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European Markets October 27th 2008 - Asian Markets Fall, but Yen Rises

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The asian market is taking a tumble today, and the Japanese Currency is rising on the dollar. Matter in fact, a number that hasn’t been touched since 1995. A one week drop from 102.3 to 93 yen per dollar is quite a drastic drop, and the concern here, is the importing of goods to the US from Japan. The prices will eventually inflate because of this.

Crude, is completely going the other way. Taking a shot below $64 and spiraling even lower, Gas is once again becoming affordable, and it is becoming easier to look at SUV’s once again! lol not that I am going to get one anytime soon. I was checking gas prices and the Wawa (7-11 Type convenience store) has the cheap stuff for $2.25 a gallon. Amazing.

The Euro is headed below 1.25 against the dollar in overnight trading. All three major markets, and the indices are pointing in range between a 3.5-5 percent decline.

So, how are the markets looking for the european market?

A busy day only for the european market, but think about the world markets and the credit scenario when you think about the news. We have a great deal of issues that should be weighed when looking at forex news matters.

Europe (Times in GMT)
0900 - Germany IFO Business Climate
0900 - M3 Money Supplies year to year
0900 - Private Loans year to year
1355 - Jean Claude Trichet Speaks at the Perspectivas KPMG forum, in Madrid Spain.

TRADE ON!!!! Make some pips!!!

Tom Howell
GoForexTrade.com

Welcome Back! Oil sees itself above $100, Paulson wants the bailout NOW!

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Hey there folks! Welcome back from the weekend. Coming back from a weekend after a week of insane proportions, Hopefully we can launch this trading week in stocks and forex in a more positive territory.

Yeah, Treasury Secretary Henri/Hank, whateveryouwantocallhim Paulson is urging that the $700 Billion bailout package goes quickly through the legislational process and ratified quickly to help stave off the failure of investment banks that have been bitten hard by the subprime mortgage crisis.

Jean Claude Trichet, Europe’s central bank head had some words to say earlier and will have some more later on today. What has been said recently was that Trichet lauds the Slovak State’s entry into the Eurozone currency and says the move is all for the better.

England also had some numbers from Rightmove, a leading real estate agent orgnanization similar to the USA’s REALTOR organization. Rightmove reported that there was a one percent decline in housing prices.

Japan had a couple of things that went into the newswires. Firstly the Bank of Japan had their monthly minutes released, stating that they are expressly concerned about the health of the US economy and Banking system. Also they have mentioned that the BOJ has injected in the neighborhood of a few trillion yen into the economy.

The All Industries Index in Japan had increased .8%, right on the money as forecasters predicted.

Australia released new car sales data, and sadly to report a 3.5% decline in sales.

After Jean Claude Trichet speaks once again, England’s John Gieve from the Monetary Policy Committee will have a few choice words on the banks, economy, and whatever else is conversation fodder at the time.

Canada has Retail Sales Numbers coming out today, a Core focused data release and a general sales data release.

Japan, for the Asian Session will take the day off for Tuesday, in celebration of Autumnal Equinox Day: Only if we americans celebrated the changing of the seasons.

Then WestPac will release data for New Zealand’s Consumer Confidence.

See you back here tomorrow! The Euro has a ton of news reports and such and we will be here to shove them right down your gullet!

For now, TRADE ON!!!!

Tom Howell

GoForexTrade.com

Weekend Cap: GoForexTrade.com

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Hello! How is everybody’s weekend going? Having some serious fun? Going to a BBQ or having a night out on the town, looking back at the awesome week you had making money on the forex market.

There is a few major news issues that came up through the week.

1. Oil: This week, we have seen Crude Oil take a reprise of climbing after last week’s $10+ drop on the New York Mercantile Exchange. Oil has now seen a new record at $147.00 due to supply issues in the US reserves, and the Constant threat of War in Iran, and fact being they are a big oil producer in the Middle East, it makes for quite an uncomfortable situation at home.

Meanwhile, Russia is building rigs to start exploring Oil reserves in the Arctic Ocean. The Arctic Ocean region is believed to hold over 100 Billion Barrels of Crude Oil. Could we start another Cold War over OIL?

2. Big Banks Gone Wild, Part 2: Recently, the US Government had recently shut down IndyMAC bank after investors had pulled out, leaving the second largest funding source cleaned out. IndyMac primarily funded subprime mortgages and No Doc Mortgages, which did not require income documentation in order to write mortgage paper. This comes into light after the Government also took over the two main secondary market funding sources, Fannie Mae and Freddie Mac.

