Bobbys Corner-Open Market-October.31.2011

Good Morning:

The Bank of Japan (BOJ) intervened in the FX markets as the USD/JPY came very close to breaching the 75.00 barrier at the start of Asian trading.  The pair moved about 300 points after the announcement. With the vital export business again in jeopardy with the USD/JPY at 75, the BOJ needed to move, as they have been talking about intervening for weeks.
The JPY moved quickly, but shortly thereafter gave back some of the momentum that had been established just after the intervention.  Comments from BOJ officials seem to indicate that  intervention will need to continue.
 
The EUR/USD pair sold off, and dropped though the key 1.40 level overnight.  With doubts rising about the effectiveness of the EFSF European rescue plan-the pair took a bit of a licking.
The ECB was seen in the marketplace again last night buying Italian and Spanish debt.

Dow Futures are lower-along with gold and oil.

HAVE A GREAT DAY & GOOD LUCK
 

Bobbys Corner-Open Market-Aug.4.2011

Good Morning:

We start the morning off by noting that both the ECB and Bank of England left their benchmark interest rates unchanged today.
This was highly expected even though the UK economy continues to show signs of  faltering , and the EU has a debt  crisis that is not going away anytime fast.

In other FX news-the Bank of Japan joined the Swiss National Bank by staging an intervention in the forex markets that drove the USD/JPY higher -getting the pair over 80.oo for the first time since July.  The pair has since moved back into the 79 handle.  The BOJ stated that they will continue with their QE program by adding 10 Trillion yen to their monetary policy.  With the JPY trading below the key 80.00 level, Japanese exports (the bulk of their economy) get hurt, and erode corporate profits.

With data showing that the US economy is lackluster at best-the powers to be at the Federal Reserve, along with think tanks around the world, are examining to see if the US economy is heading back into recession (even though many think that we never got out of the last recession).
Economist will continue to examine the data-and tomorrow’s employment figures will be a major factor in determining the state of the US economy.

Equity futures are much lower again this morning-while gold is higher again>

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Aug.3.2011

Good Morning:

The Swiss National Bank seems to have had enough of the recent strength of the CHF, and they came out swinging as they cut rates in a surprise move to the marketplace.  The franc fell after the announcement, as the Swiss government is concerned that the strength of the franc will undermine the county’s economic recovery.
Analysts feel that the rise in the CHF will only be temporary-as the franc is used as a refuge in uncertain times.  Until the nervousness in the markets slow, (which there is no sign of in the immediate future), the franc will continue to attract investors. 

The JPY also lost ground versus the Euro as the Bank of Japan has indicated that they will add money to the system to stop the rise in the currency.  Concerns that the rise in the JPY will hamper any economic recovery, the nations leaders have stated that they are strongly commited to helping their counrties export business expand.

After the passing and signing of the US debt limit bill yesterday-Moody’s and Fitch affirmed the USA’a AAA rating, but warned that downgrades were possible in the future if they see no action to stem the deficit, and/or  continued weakening in the US economy. 

Equity futures are higher at this time.  Gold and silver rallied-with Gold hitting another high overnight.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.7.2011

Good Morning:

The ECB raised their benchmark interest rate by 25 basis points to 1.25%.  This was wildly expected in the marketplace.  The Euro has since weakened. The ECB raised rates as the fear of inflation in the region was stronger that the sovereign debt issues plaguing the EU.  With inflation raising and the German economy booming-the markets expect the ECB to boost rates again before year end. This is the first interest rate hike since 2008.
Portugal is getting ready to sort out a bailout package.  Estimates are that this bailout may reach as high as 75 billion euros ($107 billion), as Portugal becomes the 3rd nation in the EU to seek a bailout.  Unnamed officials stated that they do not anticipate any other EU sovereigns to need financial assistance-but I think that we have heard this before.
In other news:  The Bank of England left interest rate and their QE program in place.  The Bank of Japan offered a lending program to assist companies affected by the earthquake-and commented that this may decrease growth in Japan for months (I think years) to come.

 Asian equity markets were mixed-and European markets along with US Futures are higher at this time.

Oil jumped over $109/barrel in overnight trading.

Oil:$108.91                                                                          Gold:$1459.70

Bobbys Corner-Open Market-Oct.26.2010

Good Morning:

I am back from Kuwait and Qatar- and will be in Dubai and Abu Dhabi in 2 weeks-so  the  fall road trip schedule keeps getting busier.

The JPY lost some ground overnight as speculation  mounts that the Bank of Japan may reenter the marketplace to keep the Yen weak.  The thought of BOJ intervention put the markets on edge during the Asian session.
GBP jumped as GDP in the UK beat analysts estimates-thus putting the governments asset purchase program on hold-as they wait to see how consumers react as the holiday season approaches.

Equity markets in Europe are lower-as are US Futures, after UBS announced lower than expected Q3 profits.
In the US- Ford announced higher than expected earning-showing that the #2 US automaker has made significant progress in the last 2 years to build up the brand.. DuPont also beat analysts estimates.

Oil:$82.06                                                    Gold:$1329.50

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Oct.6.2010

Good Morning:

Fitch ratings downgraded Ireland to A+ from AA-, as they also review the ratings of various Irish banks.
A strong Portuguese debt auction along with better than expected factory order data from Germany helped keep the Euro strong.
The USD downward trend continues as speculation mounts that the Fed will join the BOJ in the purchase of government debt to bolster the economic recovery.  Yesterday’s announcement from the BOJ that they will purchase $60/billion of  assets, along with lowering their key interest rate to near zero is a clear sign that the Japanese government will do everything possible to keep their economy from faltering.
The Aussie and Loonie have been big winners of the latest weak USD trend while commodity prices rise-we will see if their rally is sustainable as we get closer to the US employment data on Friday.

Worldwide equity markets rose on speculation that central banks will need to continue their efforts to stimulate economies.  US Futures are also higher at this time.
Silver rose to a 30 year high, Oil stayed fairly stable in the $82/bar range, anfd Gold hit another record overnight.

Oil:$82.62                                              Gold:$1347.50

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Oct.4.2010

Good Morning:

The Euro lost some steam in overnight trading as a report from the FT stated that Ireland’s budget deficit will be higher than previously forecast.  This adds to  the concern that many of the Euro Zone’s sovereign debt issues will reduce demand for euro based assets.
Also- a bit of profit taking also added to the lower Euro this morning.
The JPY also stopped a 4 day rally versus the USD as speculation mounts that the BOJ may take additional credit-easing measures.  The BOJ is beginning a 2 day meeting-and the main topic is expected to be the need for additional currency intervention or other measures to spur  growth in the world’s 3rd largest economy.

Asian equity markets were mostly higher-and European equity markets were down across the board, as are US Futures at this time.
Oil and Gold maintained their strong levels over the weekend.

Oil:$81.45                                           Gold:$1317.50

Bobbys Corner-Open Market-Sept.16.2010

Good Morning:

The Euro saw gains across the board in overnight trading.  With  decent Spanish  bond auction results, strong buying of EUR/GBP cross on the heels of very poor UK retail sales,  buying of EUR/JPY as the BOJ is still buying USD/JPY, along with trade data from the Euro Zone which was much better than expected, all assisted in the Euro rally.
The Swiss National Bank left rates steady-to  help keep any chance of an economic recovery on track.

After the BOJ intervened in the FX markets yesterday-it appears that they are still in the markets-but there is no confirmation from the Japanese Government.

World equity indexes were lower overnight, and US Futures are also pointing to a lower opening this morning.

Oil:$75.10                                        Gold:$1278.20

HAVE A GREAT DAY & GOOD LUCK

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