Bobbys Corner-Open Market-March.12.2010

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

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

China’s Industrial Production Weaker YoY

China’s Industrial Production for February came in significantly weaker year over year at +12.8% versus the expectation of +19%, although the YTD release was marginally firmer than expected (20.7% vs. 19.5%.) Producer Prices were also higher than expected, all of which has helped the USD continue its bid this Asian session. On the EUR/USD chart below we see the negative bias against the Euro gradually continue to give the pair lower highs. We will look to see if the trendline resistance shown below can once again hold the pair and whether the mid 1.34 figure will keep on supporting the pair, a break either way could provide a new short-term dynamic for the pair.

Bobbys Corner-Open Market-March.5.2010

Good Morning:

The JPY fell as speculation that the BOJ may step up credit easing measures as the US economy get stronger.

In general the markets were quiet ahead of NFP and the US employment data today.
Greek Prime Minister Papandreou will be meeting with German Chancellor Merkel today-and will be in France on Sunday as he tries to sell the Greek austerity package to his EU allies.  Yesterday’s Greek Bond issue was successful, and hopefully this will keep the debt markets at bay for the time being.

World equity markets and US futures higher.
Looks like gold and oil will end the weak on a high note.

Oil:$80.60                                  Gold:$1133.70

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-March.1.2010

Good Morning:

The GBP slid below $1.50 for the first time in 10 months, as polls show that the Tories have the smallest lead over the Labour Party in more than 2 years-thus any legislation to assist the economy may get stalled in Parliament.
On another note-the JPY fell as investors look for higher-yielding assets.
The Euro continues to be under pressusre as the debt issues that are hurting Greece may (are) spead to other Souhern European countries.

World equity markets rose-and US Futures are pointing to a higher oipening this morning.

Oil:$79.57 Gold:$1112.70

TODAY’S RELEASES
TIME FOR EST PRIOR
8:30A.M. PERSONAL INCOME JAN. 0.40% 0.40%
8:30A.M. PERSONAL SPENDING JAN. 0.40% 0.20%
8:30A.M. PCE DEFLATOR (YoY) JAN. 2.20% 2.10%
8:30A.M. PCE CORE (MoM) JAN. 0.00% 0.10%
8:30A.M. PCE CORE (YoY) JAN. 1.40% 1.50%
10:00A.M.ISM MANUFACTURING FEB. 57.8O 58.4O
10:00A.M.ISM PRICES PAID FEB. 68.1O 70.O
10:00A.M.CONSTRUCTION SPENDING JAN. -0.50% -1.20%

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.26.2010

Good Morning:

The USD and JPY dropped overnight as signs that the global recovery is getting more and more traction, thus increasing demand for higher-yielding assets.
Greece’s debt problems will still put pressure on the Euro, and may dampen demand for EuroZone assets.

World equity markets are higher-and US Futures are lower at this time.

Oil:$78.40                            Gold:$1107.20 

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

As we battle another snow storm in the Northeast-the kids are off from school-enjoy the sled riding.

Fed’s Bullard and Lockhart Statements

Speaking in Memphis, St. Louis Fed President Bullard made the following comments:

• “Everything” depends on data for exit strategy.
• Fed funds rate increase may be delayed until 2011.
• The view that rates will rise later this year is “overblown”.
• Improving economy will help commercial real estate.
• Mixing politics and policy leads to poor results.
• Pre-crisis fed had insufficient access to information.
• Inflation expectations are rising.
• Fed should have direct access to financial information.
• Labor markets are weak, “at best stabilizing”.
• “Economic recovery is on track”.
• “Housing sector is stabilizing”.
• Fed is keeping “close eye” on inflation expectations.
• Fed will carry out exit strategy “in right way”.
• Understands cause for market “nervousness” from budget deficit.
• Discount rate move unrelated to future of main rate.
• Stands by “extended period” language on rates.
• Discount rate move is “part of normalization process”.

The Fed’s Lockhart also made the following comments:

• Inflation expectations are ”quite well anchored”
• Fed is moving along briskly with “regulatory overhaul”.
• Doesn’t see asset sales as “early or first step”.
• Doesn’t want to “put a date” on “extended period”.
• Discount move doesn’t signal tightening.

Bobbys Corner-Open Market-Feb.18.2010

Good Morning:

The greenback rallied overnight as Euro Zone officials fight over the details of any bailout for Greece.  It seems that there is a major rift between EU Finance Ministers in regards to how much, if any, funds should be available to assist Greece with their budget deficit.  Greek bonds fell as  EU regulators are investigating possible use of swaps with banks to conceal the debt problem.
Also helping the USD is speculation that the Federal Reserve may be one of the first major central banks to remove some of the stimulus measures that have been in place.  The speculation is fueled by investors who feel that the US economy is on the road to recovery.

World equity markets are higher, and US Futures are slightly lower at this time.
Commodities are also lower this morning.

Today’s data:

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.17.2010

Good Morning:

The JPY fell as signs that the global recovery is gaining traction, and Greece may not need a bailout made investors look for higher-yielding assets.  Greeks Finance Minister in a meeting with other EU mionisters in Brussels said that “there is no actual need for a bailout”.

World equity markets rose-and US Futures are pointing to a higher opening this morning.  Speculation that data will support that US growth is accelerating-helped equity markets overnight.

Have a GREAT DAY & GOOD LUCK

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