3. Europe’s Inflation Worries: Late last week, ECB President Jean Claude Trichet had stated his fears over the looming inflation issue. A larger consensus which was recently polled over the issue, also reiterated the Central Bank’s President, and having no confidence in inflation stabilizing and that inflation was overly inevitable. In response to the Inflation issue, the European Central Bank took a precautionary measure and elevated the Bank Rate from 4% to 4.25. I wouldn’t be surprised if the rate goes higher. Think about this when it comes to bank rates.

Tom’s Hypothetical Question of the week:
If you were a head of a country or federal banking institution who is controlling the monetary policy, you would have to make a choice between two scary fates: Would you have to screw over millions of homeowners who bought heart hard and not mind heavy and went into Adjustable Rate Mortgages and have them risk foreclosure?

Or otherwise everything would rise in cost faster than your head can spin, inflation goes at an insane pace, and you would have to answer for millions of families, regardless of income bracket are in financial trouble, and are struggling to feed their kids. Imagine having a family that drives BMW’s and Mercedes-Benz’s STRUGGLING to feed their kids. And it gets even worse down the income ladder.

Shoot a comment and let me know what you think about that one! A very real and scary reality for sure.

I will conclude the weekend cap, with a Thank you for visiting my Forex Site. If you have any questions or comments, Please put them on site! I would be more than happy to answer them!!!

REST ON!!! Get ready for Sunday night! Another trading week waits!!!
Thomas Howell
Editor
GoForexTrade.com

P.S. Take a quick minute and check out some awesome specials from Brain TonIQ, our official drink here at GoForexTrade.com. Click here to see what Brain TonIQ is all about! No Caffeine, No Fat, No B.S!!!

US Market Session: July 10th 2008 GoForexTrade.com

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Good morning traders! How is your day so far?

Today in the US market Session, we are going to see a few heavy hitters in the news pipe today. First, we will recap the news from the European Market Session.

French Industrial Production had slid 2.6%, sliding past the consensus data of -.5%.

We also got word from the European Central Bank’s Bulletin, quoting that the recent rate hike from 4% to 4.25% will help stabilize prices in the medium-term. They will now expect Inflation to stay under control for quite some time, and despite E-13 growth being a bit slowed for the second quarter, the trend for the long term, will see some modest growth.

We also got a number for Italy’s Industrial Production. We got a decline of 1.4% over last month’s slight increase of .4%.

We finally received numbers from Halifax on their Home Price Index. Home prices have decreased 2% from last month. I would think OUCH because a mere 2% can cut into how much you can get from your home. perhaps you had a $300,000 home, and all of a sudden, you had to come down 2% to try to keep your house in the competition for homes being sold in your neighborhood. I know your realtor and you wouldn’t be happy in taking the price cut, But that is just not happening in just the US or UK, but across the board!

Leaving my rant on housing prices, We are still waiting for a Bank Rate statement from England’s Monetary Policy Committee. We will also get a late night Euro Podium Piece of Jean Claude Trichet, the President of the ECB as well.

For the US Market, WE will have a few things on the agenda! First we will have unemployment claims, the Ben Bernanke will testify along bedfellow and Treasury Head Henry Paulson at the House Of Representatives Committee on Financial Services. Let’s hear what Uncle Ben has to say!!!

Then we will get a number on Natural Gas Storage.

Have a great day! and TRADE ON!!!!

Thomas Howell
GoForexTrade.com

European Market Open: 7/10/08 GoForexTrade.com

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Good morning and welcome to another trading day! Are you ready to win???

Let’s first report the results of the asian market news, shall we?

First, we had New Zealand with the Business NZ Manufacturing Index. The numbers came up a bit short at 45.7 compared to the previous time around at 47.9.

Japan had a pair of number releases as well. Their CGPI had done a nice job at 5.6% compared to consensus’ bet of 5.2%, the result this time last year was 4.8%.

Also up was the Current Account. The Current Account did nicely, well over expectation at 2.03 Trillion! NICE WORK!

In Australia, we had their jobs report. The employment change actually did quite well, boosting to 29.8K more jobs then previously and the unemployment rate managed to notch down to 4.2% as well. GOOD STUFF!!! Let’s see the US pull that one off! lol.

For today’s european market session, here is the news:

645 GMT
France will release their monthly industrial production numbers.

800 GMT
A Trifecta of numbers going public here. First we will have a bulletin from the European Central Bank, Then Italy’s Industrial Production Numbers will come forward.

