A none event overnight session greats us this morning.

Some (non-encouraging) comments from Belgian Foreign Minister Reynders kept the markets awake:
1) Greece can’t handle further spending cuts
2) Greeks need to pay their taxes
3) Would be “grave professional error” if central banks and companies not preparing for Greece euro exit

More bad news from Greece:
Tourism fell 15.1% in Q1-2012 according to data from the central bank.
Authorities ask Greek’s to keep their money in the banks-as they are concerned of a run on the banks.
Potential Greek bank run could be contagious throughout the region.

Asian equity markets were mixed-Europe is lower and US Futures are also lower.
Gold, Silver and Oil are all slightly lower. 

Remember that both NY and UK centers are closed on Monday-and markets may be illiquid.

HAVE A GREAT DAY- WEEKEND & GOOD LUCK

Some weak economic data from the Euro Zone kept the single currency under pressure.

German IFO business climate down at 106.9-median forecast was for 109.4
Dutch unemployment moves up to 6.2% from 5.9%
German May flash manufacturing PMI 45.0 down from 46.2-forecast 47
French May flash manufacturing 44.4 down from 46.9-forecast 47
one flash composite PMI 45.9 down from 46.7-lowest read since June 2009

The news in Europe continues to disappoint-and is there any real remedy-certainly not in the short term.

Asian equity markets were mixed.  European equities are all higher-IS Futures are also higher at this time.
Gold, Silver and Oil are all higher. 

HAVE A GREAT DAY & GOOD LUCK

The euro is close to a 21 month low versus the greenback.
With Euro Zone leaders meeting today, the markets are very skeptical that there will be any new ideas to reign in the European crisis.
Italian May consumer confidence falls to 86.5 from 89.0.

Japan’s downgrade was a warning to the rest of the world about growing debt.  With Japan’s public debt growing, and no sound fiscal policy to reign in the problem-Japan’s future is not looking good.
Japan’s public debt is expected to reach over 235% of GDP this year.  This is compared to the US-which is running at 70% of GDP .
This ratio is not sustainable-and with Japan going into it’s 3rd (lost) decade-the world’s 3rd largest economy is clearly in danger of imploding.
With the BOJ’s stimulus measures and continued bond auctions, the country will stay afloat-but the long term may turn very ugly.

World equity markets are lower-as are US Futures.

Oil and Gold are also lower.

HAVE A GREAT DAY & GOOD LUCK

The overnight session started with Fitch Rating;s downgraded Japan.  The downgrade was for Japan’s long term rating-and was moved to A+-with a negative outlook. 

The greenback was higher today-as continued concerns over the euro region supported the move to the safe haven of the USD.

JP Morgan’s losses could exceed $7 billion-according to a report from the UK.

In European news:
Spain’s bank losses could reach 260 bln euros.
Spain sold 2.53 bln euros of 3 & 6 month bills:  They are selling their treasuries-but are paying the price.
3 month bills yield .846%  versus .634%
6 month bills yield 1.737% versus 1.58%
IMF suggests that BOE should cut rate and expand the QE program.

Asian equity markets were higher-as are European and US Futures.
Oil is a touch softer
Gold & Silver are lower.

HAVE A GREAT DAY & GOOD LUCK

As expected-the G8 Summit was anticlimactic-and  produced nothing new.   
The Euro Zone  had lots of issues last week:
New French leader-looks at growth-not austerity
Spain’s budget deficit problems grow wider
Greece-are they or are they not leaving the Euro?

G8 members are showing their continued support for Greece to stay with the Euro.

European leaders are having their own summit meeting this Wednesday-Boy they like to go to meetings!

One of the main discussions will center around the fact that France’s new President, who won the election because he called for growth, is clearly at odds with Germany’s desire to cut spending and put the region on austerity measures,

Asian equity markets were mostly higher-while Europe and US Futures are all in positive territory.
Gold & Silver are lower-Oil is a touch higher.

HAVE A GREAT DAY & GOOD LUCK

The equity markets started the overnight session down 3% throughout the region.
The continued ongoing Greek crisis along with the downgrade of Spanish banks all lead to the drop.

The Euro initially took a beating-EUR/USD traded as low as 1.2641, and then as the market’s soaked in the news-the pair rose to a high of 1.2728.  Quite a comeback by the single currency.

The Euro Zone had a really tough week:
-with no real news or changes in Greece-except talk about the election-which is not till June 17.
-new governments in France and Greece, after May’s election.
-Spanish bank downgrades.

Now all eyes will be on this weekend’s G-8 meeting at Camp David.

Asian equity markets were lower-Europe is mixed-while US Futures are higher.

Oil is lower-Gold is higher today.
Facebook IPO priced at $38/share-let’s see how the markets cooperate. 

HAVE A GREAT DAY- WEEKEND & GOOD LUCK

A fairly quiet session-Especially in Europe due to the Ascension Day holiday.

Spanish auction results helped raise 2.494 bln euros-but they had to pay up for the funds.
April 2016 bond-yield at 5.106% versus 3.374% previously
July 2015 bond yields at 4.876% versus 4.037% previously
January 2015 bond yields at 4.375% versus 2.890% previously

Italian 10 year bond yields touching 6%.

