Bobbys Corner-Open Market-March.12.2010
March 12, 2010 by Bob Slade · Leave a Comment
Good Morning:
The USD lost ground overnight as speculation that the Fed will keep interest rates low reduced demand for USD dominated assets. In other news, Janet Yellen will most probably be selected as vice chairman of the Fed. Ms Yellen is currently President of the San Francisco Fed, and has been a staunch supporter of lower interest rates to combat the global recession.
EU leaders will meet next week to discuss the potential need to issue bonds or give outright loans to Greece, as the country works on an auterity program aimed at cutting it’s staggering deficit.
Equity markets rose around the globe and US futures are also higher this morning. Banks and commodity companies helped keep equity indexes in positive territory.
Commodities in general rose across the board, with gold leading the charge.
Oil:$82.72 Gold:$1117.50
| TIME | FOR | EST | PRIOR | |||
| 8:30A.M. | ADVANCE RETAIL SALES | FEB. | -0.20% | 0.50% | ||
| 8:30A.M. | RETAIL SALES LESS AUTOS | FEB. | 0.00% | 0.60% | ||
| 8:30A.M. | RETAIL SALES EX AUTOS & GAS | FEB. | 0.30% | 0.60% | ||
| 9:55A.M. | U. OF MICHIGAN CONFIDENCE | MARCH | 74.O | 73.6O | ||
| 10:00A.M. | BUSINESS INVENTORIES | JAN. | 0.20% | -0.20% | ||
HAVE A GREAT DAY-WEEKEND & GOOD LUCK
Bobbys Corner-FOMC-Nov.4.2009
November 4, 2009 by Bob Slade · Leave a Comment
Hello All,
As expected the Fed kept interest rates unchanged at .25%
We are looking at the FOMC statement to decipher any changes regarding the timing of any future interest rate decisions.
Bobbys Corner-Open Market-Nov.4.2009
November 4, 2009 by Bob Slade · Leave a Comment
Good Morning:
The USD and JPY dropped overnight on speculation that the FED will not raise interest rates this afternoon, and that the FED will reiterate past statements that rates will stay on hold for an “extended period”. The markets will be looking for any changes in the FOMC’s statement regarding the economy and interest rates.
Worldwide equity markets and commodities rose overnight. Gold reached a record high of $1095/oz. US Futures are pointing to a positive opening this morning.
On the US political front the Democrats lost 2 key Governor races. Both New Jersey and Virginia favored the Republican candidates, over the Democrats-who were both supported and campaigned for by President Obama. Republicans will now be the occupants of their statehouses.
Oil:$80.19 Gold:$1089.12Today’s data:
FOMC Rate Decision at 2:15 PM this afternoon.
Have a GREAT DAY & GOOD LUCK
Feds Bullard comments from speech hit newswires
June 30, 2009 by Greg Michalowski · Leave a Comment
- SHORT-TERM GOAL IS AVOID DEFLATION TRAP IN 2009
- EMERGENCY CREDIT PROGRAMS CAN WIND DOWN NATURALLY’
- MOST EMERGENCY CREDIT PROGRAMS MAY END NEXT YEAR
- FED MAY KEEP ZERO RATE LONGER THAN USUAL RULES SUGGEST
- INFLATION EXPECTATIONS MAY RISE WITHOUT EXIT STRATEGY
US Fed’s Plosser Comments
June 2, 2009 by Danish FX · Leave a Comment
Fed’s Plosser says the Fed should not be involved in financing toxic assets that date from the bubble era - FT
- Plosser added that such proposed Fed loans would expose the Fed to credit risk and tie up a sizeable portion of its balance sheet in long-term assets that would be hard to price and liquidate.
Fed’s Fisher on the Wires
April 17, 2009 by Danish FX · Leave a Comment
Fed’s Fisher: Treasuries and USD boosted by Fed actions; Implosion of export markets has made US downturn worse
- Innovative Fed policies will hasten US recovery
- Inflation not a threat to US economy over next couple years, pervasive bias toward lower prices at work
- Eurozone challenges exceed those in US
- Treasury’s debt is tied to US policy; Fed is independent and will not monetize Treasury debt
- US economic data in Q1 is grim, GDP decline likely to be sharp
- Unemployment rate likely to reach 10%
- Note: On 4/14, Fisher said that he saw a strong case in favoring the dollar, based on capital returns and at the same time he noted that he did not expect sharp declines in USD fx rates. Also, on 4/14 Fisher said that the jobless rate could exceed 10% by the end of 2009 and that he expected US Q1 GDP to contract at a “very dismal” rate.
Fed will be buying Agency coupons tomorrow
April 16, 2009 by Greg Michalowski · Leave a Comment
The Fed has announced they will be buying Agency coupon debt tomorrow as they continue to try and keep the rates down so that the spring/summer housing market has low rates to stimulate demand/refinancings. Yesterday Mortgage Applications fell by 11% for the first decline in 5 weeks. This was despite a lowering of the average 30 year mortgage rate to 4.70% from 4.73% the week prior. Note, there was some talk that the Easter/Passover may have been an influence. We will see what next week brings.
Clearly, the Fed/Treasury is doing all it can to keep the flicker of hope in the housing to continue to shine. The problem is employment losses and negative home equity are countering the lower rates, and may keep foreclosures high. This is the risk. Before this happens, it is the intention to lure the new buyers to the market. For those who have the equity/cash to refinance, the low rates will hopefully be a stimulus for spending.
All sit on a knifes edge with the result “too close to call”. Initial Claims data today is an indication of perhaps a slight improvement in the rate of decline in employment. The improvement in the NY Empire Manufacturing and Philly Fed Index are another step in the right direction. However, Building Permits and Housing Starts were not encouraging. Also, the improvement in the economy, if it does ignite, is likely to be very slowe, with unemployment still being an issue.
Fed’s Rosengren Comments
April 15, 2009 by Danish FX · Leave a Comment
Fed’s Rosengren: New financial stability regulator should monitor asset prices and have the power to take action
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