Finally, if they show up, we will have England’s Halifax House Price Index, which is released Monthly.

Two more things from England to wrap the major news out of the session: The Official Bank Rate will be released and a statement from the Monetary Policy Committee.

1745 GMT, Do not forget we have ECB President Jean Claude Trichet speaking as well. His podium piece will be at the Euro’s 10th anniversary Celebration.

Folks, see you later on for the US Market Session news.

TRADE ON!!!

US Market: 7/9/08 GoForexTrade.com

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How are you doing during this trading session so far? Making any serious pips?

How about we do a quick recap of all things in the previous european market and we will then talk about the US market.

Europe:
Germany’s Trade Balance was only at 14.4 Billion, not at the 17.4 Billion Expectation. More beemers and Benz’s please!!!

France’s Trade Balance also suffered at -4.7 Billion. And then Jean Trichet Spoke had mentioned that an inflation of 4 percent was worrying him and that there is a possibility that the inflation will not ease.

England:
Trade Balance came out to -7.5 Billion, which is unchanged compared to previous numbers.
We also got a number from the BRC regarding price changes. Prices for Goods increased 2.5% from last year.

US MARKET!!!

In Canada, Housing Starts was right on the nose with the consensus, but declined 10K from previous numbers.

The only number today from the US market but very grim indeed, was the Crude Oil Inventories. Despite the deficit of 5.9 Million Barrels of Crude, there was only a modest increase in the NYMEX. The price of Crude Oil is $136.21.

See you for the Asian Market Report!

TRADE ON!!!!
Thomas Howell
GoForexTrade.com

Europe Market Open: 7/9/08 GoForexTrade.com

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Good morning my fellow European Traders! Ready for an awesome day making some serious pippage?

Let’s get right to the news!

Oil: The sweet stuff has taken a major drop in price over the last couple to $136.38 on the Electronic New York Mercantile Exchange. SUV Owners REJOICE!!!

England’s Consumer Confidence fell short of expectation at 63, and below the previous number of 69. The consensus was betting at 65.

Over in Japan, we got a positive word on Core Machinery Orders. 10.4% INCREASE, nearly doubling the production increase from last month, and the expectation was a tiny 1.1%. NICE!

In Australia, the Westpac Melbourne Institute unleashed their Consumer Sentiment number at -6.7%, which is unfortunately, worse than last month’s number at -5.6%. Keep your chin up folks and your dreams high!

Also we got some bad news from down under on Home Loans. Home loans had declined -7.9% from last month’s -4.2%. They were only expectating -2%, but with how the subprime credit crisis, and now that credit requirements are ever increasing, proves that now you cannot get a dollar loaned to you anymore if your credit is even ok. That wasn’t a shock to me at all!

So, What is going on with the european market? Plenty! Hopefully not as depressing as most of the Asian market was….

right at 600 GMT, we have another statement from Japan regarding Machine Tool Orders. Yes, even Wrenches and Screwdrivers have their own Indicator.

At the same time we will see Germany release their numbers on Trade Balance. Of course the consensus is taking the high road to expect a magic number of 17.4 Billion. Now only if the US could learn a thing or two from this. (But then again, doesn’t this country export awesome Beer, and then Beemers, Benzs, and Volkswagens too! DAMN! That is why their Trade Balance rocks!!!) NEXT TOPIC!!

45 minutes later we will see the French with their Trade Balance as well. Unfortunately this fine country of Wines, Cheeses, Fine Cooking, Stereolab, and Fine Marques such as Renault, Nissan, Peugeot and Citroen is looking at an sour expectation of -3.9 Billion.

And of course Jean Claude Trichet, the European Central Bank President has to step in and get a few words out as well. This time, Jean will be at a plenary Session of the EU Parliament in Strasbourg. Jean will present the Annual Report for 2007 there. Maybe some historical data and maybe some monetary policy to get our Forex News Junkies a bit to chew on please?

Then to finish out the major news events, England will have a trio of numbers coming out. at 1830 GMT we start with the Halifax Housing Price Index. We are looking at a decline of 1% for the magic number. Trade Balance, which compared to France’s Expectation, this one is looking to have a awfully grum day at -7.4 Billion. Then to finish out the England block, BRC’s Shop Price Index, which compares to previous year prices at any one of your local British Retail Consortium stores!

That is the european report. See you in the morning, and TRADE ON!!!!

Thomas Howell
editor
GoForexTrade.com