The estimated cost of Greece exiting from the euro is being put at $1 trillion-but this is just an estimate-so I am certain that the real cost will be much higher.

Nerves are taking center stage in the marketplace, as the entire Euro Zone is reeling in bad news, and the rest of the world is very concerned. The US is concerned that the contagion could cross the Atlantic, and those economies in Europe  that are not being so hard hit are always going to be cautious and concerned about their neighbors.

Gold is higher-and Oil is just a bit stronger since NY woke up.

Equity markets are lower-along with US Futures.

HAVE A GREAT DAY & GOOD LUCK

Cable lost some steam after BOE’s King made comments that the UK recovery will be “slow and uncertain”.  With the UK financial sector
exposed to the Euro Zone and their current crisis, there will be continued pressure on their economy.
Inflation in the UK inched higher-while growth in the nation slowed.

The Euro lost steam-and dropped below the 1.27 level in overnight trading.  The continued concerns over Greece, and that Spain will face “astronomical” borrowing cost (according to Rajoy)-there is a risk that the markets may stop lending to the country-which would cause a major credit crisis throughout the region.  These components all lead to the drop in the euro.

Gold is lower-at $1540/oz. Oil is also lower.
Asia equity markets were lower-and Europe is mostly higher except for the FTSE.
Dow Futures are also higher at this time.

HAVE A GREAT DAY & GOOD LUCK

Germany had some positive news today-when German Q1 took the markets by surprise and rose .5% versus the .1% that was expected.
It seems that better than expected exports along with better than expected consumer spending kept the data positive.
The German data helped keep Euro Zone Q1 GDP flat-as opposed to a negative number.
Italian preliminary Q1 GDP was -.8%-higher than the -.6% expected.
Dutch Q1 GDP -.2%-better than the -.3% that was expected.

After yesterday’s downgrade of 26 Italian banks by Moody’s-the markets  and rating agencies will be looking at the Spanish and the rest of Europe’s banking sector with a fine tooth comb, not that they haven’t been.

US Retail Sales rise .1%-as expected.
US April CPI +2.3%-as expected.

Dow Futres are positive-as are world equity markets.
Oil is higher too.

HAVE A GREAT DAY & GOOD LUCK

I see that the trend has stayed one sided since I was last in the USA- over 2 weeks ago.

I have been across North America, Saudi Arabia,Qatar,Jordan with a quick stop in Egypt-to see our clients and IBs throughout the region.

Risk off- as the markets are concerned over Greece-with Spain not far behind-and worries over the Chinese economy, and the about future growth of the country is adding  jitters to the markets.

Spanish German 10 year government bond spreads increased to a record 484 bps from 449 bps first thing this morning.
Italy also sold 3.5 billion euros of 3 year notes at 3.91%,  European sovereign bonds are selling-just at higher yields.

Euro is lower
Gold and metals are lower
WTI & Brent are lower
10 year US treasury yields are lower 
Equities are lower too. 

Let’s see what today brings:

HAVE A GREAT DAY & GOOD LUCK

Friday, May 11th 2012 7:30pm-9:00pm – FXDD will host a welcome to Masters Live Preview Event with speakers James Chen, Greg Michalowski, Shawn Powell, Robert McKeon, Tom O’Reilly and Anh Nguyen. The Preview will be held in the same hotel as the Saturday event from 7:30pm-9:00pm. The event will showcase the simplicity of trading with FXDD, how to open a trading account, basics of Forex, highlighting what will be taught by James Chen and Greg Michalowski on Saturday and will also feature a special promotion for new traders.

Saturday May 12, 2012 9:00am-5:00pm – Get your Forex trading in shape before it’s too late. In this unique workshop you will be able to learn from two highly respected industry professionals with years of financial market and Forex trading experience. During the sessions, you will be taken on a detailed journey based on Greg Michalowski and James Chen’s own trading methodologies and strategies.

Special topics Included in your program are:

· How to approach trading the Forex market
· What trading tools to use and why
· How best to define risk, limit risk, and accept risk
· How to better control your fear so you can trade with confidence
· How to enter, manage and exit positions effectively
· How to get on the trends, and stay on the trends.

You will also get a free gift bag, with full color workbook so you can follow along. Held live at: The Marriott West Loop Hotel, Houston Texas. If you need more information you can contact jboyd@fxdd.com or call +1.212.266.0715

The UK had some disappointing news this morning:

UK Q1 GDP -.2%.  Medium forecasts were for .1%
So UK now in a  technical recession and cable collapses to  1.6090 from around 1.6140

Spanish 10 year bond yields are down to 5.825%.

German 30 year Bunds were sold at 2.41% (down from 2.62%).
The yield was better but the take up was lower than expected. 
They sold 2.405 bin euros out of a total targeted amount of 3 bln euros.
Germany keeps it’s 2012 GDP forecast at +.7%-with +1.6% in 2013.

Oil is now at $104.31/bbl.

Asian equity markets were mostly higher.  Europe is higher-as are US Futures.

HAVE A GREAT DAY & GOOD LUCK