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
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Friday, June 8, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-June.8.2012

Posted: 08 Jun 2012 05:27 AM PDT

Good Morning:

Risk off Friday!

Well-the optimistic mind set that the markets were showing has been eroded in a short 36 hours.

While market participants, (and I include all instruments), were anticipating  the prospect of global stimulus and additional monetary easing policy have been disappointed.
The ECB, BOE, and in particular the Fed all refrained from acting or even making reassuring statements to the markets.
So- as Central Bankers love to do-they will wait and see what happens.
Unfortunately-we can all write what the outcome will be-as they continue to do nothing-and the results will most probably not be pretty.

China’s surprise mid week rate cut was initially met with optimism-but if you read between the lines-they must be concerned about the
changing face of the Chinese economy.

Asian equity markets were lower-European equity markets are also lower-as are US Futures.

Oil, Gold and Silver are all lower.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK
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Thursday, June 7, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-June.7.2012

Posted: 07 Jun 2012 06:02 AM PDT

Good Morning:

Risk is back on the table today-as market participants are looking for a sign that the world’s Central banks will be looking to add some stimulus into the marketplace.

The Bank of England left interest rates unchanged-as was highly expected.  If they decide to add some additional QE-we will hear about it later.

Some employment data out of Europe:
French Q1 jobless rises to 10% from 9.8%-Q4
Greek jobless: 21.9% from 21.4%
Irish jobless: rises to 14.8% from 14.5%

France auction results were very well received-with very good rates

Spain-good auction-but they paid the price:
2 year yield: 4.335% from 3.463%
4 year yield: 5.353% from 4.319%
10 year yield: 6.044% from 5.743%

Asian equity markets were higher
Europe and US Futures are all in positive territory

Oil is also higher today
Gold and Silver are all lower

HAVE A GREAT DAY & GOOD LUCK
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Wednesday, June 6, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-June.6.2012

Posted: 06 Jun 2012 05:54 AM PDT

Good Morning:

As expected the ECB left interest rates steady at 1%.
ECB President Draghi has commented after the rate decision:
Growth remains weak within the Euro Zone
Continue refinancing procedures
Money spigots to be left wide open

Greek tourism revenue is expected to drop by 10-15% this year.
The drachma would bring 50%  discounts on holiday travel-let’s pack the suitcases!!

The Fed releases their Beige Book this afternoon-which is an overall view of the US economy.

Asian equity markets were higher-as is Europe-and US Futures.

Oil is higher
Gold and Silver are also higher.

HAVE A GREAT DAY & GOOD LUCK

 
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Tuesday, June 5, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-June 5.2012

Posted: 05 Jun 2012 05:37 AM PDT

Good Morning:

Markets continue to be illiquid as the Queen’s Jubilee celebration continues.

The RBA, (Reserve Bank of Australia), lowered their benchmark interest rate by 25 bps to 3.5%. This move was highly anticipated, and had little overall impact on the Aussie and the overall FX markets in general. The RBA stated that the move was in response to continued problems in Europe and the potential slowdown  of growth in China.

Weak data from the Euro Zone was not helpful for the markets either.
G-7 finance chiefs to hold emergency conference call-who knows?
Euro zone May PMI 46.7  better than the 46.5 flash read
Euro zone April retail sales -1.0% -2.5% y/y
German April Mfg orders -1.9% from forecast of -1%-March revised higher

Asian and European equity markets are mostly higher-as are US Futures
Oil is a touch softer @ $83.27/bbl
Gold & Silver are stronger.

HAVE A GREAT DAY & GOOD LUCK
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Monday, June 4, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-June.4.2012

Posted: 04 Jun 2012 05:30 AM PDT

Good Morning:

We start the week out on a quiet note.

The UK is away for the next 2 days-as the country celebrates Queen Elizabeth’s Jubilee Celebration.

Portugal’s rising unemployment rate is causing concerns in the Euro Zone.
Spain’s May jobless -.63% (this is not a big move-but a move in the right direction anyway).
Spain/German 10 year bond spreads down marginally to 523 bps from 528
Italian/German 10 year bond spreads down to 454 from 467

With a barren US economic calender today-markets will be taking a cue from the equity world.

Asian equity markets were lower-Europe is gaining and US Futures are in positive territory.

Oil, Gold and Silver are all lower.

HAVE A GREAT DAY & GOOD LUCK
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Friday, June 1, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-June.1.2012

Posted: 01 Jun 2012 05:23 AM PDT

Good morning:

Well- we start June on the same note that we left May-UGLY!

Here is the breakdown of the overnight session and major data:
 
The story starts in China-where manufacturing PMI for May missed the mark.  PMI was 50.4 versus 53.3 in April.  This was well below the consensus of 51.5
Euro Zone PMI fell to 45.1 from 45.9
Euro Zone unemployment rose to it’s highest level: 11%.
Italy’s unemployment rate rose to 10.2% (highest on record)
Spain’s rose to 24.3% from 23.1%

Asian equity markets were lower, Europe is mostly lower-as are US Futures

Gold and Silver are lower.
Oil is lower-trading in the mid $84/bbl levels.

HAVE A GREAT DAY & GOOD LUCK 

 The Euro hit a new 21 month low versus the USD at 1.2310.
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