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Bobbys Corner-Open Market-Aug.5.2011

Good Morning:

FX markets are very nervous ahead of this morning’s NFP and employment data.
The consensus is for non Farm Payrolls to be up 85K.  This may not be enough to have the 9.2% unemployment rate fall.

After yesterday’s stock market drop, the markets are close to a panic mode.  Asia and European equity markets were and are being battered also.  Asian bourses were down as much as 4 %, while Europe is currently off about 1%.
The main concern is that any US recovery seems to be a faltering, as US consumers continue to put the brakes on spending.  The stimulus packages that were put into place seem not to have gotten much traction, and the question arises that if there was another round of QE-would it really help?
Europe is also a mess, with their debt problems growing-not fading.  Italy is now on the fore front of the debt issue in the EU.  The ECB continues to pump money into the system, and are busy buying  some sovereign bonds.  It seems that the ECB is focusing their buying to Irish and Portuguese bonds-not extending their bond pruhasing to Italy and Spain at this tim-Confusing isn’t it!

I wish you ar GREAT D