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Foreign Exchange

Bobbys Corner-Open Market-Aug.4.2011

Good Morning:

We start the morning off by noting that both the ECB and Bank of England left their benchmark interest rates unchanged today.
This was highly expected even though the UK economy continues to show signs of  faltering , and the EU has a debt  crisis that is not going away anytime fast.

Bobbys Corner-Open Market-Aug.3.2011

Good Morning:

The Swiss National Bank seems to have had enough of the recent strength of the CHF, and they came out swinging as they cut rates in a surprise move to the marketplace.  The franc fell after the announcement, as the Swiss government is concerned that the strength of the franc will undermine the county’s economic recovery.
Analysts feel that the rise in the CHF will only be temporary-as the franc is used as a refuge in uncertain times.  Until the nervousness in the markets slow, (which there is no sign of in the immediate future), the franc will continue to attract investors. 

Bobbys Corner-Open Market-Aug.2.2011

Good Morning:

With the debt ceiling deadline looming-the US Senate is set to vote on the bill at noon today.  On Monday the House of Representatives voted and passed the bill even though liberal Democrates and conservative tea party members had their seperate idealologies.
The agreement falls short of the savings that both the Republicans and the White House were looking for.
This agreement must get to President Obama’s desk today to eleviate a US default.

Even with this agreement-there is no guarantee that the USA’s AAA rating will remain steady-and we may see a downgrade-as the rating agencies have called for savings of over $4 trillion over 10 years-far more than the $2.4 trillion offered in this package.

Bobbys Corner-Open Market-Aug.1.2011

Good Morning:

With no extra time to spare-Congressional leaders and the White House have agreed in principle to a new Debt-Limit deal.  Leaders will spend the day pushing this bill through their rank and file members.  The Congress expects to get this bill passed today-as the deadline is tomorrow August 2.
The greenback has been soft-even after the debt-limit deal had been announced.

Bobbys Corner-Open Market-July.29.2011

Good Morning:

I am back to writing Bobby’s Corner again.  I have been delayed by some registration and traveling obligations-but I am glad to be back at the writers table.

Bobbys Corner-Open Market-April.26.2011

bob-slade-forex-trading-3-150x200Good Morning:

The USD got knocked back again in overnight trading.   Speculation that the Fed will keep interest rates low to help support the US economy is not dollar positive-and the markets have reacted as such. With Chairman Bernanke expected to keep policy and interest rates steady-USD weakness will continue.

CHF rose as investors continue to worry about sovereign government concerns in both Libya, and Syria-thus causing a rush to the safety of the Swiss Franc.

Bobbys Corner-Open Market-April.21.2011

bob-slade-forex-trading-6-150x200Good Morning:

The USD saw more weakness overnight, posting across the board losses.
The Aussie jumped to a new high as better than expected PPI data and business sentiment reading helped lead the charge.
The Euro rose over 1.4640-but stabilized after IFO data should a slight decline for the 2nd month in a row.
GBP climbed easily  over the 1.6550 handle as UK retail sales printed better than expected.

Bobbys Corner-Open Market-March.24.2011

bob-slade-forex-trading-6-150x200Good Morning:  Portugal’s Prime Minister resigned after his legislators rejected his proposals for austerity measures in the wake of their debt crisis.  The failure to pass the austerity measures have put the country in a dire situation.  It looks like Portugal will need to follow Greece and Ireland and seek an international bailout.  Portugal had already raised taxes and has added deep spending cuts prior to the vote for additional austerity measures. The bailout cost is estimated to be approximately 100 billion euros. 

Bobbys Corner-Open Market-March.18.2011

bob-slade-forex-trading-8-150x200Good Morning:

We have finally come to the end of the week-and what a week it has been-one for the history books!

The G-7 agreed to a joint intervention to curtail the rally in the JPY.  This is the first joint intervention in over a decade.  The nations agreed that “excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability”.  The pressure on the USD/JPY will still remain intense-but this move will at least have a somewhat calming effect on the markets.

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