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Bobbys Corner-Open Market-Aug.18.2011

Good Morning:

CHF softened in overnight trading versus the USD and EUR, as speculation that the Swiss National Bank will institute further measures to slow their rising currency.
The USD and JPY saw additional strength prior to this morning’s US data on inflation.  Market participants are expecting the data to show that inflation is not enough of a factor to have the Fed initiate Q3, or 4 or 5- whatever you want to call it.

The data is out-jobless claims rose more than expected this week-and Consumer Price Index (CPI-which is a measure of inflation on the consumer level), was higher than expected too.  USD stays firm.

Worldwide equity markets dropped, oil is lower-but Gold is higher once again.

The European debt crisis, along with the US downgrade, and continued fears of a double dip recession have taken a toll on stock indexes around the world, and has eroded consumer confidence.

News that the US Fed is keeping a close eye on European Bank’s US operations to be certain that the European debt crisis does not spill into the US banking system is welcome news.  I always thought that the Fed was  responsible to monitor the operations of any bank on US soil-OH they are!