Bobbys Corner-Open Market-Nov.24.2010

Good Morning:

The euro continued to trade lower as the the sovereign debt issues in the EU continue to be a concern for the marketplace.
Standard & Poors lowered Ireland debt rating by 2 steps along with a negative outlook, as the Irish government looks for a “bailout package” from the IMF and EU.  The guesstimate is that the bailout nay reach 85-100 billion euros.

In other sovereign debt news, Portugal is facing its biggest strike in nearly 22 years to protest government austerity plans in the wake of their debt crisis.

On another front-North Korea blamed South Korea for driving them to the “brink of war”, a day after the North blasted artillery at the South.  We will wait and watch what the worlds response is to this military action.

Asian equtiy markets were mixed-European equity markets and US futres are also higher at this time.

HAVE A GREAT DAY & GOOD LUCK
For my friends in the US-have a very Happy Thanksgiving Holiday.

Bobbys Corner-Open Market-Nov.18.2010

Good Morning:

The Euro picked up overnight-as speculation that Ireland will receive a bailout (or aid package if you wish), which will hopefully prevent contagion in the EU’s other sovereign states.  A package for Ireland would most certainly lead to calmer markets, which will be positive for the Euro.
The Fed’s QE2 program which will purchase $75 Bil of US Treasuries per month will hopefully spur employment and inflation in a move to  get the US economy back on solid ground.

World equity markets rose, and US Futures are higher with news  that the IMF  and EU are working on a solution for Ireland’s sovereign debt issue.

Oil:$81.84                                                    Gold:$1353.60

HAVE A GREAT DAY & GOOD LUCK

IMF repeats Chinese Yuan undervalued

Of course, a move higher is what the financial markets need and want – whether it happens is another question.

IMF on the Wires

Comments:

• Caring for weaker financial institutions priority
• Global financial system ‘achilles heel’ of recovery
• Sees over 4 trillion bank debt rollover in next two years
• Some public support still needed for banks
• Governments must be ready to recap, restructure some banks
• European banks more vulnerable to funding shock than U.S.
• Possible need to delay exiting unconventional measures
• Banking risks increased in last six months
• IMF cuts global write down estimates to 2.2 trillion from 2.3 trillion
• Imminent funding pressures on banks.
• Vinal sees sovereign debts stay at unprecedented levels

IMF on the Wires

IMF says Australian Dollar mildly overvalued.

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

IMF on the Newswires

• says Italy’s economy set for ‘gradual recovery’
• says Italy has ‘high public debt’ and ‘low income growth’
• says Italy’s banks weathered crisis ‘relatively well’
• Italian banks may face ‘number of chalenges’ medium term
• board urges Italy to strengthen banks capital
• says Italy recovery to be ‘gradual’ banks face challenges

Bobbys Corner-Open Market-May4,2010

Good Morning:

I am writing from Amman, Jordan where we are attending the 5th Jordan Forex Expo.  The attendance is brisk, and FXDD’s presence in the Middle East is growing.

Now back to the markets:

The Euro continues to be under pressure, even as the bailout package for Greece is reaching final approval.  The EUR/USD pair has hit a session low of 1.3088. The ECB is also under pressure as concerns that the Greek crisis could undermine the Euro becomes a major concern for the marketplace.   Speculation the the Greek bailout will not stop the debt issues facing some EU countries, along with a lack of confidence in Greece’s government are also adding preesure on the single currency.   

The Aussie also sold off after the central bank raised interest rates for the sixth time.  They signaled that the pace of  interst rate increases may slow.

European equity markets and US futures are lower, as data showing Chinese manufacturing has slowed, and the BP oil rig disaster in the gulf may leave resource companies vulnerable.

Metals are lower along with oil.

HAVE A GREAT DAY & GOOD LUCK

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