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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Thursday, May 31, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-May.31.2012

Posted: 31 May 2012 05:20 AM PDT

Good Morning:

Some positive data from German gave the markets a bit of a pick up as the month ends.
German retail sales (April) up .6%
German jobless total down 5K
German unemployment rate 6.7% down from 6.8% (this is the lowest level since reunification)

Yesterday’s market sell off showed how the markets are thinking about the sad state of affairs in Europe.
Yesterday we saw Italian and Spanish bond yields climb-but we also saw record low yields in the US, UK, Finland,Netherlands,France and Austria, as money made it’s way to safer havens.

Spanish banks lost a total of 1.9% of their deposit base-as Spanish investors removed their cash from the banking system.
Was the money used to “make ends meet” or was this a sign of a nervous economy.  I think the latter is the main reason. 

Asian equity markets were lower-while European and US Futures are in positive territory.

ADP employment data showed a rise of 133K in the private sector.

Gold & Silver are lower.
Oil is higher-but still under $88/bbl.

HAVE A GREAT DAY & GOOD LUCK
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Wednesday, May 30, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-May.30.3012

Posted: 30 May 2012 05:16 AM PDT

Good Morning:

Another bad day for the Euro Zone:

The single currency came under heavy pressure this morning as the ongoing worries over the Euro Zone, with the main catalyst being Spain’s beleaguered banking sector.

Italian auction results:  worse bids and missed full target amount.
5 year: yield 5.66% versus 4.86% previously
10 year: yield 6.03% versus 5.84% previously

Spanish/German 10 year gov’t bond yield spread widens to 537 bps from 508bps.

The National Bank of Greece commented that if Greece left the euro:
-living standards would drop
-incomes would be cut by 1/2
-unemployment would climb

I think we all know this-the entire region is in a catch 22 situation.

WTI dropes below $90/bbl-ahead of inventory reports.

World equity markets and US Futures are all negative.

Metals are also in negative territory.

HAVE A GREAT DAY & GOD LUCK
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Friday, May 25, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-May.25.2012

Posted: 25 May 2012 05:39 AM PDT

Good Morning:

A none event overnight session greats us this morning.

Some (non-encouraging) comments from Belgian Foreign Minister Reynders kept the markets awake:
1) Greece can’t handle further spending cuts
2) Greeks need to pay their taxes
3) Would be "grave professional error" if central banks and companies not preparing for Greece euro exit

More bad news from Greece:
Tourism fell 15.1% in Q1-2012 according to data from the central bank.
Authorities ask Greek’s to keep their money in the banks-as they are concerned of a run on the banks.
Potential Greek bank run could be contagious throughout the region.

Asian equity markets were mixed-Europe is lower and US Futures are also lower.
Gold, Silver and Oil are all slightly lower. 

Remember that both NY and UK centers are closed on Monday-and markets may be illiquid.

HAVE A GREAT DAY- WEEKEND & GOOD LUCK
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Thursday, May 24, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-May.24.2012

Posted: 24 May 2012 05:21 AM PDT

Good Morning:

Some weak economic data from the Euro Zone kept the single currency under pressure.

German IFO business climate down at 106.9-median forecast was for 109.4
Dutch unemployment moves up to 6.2% from 5.9%
German May flash manufacturing PMI 45.0 down from 46.2-forecast 47
French May flash manufacturing 44.4 down from 46.9-forecast 47
one flash composite PMI 45.9 down from 46.7-lowest read since June 2009

The news in Europe continues to disappoint-and is there any real remedy-certainly not in the short term.

Asian equity markets were mixed.  European equities are all higher-IS Futures are also higher at this time.
Gold, Silver and Oil are all higher. 

HAVE A GREAT DAY & GOOD LUCK
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Wednesday, May 23, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-May.23.2012

Posted: 23 May 2012 05:27 AM PDT

Good Morning:

The euro is close to a 21 month low versus the greenback.
With Euro Zone leaders meeting today, the markets are very skeptical that there will be any new ideas to reign in the European crisis.
Italian May consumer confidence falls to 86.5 from 89.0.

Japan’s downgrade was a warning to the rest of the world about growing debt.  With Japan’s public debt growing, and no sound fiscal policy to reign in the problem-Japan’s future is not looking good.
Japan’s public debt is expected to reach over 235% of GDP this year.  This is compared to the US-which is running at 70% of GDP .
This ratio is not sustainable-and with Japan going into it’s 3rd (lost) decade-the world’s 3rd largest economy is clearly in danger of imploding.
With the BOJ’s stimulus measures and continued bond auctions, the country will stay afloat-but the long term may turn very ugly.

World equity markets are lower-as are US Futures.

Oil and Gold are also lower.

HAVE A GREAT DAY & GOOD LUCK

 
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Tuesday, May 22, 2012

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

Bobbys Corner-Open Market-May.22.2012

Posted: 22 May 2012 05:21 AM PDT

Good Morning:

The overnight session started with Fitch Rating;s downgraded Japan.  The downgrade was for Japan’s long term rating-and was moved to A+-with a negative outlook. 

The greenback was higher today-as continued concerns over the euro region supported the move to the safe haven of the USD.

JP Morgan’s losses could exceed $7 billion-according to a report from the UK.

In European news:
Spain’s bank losses could reach 260 bln euros.
Spain sold 2.53 bln euros of 3 & 6 month bills:  They are selling their treasuries-but are paying the price.
3 month bills yield .846%  versus .634%
6 month bills yield 1.737% versus 1.58%
IMF suggests that BOE should cut rate and expand the QE program.

Asian equity markets were higher-as are European and US Futures.
Oil is a touch softer
Gold & Silver are lower.

HAVE A GREAT DAY & GOOD LUCK
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