Bobbys Corner-Open Market-March.4.2010

Good Morning:

Both the BOE kept interest rates steady.  BOE did not expand it’s asset purchasing program which was expected.
The ECB also left interst rates unchanged-and will have a conference call at 8:30 AM.
Greece began selling 10 year bonds today-pricing them with a yield of 6.39% vs.6.1% on their current bonds.
Greece’s prime Minister has promised to reduce their budget deficit by cutting spending and wages.  Today protesters occupied the finance ministry as a protest against the new proposals.

World equity markets were mostly lower-and US Futures are slightly higher this morning.

Oil:$80.76                                             Gold:$1138.40

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Jan.13.2010

Good Morning:

Comments from Bank of England policy maker Sentancethat cited that interest rates may have to increase in the UK,  helped the GBP rise. The idea of removing some stimulus measures is premature at this time, but we are seeing signals from various central bankers that this is the direction that they will be pursuing in the near future.  The USD is weaker, as is the JPY.

Equity markets were mixed in Asia, are also mixed in Europe.  The US Futures are slightly higher at this time.

Oil fluctuated either side of $80/barrel.  Most commodity markets also saw lower prices overnight.

Oil:$80.08                                  Gold:$1135.10 

HAVE A GREAT DAY & GOOD LUCK

BOE’s Sentance on the newswires

•  BOE WILL NEED TO ASSESS QUANTITATIVE EASING AGAIN IN A FEW MONTHS
• CHINA MAY BE HELPING ECONOMY MORE THAN EXPECTED
•  GLOBAL ECONOMY MAY BE TURNING AROUND MORE QUICKLY
•  DATA HAS BEEN MORE POSITIVE IN PAST MONTHS
•  CONSTRUCTION SEEING SOME SIGNS OF IMPROVEMENT
•  CAR INDUSTRY HAS SEEN LARGE DROP
•  THERE’S A LOT OF CONCERN ABOUT RECOVERY PACE
•  SEES SIGNS ECONOMY STARTING TO STABILIZE

The comment on QE has the market a little uneasy on the downside.  Increase QE is viewed as bearish for the currency.

Bobbys Corner-Open Market-Sept.10.2009

Good Morning:

As expected, the  Bank of England left interest rates unchanged.  The BOE also announced that they will continue to purchase up to $290 Bil in assets to shore up the weak economy.

The USD and JPY rose overnight as equity markets were lower in Europe.  Asian markets were mixed.  US Futures are pointing to a lower opening this morning.

China’s Premiere made comments overnight that China “will not and cannot” pull back on current economic stimulus programs, as the Chinese economy is ”unstable, unbalanced and not yet solid”.  

On another note, OPEC ministers agreed to keep production at present levels, hoping to maitain current prices in the $72/bar range. Metals are also lower this morning.

Oil:$71.60                                             Gold:$989.30

Today’s data:
Trade Balance:             exp; -27.1 Bil        prior: -27 Bil
Jobless Claims:            exp; 560K              prior: 570K

HAVE A GREAT DAY & GOOD LUCK

BOE extension of Asset Purchase Program hurts the pound

The BOE extension of the Asset Purchase Program by 50 billlion pounds has caused a sharp drop in the British Pound.   The Central Bank comments say the world economy is still in a recession. Nevertheless, the household and business confidence has picked up.  They cited that capacity is in the economy is likely to grow and that the UK recession was deeper than previously thought. They still see the restrictive credit as banks continue to repair their balance sheets.   The asset purchase program should take 3 months to complete.

The GBPUSD gapped lower off the news release.  The pair has plunged back below the key 1.6950 level, and the 100 hour MA for the first time since moving above the moving average at the 1.6443 level on July 30th.  The 100 hour moving average comes in at the 1.6878 level and this level should act as resistance on corrective moves to the upside today. 

On the downside, there is trendline support that comes in at the 1.6798 and below that the 38.2% retracement support comes in at the 1.6772 level.  A high level from August 3rd reached 1.6776 so the area has a few reasons for holding at the level.

Bank of England’s Agents on the Wires

BoE Agents: Seeing further evidence of pick up in housing markets activity

Bank of England’s Paper Comments

BoE Paper: UK and global economic outlook “highly uncertain”; Will continue to review scale of QE at monthly meetings

Bank of England’s Tucker Comments

BOE’s Tucker: “Confidence seems to have stabilized and economic activity improved a bit” - WSJ in update of earlier statements

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