Wednesday, July 11, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.11.2012

Posted: 11 Jul 2012 05:46 AM PDT

Good Morning:

Markets are fairly calm this morning-as investors continue to search for the safest assets.

10 year yields on Austrian, Belgium and French bonds all still have a “2″ big figure.  This is versus the US and Germany which have a “1″ handle on their 10 year paper.

Spanish yields were a bit lower-after PM Rajoy outlined austerity measures.  Do not get too excited-it is still over 6.7%.
Spain to increase VAT to 21% from 18%-along with a slew of additional user taxes, and ending a rebate for home buyers.

This is just what the Spanish economy needs as the struggle to get out of this recession:
Higher taxes and additional austerity measures-the perfect recipe for an economic debacle.

Bank of Italy Governor Visco commented today that the spreads that the Italian bond markets must pay are unjustified.
He did state that some Italian banks need to increase their capital base,  cut costs, and improve their risk management processes.  
PM Monti stated that Italy is a “war”.  He states that the inherited public debt is an ongoing problem-ya think!
Italy seems a little defensive-as it looks like they will be the next “target” in the continuing economic battle in Europe. 

Oil is higher-back over $85/bbl.
Gold and Silver are higher.

Asian equity markets were mixed-Europe is lower.  US Futures are looking to a positive opening on Wall Street this morning.

HAVE A GREAT DAY & GOOD LUCK

 
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