Thursday, July 12, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.12.2012

Posted: 12 Jul 2012 05:35 AM PDT

Good Morning:

The FOMC minutes disappointed market participants as there was no sign of any additional QE.  The minutes did show a gloomy cloud over the economy. It looks like a “wait and see” attitude will be the current monetary policy before adapting any further stimulus measures.

Equity markets are struggling. Asian markets were all lower-European and US Futures are also lower.

In Europe- Bonds are rallying:
Dutch 2 year bonds turn negative for the first time ever.  last at -.001%.
Italy sold 1 year bills at 2.697% vs, 3.972% in June
Italian 10 year bonds-yields down to 5.75%
Spanish 10 year bonds-yields down to 6.53%

BUT-not all the news is positive:
Irish Q1 GDP -1.1%- much below Reuters consensus of +.4%
Greek unemployment rose again: 22.5% in June vs 22% in May- no surprises there.

US initial jobless claims 350K vs 372K

HAVE A GREAT DAY & GOOD LUCK

 

Gold and Silver are lower
Oil is lower-@ $84.53/bbl.

 
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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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Tuesday, July 10, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.10.2012

Posted: 10 Jul 2012 05:36 AM PDT

Good Morning:

Some good news for Spain overnight.
European finance ministers gave Spain an additional year to meet their deficit targets (3% of GDP in 2014 instead of 2013.
The ministers will front run the funds for the recapitalization of the banks by offering 30 bln euros by the end of this month-and up to a total of 100 bln euros.

China had some dissapointing data out today-they reported very weak import numbers, which were 1/2 of what was expected.

Bank of England’s King stated that the expected recovery in the UK, has not materialized as of yet.
He can’t be overly surprised by the lack of recovery.

  • UK economy is not showing signs of recovery
  • He is worried about the export outlook due to strong pound
  • Euro crisis causing 'great black cloud' of uncertainty

    Asian equity markets were lower-European and US Futures are higher at this time.

    Oil is lower.
    Gold and Silver is higher

    A GREAT DAY & GOOD LUCK
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Friday, July 6, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.6.2012

Posted: 06 Jul 2012 05:18 AM PDT

Good Morning:

Markets are not doing a lot-sitting around and waiting for this morning’s US jobs data.

The markets are looking for around 100K new jobs created-and for the unemployment rate to stay steady at 8.2%/
The markets will look at the recent averages to get a better picture of job growth during the past 12 months.
This will be interesting data to look at after the 8:30 initial numbers get published.

The biggest moves today are in the bond markets.
We have seen record lows for 2 year French debt, and the 2 year German Schatz has gone negative
again (currently at -.002%).

Spanish 10 year bonds had their worst day yesterday-taking yields just below 7%.
Spanish/German spreads widened to 555 bps-we saw these spreads in mid June too.
Italian bonds are also having a rough time today-as their yields are just below Spain’s-as contagion continues to plauge 
the EU markets.

Asian equity markets were lower-as are European equities, and US Futures.

Oil is lower-as are the Gold and Silver markets.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK
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Thursday, July 5, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.5.2012

Posted: 05 Jul 2012 05:21 AM PDT

Good Morning:

Well-an interesting morning greats us.

The ECB cuts their benchmark interest rate by 25 bps to .75% from 1%.
This was highly expected.  The ECB cut the deposit rate it offers to banks that park their excess funds with them t0 0%.

The Bank of England increased their QE program by 50 billion pounds.
In a surprise move the PBOC cut their 1 year lending rate by 31 bps to 6%.

Oil is higher again this morning.

Asian equity markets were mixed-European equity markets are now mostly higher-as are US Futures.

ADP: US added 175K private sector jobs-105K expected.

HAVE A GREAT DAY & GOOD LUCK
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Tuesday, July 3, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.3.2012

Posted: 03 Jul 2012 06:07 AM PDT

Good Morning:

A somewhat quiet overnight session-as the markets realize that the US will be closed tomorrow for the July 4th-Independence
Day holiday.

In an expected move-the RBA (Reserve Bank of Australia) left interest rates unchanged-with their benchmark rate staying stable at 3.5%.

Now for some European news:

Spanish unemployment dropped by over 2%-as the country gets ready for the summer tourist season.
German new car registration up almost 3%-they do love their cars!
Ireland looks to auction 500 mln euros of 3 months t-bill on July 5.
Italian PM Monti expects spending cuts to increase.

Oil is up over $2
Gold & Silver are also higher.

Asian & European equity markets are higher-as are US Futures.

HAVE A GREAT DAY & GOOD LUCK

 
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Monday, July 2, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-July.2.2012

Posted: 02 Jul 2012 05:50 AM PDT

Good Morning:

Lots of secondary noise from the markets today-but there was some good activity in the marketplace-especially for a Monday in July.

Last week’s positive market reaction from the EU Summit was a lift that the markets needed-but like all political events-talk is cheap.
The details are not clear and implementation will be even harder.  

According to Greek government sources-Greece received the remaining 1 billion euros from the last bailout agreement.

French National Auditor: 2012-13 will be “difficult”:
Estimate growth at .4% for 2012-1% for 2013.
6-10 bln euros in new deficit cutting measures for 2012
33 bln euros of cuts will be needed for 2013.
Where will they find these cuts?  Less wine and truffles maybe?

Asian equity markets were mostly higher-Europe is higher-US Futures are virtually flat at this time.

Oil, Gold and Silver are all lower.

HAVE A GREAT DAY & GOOD LUCK

 
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