Forex Market Updates & Commentary

US Pending Home Sales Data Surges
Bobys Corner-Open Market-March.28.2011
Personal Spending Rises, PCE Data Same as Survey
Personal Income, Spending & PCE Data Due at 8:30AM
Sterling falls as BOE’s Sentance says rates need to be raised “sooner rather than later”.
IFM says SNB should start raising rates over coming months
S&P downgrades Portuguese banks with long term ratings still on watch
Chinese central bank issues 1Q monetary policy report
AUD appreciates to new all-time high of 1.03072 against the USD.
Sterling lower in recent trade
3-28 Economic Calender

Posted: 28 Mar 2011 07:01 AM PDT

Bobys Corner-Open Market-March.28.2011

Posted: 28 Mar 2011 05:45 AM PDT

Good Morning:

We start the week with the USD a bit stronger-ahead of data on US Consumer Spending. Comments by Fed official Bullard stated that the Fed “may consider scaling back on monetary stimulus”. Consumer spending constitutes about 70 percent of the US economy-analysts are expecting an increase of .5 to .6 percent. (actual came in at .7%).
The Swiss franc (CHF) has become the best performing major currency this year. With the US Fed flooding the financial markets with USD, and the G7 working together through intervention to weaken the Yen-the CHF has also become the safe-haven currency of choice.
Switzerland has the 19th largest economy in the world, and it is the sixth most traded currency according to the Bank for International Settlements.

Asian equity markets traded lower, and European equity markets are higher-and US Futures are also higher.

Oil:$104.01 Gold:$1413.20

TIME		FOR	EST.	PRIOR
8:30A.M.	PCE CORE MoM	FEB.	0.20%	0.10%
8:30A.M.	PERSONAL SPENDING	FEB.	0.60%	0.20%
8:30A.M.	PCE CORE YoY	FEB.	0.90%	0.80%
8:30A.M.	PCE DEFLATOR YoY	FEB.	1.60%	1.20%
8:30A.M.	PERSONAL INCOME	FEB.	0.40%	1.00%
10:00A.M.	PENDING HOME SLAES MoM	FEB.	0.90%	-2.80%
10:00A.M.	PENDING HOME SLAES YoY	FEB.		-4.40%
10:30A.M.	DALLAS FED MANF. ACTIVITY	MAR.	16.8O	17.5O

HAVE A GREAT DAY & GOOD LUCK

Personal Spending Rises, PCE Data Same as Survey

Posted: 28 Mar 2011 05:33 AM PDT

Personal Income: Survey: 0.4% Actual: 0.3% Prior: 1.0% Revised: 1.2%

Feb vs. Jan
Personal Income: 0.3% vs 1.2%
Compensation: 0.3% vs 0.4%
Wage & Salary: 0.3% vs 0.3%
Disposable Inc: 0.3% vs 0.8%

Personal Spending: Survey: 0.5% Actual: 0.7% Prior: 0.2%

PCE Core(MoM): Survey: 0.2% Actual: 0.2% Prior: 0.1%

PCE Core(YoY): Survey: 0.9% Actual: 0.9% Prior: 0.8%

PCE Deflator: Survey: 1.6% Actual: 1.6% Prior: 1.2%

Personal Income, Spending & PCE Data Due at 8:30AM

Posted: 28 Mar 2011 04:46 AM PDT

Sterling falls as BOE’s Sentance says rates need to be raised “sooner rather than later”.

Posted: 28 Mar 2011 02:33 AM PDT

IFM says SNB should start raising rates over coming months

Posted: 28 Mar 2011 02:30 AM PDT

Swiss growth to remain broad based.
SNB should start raising rates in near term.
Swiss inflation expectations are well anchored.
Current benchmark rate is “unsustainable” over the medium term.
FX interventions should only counter ‘disorderly” moves.
SNB should give priority to boosting capital.
Should preserve “sound fiscal policy”.

S&P downgrades Portuguese banks with long term ratings still on watch

Posted: 28 Mar 2011 02:03 AM PDT

Chinese central bank issues 1Q monetary policy report

Posted: 28 Mar 2011 01:11 AM PDT

To focus on stabilizing overall price levels.
To maintain reasonable overall money supply.
Will use multiple monetary policy tools.
Emphasizes the need to stabilize overall price levels.
Money supply and credit growth is moving in expected direction.
Global economic recovery is not solid enough.
Reiterates controls on lending to certain industries.
Will increase credit support to targeted areas; reiterates controls on lending to certain industries.
Reaffirms Yuan to be basically stable at a reasonable level.

AUD appreciates to new all-time high of 1.03072 against the USD.

Posted: 28 Mar 2011 12:46 AM PDT

Sterling lower in recent trade

Posted: 28 Mar 2011 12:26 AM PDT

Sterling is trading lower as U.K. 10 years open little changed at 3.62% and Euro equity markets open lower. Seen below the GBP/USD had been knocking around between 1.5999 and 1.6024 during the new trading day until it made a stern move through the 1.5999 level. Currently the pair is trading around the 1.5976 level; old lows from mid-February.

3-28-hourly