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  • Consumer Confidence Tumbles...

    In This Issue..

    * Currencies range trade
    * Aussie CPI prints soft...
    * RBNZ to hike rates tonight...
    * Oil drop pushes loonies lower...

    Good day... And a Wonderful Wednesday to you! I'm writing from home again this morning, as I have to deal with my car again. They told me it was fixed, I drove it about 10 miles to find out it wasn't! UGH! I must have the guy that failed 'car repairs' 10 times before passing...

    OK... The currency action yesterday was, while range traded, up and down, and all around. Yesterday morning I told you that the euro had broken above 1.30, and I would check it to see how long it remained there... Well, this time it was more than 10 minutes, and the euro rose to 1.3040... But then the rug was pulled from under the single unit, and it was back below 1.30 it went... In fact, it fell to just above 1.29, before then turning around once again and heading higher, eventually ending the day at 1.30....
  • US housing starts suffer…

    In This Issue..

    * Housing starts suffer...
    * Stressful times in Europe...
    * Aussie dollar moves higher...
    * Canada to raise rates...

    The news which drove the markets yesterday was no big surprise for the desk. Homebuilder confidence here in the US dropped to the lowest level since April 2009 as the homebuyer credits expired. Today we will get additional data on the housing market which is expected to show US housing starts continue to fall while foreclosures climb. While prices steadied over the past couple of months there is still a backlog of homes facing foreclosure which will equate to a very slow recovery for the housing markets. And in the US, as the housing goes so does the economy; so the data is not a good sign for our nascent recovery....
  • Aussie Job Creation Soars Again!

    In This Issue..

    * Currencies rally on Wednesday...
    * And hold on to gains overnight!
    * Loonies outperform on the day...
    * More 'an inconvenient debt'...

    Good day... And a Tub Thumpin' Thursday to you! It sure has been a Tub Thumpin' Thursday so far, as the Asian and European markets are hopping, and in Australia, the jobs just keep coming! All that and more on this Tub Thumpin' Thursday, that, as our little Christine would tell me is 'my Friday'!

    OK... Front and Center this morning, yesterday I told you, well, let's just go to the archives and see what I told you word for word... Pfennig 7/7/10: 'Today, we'll see the latest labor report from Australia. In recent months, the jobs data has consistently surprised to the upside each month, so it's not like going out on a limb to say that I expect the job creation to be better than the +15,000 that's forecast.'...
  • Gold Falls Below $1,200...

    In This Issue..

    * A Risk Off day...
    * Currencies rally on Tuesday...
    * Chinese bank has strong IPO...
    * Kicking the can down the street...

    Good day... And a Wonderful Wednesday to you! It was a Terrific Tuesday for the currencies VS the dollar, it was not a Terrific Tuesday for Gold, and the Cardinals!

    Front and Center this morning, Gold is retreating again today and has fallen well below $1,200... Here's the skinny... Yesterday, it was announced that China's Agricultural Bank of China reported a very successful public offering, raising more than $22 Billion. Now, what does this have to do with a Gold sell off I hear you saying? Ahhh grasshopper... Come, sit, let's discuss...

    Basically, it's like this... If a Chinese Bank can pull off a very successful IPO without breaking a sweat, then the daggers can be put away on a global risks, and that could be seen in the performance of equities all across the board yesterday....
  • G-20, Schmee 20!

    In This Issue..

    * No clear direction from G-20...
    * A bias to sell dollars this morning...
    * Those guys are wrong, and I'm right!
    * Riksbank to hike rates this week?

    Good day... And a Marvelous Monday to you! A weekend that feels like it went by in a flash! WOW! Don't know how that happened, but it did... This coming weekend will be a 3-day Holiday weekend, so hopefully that 'went by in a flash' feeling doesn't repeat itself!

