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Bobbys Corner-Open Market-March.23.2011

bob-slade-forex-trading-4-150x200Good Morning:

 FX markets were mostly range bound in overnight trading.  With the ECB still on track for a rate increase in April.  The euro has benefited from the expected rate hike-as interest rate differentials are keeping the euro strong versus the greenback.  The problems in Japan and the Middle East seem not to have a direct impact on Euro Zone industrial demand.  If the ECB anticipates that this is not true-you will most probably see the euro under selling pressure-and any rate hike decisions could be put on hold. 
Portuguese legislators will vote today on new austerity measures for the economy, which is needed to reduce the budget deficit.  The future of Prime Minister Socrates rests in the passage of these austerity measures.

In global news:  Japanese authorities have stated that tap water in Tokyo may not be safe for infants.  Nestle SA-the maker of Pure Life bottled water-which is the largest brand of bottled water in the world saw their stock price jump 1.2% in Zurich trading.

Oil rose as allied forces continue to enforce the no fly zone over Libya.  This is raising concerns that oil exports will remain disrupted for some time to come.

Asian equity markets dropped, and Europe is higher at this time-and US futures are a touch lower.

Oil:$105.45                                                                         Gold:$1434.10  

TIME FOR EST. PRIOR
7:00A.M. MBA MORTGAGE APPLICATIONS 18-Mar -0.70%
10:00A.M. NEW HOME SALES  FEB. 290K 284K
10:00A.M. NEW HOME SALES MoM       FEB. 2.10% -12.60%

HAVE A GREAT DAY & GOOD LUCK