Bobbys Corner-Open Market-Jan.25.2011

Good Morning:

The big news in the overnight FX markets was that the GBP was pounded after very disappointing UK GDP data.
Cold weather hurt both the construction and services sector-thus leading to the decline in cable.  Data showing that this past December was the coldest in over 100 years also attributed to the decline.  Investors are sorting out if this is an issue with the overall weakness of the British economy, or is this just a one off problem due to the weather.
This data will certainly put pressure on the BOE to come up with a plan that combats inflation and increases growth in the country.

Concerns over Spain’s debt problems-along with news that Spanish banks may need additional capital were also center stage in the FX markets.

The Fed begins a 2 day meeting today-and President Obama will make his State of the Union address tonight at 9 PM.

Today we have data on home prices and Consumer Confidence.

Asian and European equity markets are mostly mixed-and US Futures are also pointing to a lower opening this morning.

Oil:$86.70                                                                                  Gold:$1329.20

HAVE A GREAT DAY & GOOD LUCK

BOE Osborne sees rates lower for longer

The BOE Osborne is on the newswires saying the central bank has freedom to keep rates lower for longer

GBPUSD breaks sharply lower on BOE Kings comments

Bobbys Corner-Open Market-July.8.2010

Good Morning:

Both the ECB and BOE left interest rates unchanged, which was highly expected in the marketplace.  Australian employment data printed at 45.9k  versus 15.3K-and the unemployment rate declined to 5.1%.  The Australian economy continues to surge ahead-as the rest of the world tries to keep up with their positive economic momentum.

The Yen lost some ground-as stocks rallied-and investor’s demand for the JPY waned.
Worldwide stocks gained on news from the IMF that they expect global economies to grow by 4.6% in 2010 (a bit optimistic for me).  This is a revision by the IMF-as they originally made comments in April that global growth would expand by 4.2%.
US Futures are slightly higher at this time-oil rose-gold is stable.

Oil:$74.75                                          Gold:$1201.20

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-June.10.2010

Good Morning:

Congratulations to the Chicago Blackhawks for winning the Stanley Cup by defeating Philadelphia 4-3 in overtime last night.  The Chicago fans have been waiting since 1961 for a NHL championship-Congratulations.

The Euro was a touch stronger in overnight trading.  The auction of Spanish notes had higher demand than expected, and comments from China that the common currency will survive the debt crisis in the EU.  Any increase in the Euro may be limited as the ECB announces no change in interest rates, which was expected by the markets.
The BOE  also left interest unchanged in the UK.
The Aussie rose as a report showed that the country added 26,900 employees last month.  Kiwi also rose, as New Zealand raised their benchmark interest rates.

Asian and European equity markets rose, and US Futures are also pointing to a higher opening this morning.
Gold was lower, and Oil rose.

Oil:$74.94                                                        Gold:$1225.50

Today’s data:

HAVE A GREAT DAY & GOOD LUCK

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.

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