A Jobs Jamboree Friday!
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In This Issue.

* ADP jobs report disappoints.

* What will the BLS do today?.

* U.S. 10-year Treasury hits 2.97%...

* China moves into TOP 10! .

And, Now, Today's Pfennig For Your Thoughts!

A Jobs Jamboree Friday!

Good day. And a Happy Friday to one and all! For those of you who read the Pfennig at the Pfennig Blog site (www.dailypfennig.com) you get to be greeted each Friday with my mug shot. For those that don't go to the blog site to read it, just image an Adonis looking young man.. HAHAHAHAHAHAHA! Yeah, right, that's the ticket! I've just cracked myself up and I'm having difficulty calming back down!

Well, today is a Jobs Jamboree Friday. The last Jobs report before the Fed meets in less than two weeks. So, needless to say, but I will anyway, this Jobs report is HUGE according to the markets. Personally, I look at the Jobs Jamboree as a useless piece of. you know what. The only real stuff in the report is the Avg. Hourly Earnings and Avg Weekly Hours data. I told you yesterday that the ADP report makes more sense to me, and eventually, the markets will hold my point of view too, for they too will have grown tired of being lied to by the BLS.

Speaking of the ADP report. It printed yesterday, and was not as strong as the forecasters had pegged it, coming in at +176,000 jobs created in August, VS the consensus of 184,000. So, the report was disappointing for August, but that's not all. June and July's numbers were revised downward. Not by huge amounts, but psychologically 198,000 just doesn't have the same bell ringing sound as 200,000. So, what does the ADP Jobs report tell us? Well, it tells me, and hopefully you see it as well, that job creation continues to go along at a much slower pace than any before during an economic recovery.

But what will the BLS say job creation was in August? The consensus going into the report this morning is for 180,000 jobs to have been created in August. That's pretty much in line with the ADP report figure of 176,000.. The Unemployment Rate should remain steady Eddie at 7.4%.. What will the markets think of this report and the numbers? I wish I could tell you. But it will take some knucklehead with an ounce of brains to make some comment that the markets pick up on and the next thing you know, it's the trading idea of the day. For my two cents, I would think that the BLS will not settle for 180,000, and goose the number upward toward 190,000, which on the face value will tickle the markets to thinking this is a good report. And then they'll be torn between two lovers. feeling like a fool, Loving both of you is breaking all of the rules.

You see, the markets will get all lathered up thinking about a strong jobs number, but then realize that the strong jobs number gives the Fed Heads another arrow in their Quantitative Easing tapering quiver. Now, they want to go one way, but realize what's ahead. Being torn between two lovers for the markets is tough.. Couldn't really blame you if you turned and walked away. But with everything I feel inside, I'm asking you to stay.

Silly song! Well, the G-20 meeting in St. Petersburg, Russia, began yesterday, and so far not much has come from the meeting. In Australia, the folks there go to the polls tomorrow, and from all that I read, and hear, it sounds like a new Gov't is very likely, with the only question being the size of the new majority. I would think that unless there's a spanner thrown in the works, that this would all be Aussie dollar (A$) positive.

The euro is struggling to hold on to the 1.31 handle this morning, losing almost a full cent yesterday when it looked like the single unit was going to hold 1.32 easily. But NOOOOOOO! There's a story on the Bloomberg this morning that talks about how the euro is gaining favor as investors' perceptions of turmoil in financial markets rises. Hedge Funds and other large speculators are the most bullish on the euro since 2011 and for the first time since November 2008, the 90-day correlation between changes in the euro and a Citigroup Inc. index of bond and swaps risk has turned positive.

These things are all positive for the euro. And it plays well with my telling you over and over again that this dance is gonna be a drag. No wait! That's not what I'm trying to say! I'm trying to say that I've said over and over again, how the euro might be beaten and beleaguered right now, but it's still around 1.30 VS the dollar. What does that tell you what the markets think of the dollar?

In addition, another thing I keep telling you is that at least the Eurozone is attempting to do something about their parade down deficit street, that took place for about 10 years. The Eurozone leaders might find out that what they're attempting won't work, and then go back to the drawing board, but at LEAST THEY'RE TRYING TO DEAL WITH THEIR DEBT!

The currencies are drifting this morning, as no one wants to make a decisive call either way on the Jobs Jamboree. There was no chest pounding by European Central Bank (ECB) President, Draghi, yesterday, and kept things grounded by saying that, "the risks for the euro-area growth remain on the downside." These words are what got the euro on the slippery slope yesterday. Draghi proving once again that you're damned if you do, and damned if you don't..

I always like to find stories about Singapore.. They are as not as common to find like stories on the U.S. or Eurozone, or even Japan. I was writing my commentary that goes with every currency for our website research pages, and the legal people questioned where I had gotten the claim that I made that Singapore has announced plans to double the capacity of their airport, build a new waterfront, and other things that will all be good for the economy. They thought I made that up! It took me 20 seconds to find the story on the internet. See what I have to go through to inform people of things?

Well. in case you're reading today my legal beagle friends in Jacksonville, this was in the Bloomberg today Sept 6, 2013. "Singapore Overtakes Japan As Asia's To Foreign Exchange Hub". So, now you know why China thinks so highly of Singapore that they announced that Singapore would be the next offshore depository for their currency. (Hong Kong, of course was 1st).

