FOREX QUICK: EUR/GBP moving lower on EUR stalling

FOREX QUICK: EUR/GBP moving lower on EUR stalling

Rebroadcast of Tuesday July 27 2010 Webinar

Rebroadcast of Tuesday July 27 2010 Webinar

Forex Morning Report- July 28

Forex Morning Report- July 28

Durable Goods Orders Worse Than Expected

Durable Goods Orders:   Survey:  1.0%      Actual: -1.0%     Prior:  -1.1%     Revised: -.8%

Durables Ex Transportation:   Survey:  0.4%      Actual:  -.6%     Prior:   0.9%    Revised:  1.2%

Bobbys Corner-Open Market-July.28.2010

Good Morning:

The GBP rose to a 5 month high-running through the 1.56 level before settling back into the 1.55 handle.  The positive news out of the UK may not be sustainable-but the bulls are in control for the time being.
EUR/USD traded around the 1.30 handle most of the session.  The pair stalled at 1.3041 before settling in to a narrow range.  JPY was stronger overall.  As sentiment rises that the global economic recovery is slowing, investors looked to the safety of the JPY versus higher-yielding assets.

Asian equity markets rose-European markets are lower-and US Futures are mixed at this time.  Concerns of the economic recovery slowing down added to today’s sell off in Europe. 

We will be looking at this morning’s Durable Goods data for direction.

Oil:$77.39                                                        Gold:$1162.60

HAVE A GREAT DAY & GOOD LUCK

Durable Goods Data Due at 8:30AM

Fisher Comments

Following King, these comments were made:

• Upside risks to CPI have grown, but also downside risks to global growth.
• Financial markets have become fragile, exacerbating tight credit.
• Expects the economy to evolve “broadly in line” with May inflation projections.
• Any future monetary tightening would involve a rise in rates first.
• Would not want to do anything that impacts Gilt market

BOE Gov King Speaks

Governor King made the following statements while testifying, along with other BOE MPC members, on monetary policy and financial stability:

• It is important to implement new basel standards over a long transition period.
• Financial markets are more volatile due to concerns about bank balance sheets.
• Q2 GDP growth is encouraging, but must be careful not to read too much into one number.
• Can’t be certain that recovery will be sustained in the UK.
• Risks on both upside and downside to inflation.
• Vat tax will likely keep inflation above target for much of 2011.
• MPC debate is above appropriate degree of stimulus; not applying brakes.
• Arguing that we have room to use monetary policy in either direction.
• It is very important for Britian to demonstrate that there is a plan to control government debt.
• Current growth rates (of money) are not a threat to inflation.
• When it comes to selling assets- must come with pre-announced program.
• Principle of bank levy as medium to long term instrument is sensible.
• Fiscal positions in Europe and U.S. are very different, but all must have a credible plan.
• Paying out large amounts in dividends and bonuses is not helping balance sheets.
• Lending agreements with banks have not been effective.
• Government needs to look at the role of state owned banks in boosting lending.

The GBP/USD trading to a session low of 1.5544 following the release of these comments.