to that region at the expense of US exporters. Treasury Secretary Geithner was warning over the weekend that the EU should focus on stimulating domestic spending, and not rely on US spending and importing their goods. However, the countries in the EU are looking to cut fiscal spending and raise taxes to tackle their debt issues. This isn’t exactly stimulative to domestic spending. So the net result, is if the EURO goes too far, the risks increase for other countries in the process -including the US. Perhaps the US can continue to chug along. However, there still are headwinds that could intensify (housing, commerical real estate, employment) which could threaten the gains that have been made to date and bring down the rest of the world in the process. It is probably not a wonder that the Dow is back below the 10,000 level. Multi national corporations are going to find it increasingly difficulty in maintaining earnings if exports become less competitive abroad and global growth slows at the same time.

Forex Morning Report- June 8th Posted: 08 Jun 2010 06:30 AM PDT Forex Morning Report- June 8th

EURCHF falls and falls and falls again Posted: 08 Jun 2010 05:54 AM PDT New lows for the pair. Still risk is for intervention at some point.

Forex QUICK: USDCAD floor at 1.0514 defines that risk. Now can it rally Posted: 08 Jun 2010 05:49 AM PDT

Forex QUICK: GBPUSD and EURGBP may be the focus today Posted: 08 Jun 2010 05:20 AM PDT

Canada Housing Starts Worse Than Expected Posted: 08 Jun 2010 05:16 AM PDT Housing Starts:          Survey:  202.0K         Actual: 189.1K           Prior:  201.7K           USD/CAD Trading slightly lower on the news.

Bobbys Corner-Open Market-June.8.2010 Posted: 08 Jun 2010 05:13 AM PDT Good Morning: Fitch Ratings stated that Britain’s deficit challenge is “formidable”.  This statement raises concerns that the regions financial problems are spreading.  This added pressure to the new British coalition government to come up with plans to reduce public spending and to trim the budget deficit. Fed Chairman Bernanke commented yesterday that the recovery in the world’s largest economy (the US), is “moderate paced”, although unemployment may remain high.  He also commented that investors aren’t “completely convinced” problems are solved. Asian equity markets were higher, and European stocks are lower at this time.  US Futures are looking at a positive opening this morning after yesterday’s 115 point decline.  Gold hit a record price in overnight trading to $1252/oz.  The market has since pulled back a bit. Oil:$71.55                                  Gold:$1245.70 TIME FOR  EST PRIOR 10:00A.M. IBD/TIPP ECONOMIC OPTIMISM JUNE 49.O 48.7O HAVE A GREAT DAY & GOOD LUCK

Forex QUICK: EURUSD continues consolidation pause Posted: 08 Jun 2010 05:06 AM PDT Forex QUICK: EURUSD continues consolidation pause

Canada Housing Starts Data Due at 8:15AM Posted: 08 Jun 2010 04:47 AM PDT

NY Opening Forex Commentary for June 8th is available for viewing Posted: 08 Jun 2010 04:30 AM PDT

German Industrial Production Posted: 08 Jun 2010 03:03 AM PDT German Industrial Production m/m came in at 0.9%, stronger than the 0.7% expected, but weaker than the 4.0% prior reading. Eur/Usd is just off its session lows, trading at 1.1910.

Swiss CPI Posted: 08 Jun 2010 12:24 AM PDT Swiss CPI m/m came in at -0.15, weaker than the 0.1% exepcted and the prior reading of 0.9%. Weak number for the CHF as Usd/Chf climbed to a new high of 1.1640 and Eur/Chf to 1.3900.

German Trade Balance Posted: 07 Jun 2010 11:23 PM PDT German Trade Balance came in at 13.1 b, weaker than the 14.1 b expected. Eur/Usd  traded down to 1.1955 upon release, the pair is currently at 1.1963.

Japanese Leading Indicators Posted: 07 Jun 2010 10:07 PM PDT Japanese Leading Indicators came in at 101.7%, slightly weaker than the 102.8% expected and prior reading of 102.7%. Usd/Jpy currently trades at 91.66 with not much market reaction to figures.

6-8 Economic Calendar Posted: 07 Jun 2010 08:50 PM PDT

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