Speaking of China. I was interviewed by a Wall Street Journal (WSJ) reporter yesterday about China, and the story that came out yesterday about how the Chinese renminbi / yuan had entered the TOP 10 most-actively traded currencies. The interviewer wasn't much interested in what I had to say, about what we were seeing on our desk renminbi trading wise. But, it is what it is, right? I told her that we had actually been seeing more people sell their renminbi positions than buy trades. I said that renminbi held here in the U.S. can't pay any interest, because the cost of holding it eats away the interest, and as long as interest rates here in the U.S. were near zero, holders of renminbi didn't care if the currency paid no interest. But rates here in the U.S. are inching up. I also told her that for the core people that owned renminbi, did so as a diversification tool, and therefore would continue to hold it. But I guess all that wasn't sexy enough.

But, the real story is how the renminbi / yuan is now #9 in the TOP 10 most actively traded currencies. 10 years ago, when we first offered renminbi deposits, there weren't but a handful of dealers that even would mess with renminbi. But I think that the trading of renminbi goes hand in hand with the Chinese Gov't's plans to gain a wider distribution of the currency. I've been at the forefront of talking about China's plans for their currency, and it's pretty cool to see this stuff all beginning to take place.

The swap news I told you about yesterday that was the first volley by new Reserve Bank of India (RBI) Gov. Rajan, was really positive for the rupee, which has now rallied for 3 consecutive days. But don't think for one minute that the rupee is out of the woods here folks. The Current Account Deficit is still too high (4.8% of GDP), inflation is too high, and it will take some real structural changes to really stabilize the rupee. But they will come, I do believe.

Canada will also print a jobs report today for August. Canada has seen some real strong flip-flopping on job creation in recent months, but one would think that with the hiring of workers to help with the cleanup of the Alberta floods, that August would have been a strong month of job creation. That should be Canadian dollar / loonie positive today.

Gold got whacked again yesterday, with another $25 coming off its value at one point in the day. What? The price manipulators must be back from vacation. There were gone for August, and the shiny metal recovered nicely. Of course the U.S. Treasury yield hitting 2.97% isn't helping Gold any. But again, who would buy a Treasury at the current yield when it appears that yields will continue to rise, thus putting your purchase at a loss? I don't get it. never will..

Before I head to the Big Finish. I saw a comment by Jay Leno that just cracked me up, and plays well with my harping about printing dollars (yes, I know we don't really print much any longer it's all keystrokes on a computer, but that doesn't play well with this joke. )

About $30 Million in $100 bills had to be destroyed because of a printing problem. Isn't that unbelievable? The thing we know how to do right in this country is print money, and we screw that up? - Jay Leno.

For What It's Worth. I found this on moneynews.com and is a head scratcher, given the job creation that has been reported the past couple of months. But it is what it is. so here you go.

"The number of planned layoffs at U.S. firms surged in August to their highest in half a year, with industrial goods manufacturers the hardest hit, a report on Thursday showed.

Employers announced 50,462 layoffs last month, up 33.8 percent from 37,701 in July, according to the report from consultants Challenger, Gray & Christmas, Inc.

The August job cuts were up 57 percent from the same time a year ago.

For 2013 so far, employers have announced 347,095 job losses, close to the 352,185 that were seen in the first eight months of last year."

Chuck again. OK, so where does the BLS record all this? Or do they even care? It's probably the latter, folks. sad but true..

To recap. The currencies are drifting this morning, as no one wants to make a decisive move ahead of the Jobs Jamboree that will print today. The ADP jobs report was a bit disappointing along with its last two months worth of downward revisions. The markets are torn between two lovers. China moves into TOP 10 of most actively traded currencies!

Currencies today 9/6/13. American Style: A$ .9170, kiwi .7950, C$ .9575, euro 1.3120, sterling 1.5590, Swiss $1.06, . European Style: rand 10.1735, krone 6.1025, SEK 6.6550, forint 229.30, zloty 3.2745, koruna 19.6310, RUB 33.42, yen 99.70, sing 1.2785, HKD 7.7555, INR 65.23, China 6.1728, pesos 13.33, BRL 2.3235, Dollar Index 82.53, Oil $108.65, 10-year 2.97%, Silver $23.26, Platinum $1,483.30, Palladium $691.43, and Gold. $1,370.84. and it's Friday, so here's the link for you to take a peek at the U.S. Debt Clock, click here: http://www.usdebtclock.org/index.html

That's it for today. Cardinals come limping home from a disastrous road trip. There's still time left in the season, if they can find their lost mojo at home. A GREAT BIG CONGRATULATIONS to my son, Alex, who was not only named to the Academic All-American Water Polo Team, but he was named an OUTSTANDING Academic All-American recipient! WOW! Quite an honor! I always knew he was smart, much smarter than me, but this kind of puts it in focus for me. I guess all that staying up late at night and studying is paying off for him! Now, if he can get a college to pay for most of his college education, that would be great! The NFL season got off to an exciting start last night with Peyton Manning throwing 7 touchdown passes in the game! WOW! I wish I had picked him as my quarterback for my fantasy football team now! HA! Well, it's a Fantastico Friday, and not a day too soon, given all the bull dookie I've had to deal with this week. So, let's go out and have some fun this weekend, and start it off with a Fantastico Friday!

Chuck Butler
President
EverBank World Markets
1-800-926-4922
1-314-647-3837





Posted 09-06-2013 5:55 PM by Chuck Butler
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