Euro

Good Morning:

Good Morning;

I have been out of town for the past few days-and the markets have sure changed course.

Good Morning:

Good Morning:

The Euro was stronger overnight as the ECB said it will lend EU banks 131.9 Bil euros for 3 months.  Last year the ECB lent EU banks 442 Bil euros to combat the financial crisis.  These loans are to be repaid tomorrow-which is why the ECB has initiated a new loan program.  The demand for fresh cash was less than expected, which may be a sign that the financial industry may be stronger in the EU than originally expected.

Good Morning:

Cable was the overall winner in overnight trading. Yesterday’s budget statement was well accepted by the markets and general public.  UK Chancellor Osborne stated that the country’s main goal is to cut their debt.   Notes from the last BOE revealed that their was a call for a rise in interest rates by 1 member, but the majority left interest rates unchanged.

On another note the USD/JPY is getting close to the 90.00 level-which is a psychological level that always makes the Japanese authorities uneasy as they see the yen gaining strength.

Good Morning:

It is officially summer (7:28 AM EST) this morning.  I hope all of you enjoy the summer months ahead.

Good Morning:

The Euro traded higher overnight as strong demand for Spanish bonds should help rebuild some confidence for the EU.  The strong demand for Spanish bonds eased concerns that the Spanish government will have a difficult time financing their growing debt issues.

Good Morning;

Good Morning:

With weaker than expected data from Germany (ZEW survey) and the UK (CPI), along with Moody’s downgrade of Greek bonds to virtual junk status-the Euro and GBP held up reasonably well.  Even as the Euro and GBP slumped for a time-they rebounded and now we await data from the US this morning.
Equity market gains may assist the FX markets-especially the Euro-as the gains lessen concerns about Europe’s debt problems and how they will effect global economic growth.