    Well... This past weekend was the G-20 meeting, and the anticipated brawl between the U.S. and Germany on spending VS cost cutting... Well, the brawl didn't happen, instead they agreed to say that they will 'tackle deficits once economic recoveries are assured'... Which here in the U.S. means... NEVER! Not that the economic recovery won't eventually come along, but that our lawmakers aren't going to stop spending... However, there are elections that might just change their minds, eh?

    ...
  • ‘For Much Longer’...

    In This Issue..

    * Aussie PM resigns!
    * Aussie mining tax is dead!
    * New Home Sales plummet 33%!
    * Fed is not so "cocky" any longer...

    Good day... And a Tub Thumpin' Thursday to you! It's Tub Thumpin' because of some good, no great news from Australia overnight! It certainly isn't because of the Housing data that printed yesterday! And the Fed isn't so 'cocky' about the economy suddenly... Hmmm... These things and more, as we explore our Tub Thumpin' Thursday, so let's go!

    Front and Center this morning, Julia Gillard became Australia's first female prime minister after Kevin Rudd stepped aside as leader of the governing Labor Party, paving the way for the government to drop a controversial new 40% levy on mining profits that has damaged its standing in voter polls.

    ...
  • Re-Thinking China...

    In This Issue..

    * Risk Assets sell off...
    * Is China trying to appease G-20?
    * Aussie commodity profits skyrocket!
    * Gold sells off by $22...

    Good day... And a Terrific Tuesday to you! Are you full? You know appetite wise... Probably not, for most of you read the Pfennig in the morning, with a cup o' Joe... The renewed appetite for Risk that the markets were displaying yesterday disappeared yesterday afternoon... The markets were full of risk, I guess... For the selling was swift, and damaging to the levels the currencies, commodities, and stocks had gained overnight on the news that China would allow more flexibility in the renminbi...

    See how fickle these markets / traders are? Very! You had a day that everyone was looking forward to, China allowing the renminbi to gain VS the dollar again, and just threw it to the roadside... UGH!

    ...
  • A Return To Debit Crisis Trading...

    In This Issue..

    * Strong euro rally fizzles out overnight...
    * Russia to add C$ and A$'s?
    * IMF sides with U.S. on Chinese currency policy...
    * Aussie housing starts are strong...

    Good day... And a Wonderful Wednesday... Man! Did we have some torrential downpours yesterday! The creek that my yard backs to was 'a risen'! I can't imagine all the rainouts of ballgames this spring... It's one of the things that drove me crazy, when I was a baseball manager...

    OK... The rain was coming down hard on the dollar yesterday too... But, this morning, when I turn on the screens, it looks like that dollar selling that went on all day yesterday, has had the brakes applied. I would say slammed on, but it all happened while I was sleeping, so I don't really know for sure!...
  • Let's Talk Deficits...

    In This Issue..

    * A$, kiwi, and C$'s outperform...
    * Yen gets what is deserved!
    * Deficit to reach 100% of GDP?
    * Don't they work for us?

    Good day... And a Thunderin' Thursday to you! It has been Thunderin' here most of the night, so it was quite fitting to call our Thursday, Thunderin'! It's been a week of pop-up Thunder Showers for us here in the Midwest... If summer plays out the way most summers play out, we'll be pining for rain come August!

    The Japanese have a new Prime Minister (Kan), and the currency markets don't like it! The once so-called 'safe haven' of yen, is getting sand kicked in its face, and rightly so, as the new PM has previously stated his goal of a weaker yen...

    ...
  • 110 Billion euros For Greece...

    In This Issue..

    * Aid Package for Greece is approved...
    * Aussie Gov't proposes a 40% mining profit tax!
    * ANZ Commodity Price Index rises 14th consecutive month!
    * Jobs reports this week...

    Good day... And a Marvelous Monday to you! Well... I'm back in the saddle today... It's been a long time, now, I'm coming back home. I've been away now, oh how, I'm coming home! Yes... I'm actually here, at my desk, and I'm not squinting, I'm not closing my eyes, and I'm not in pain! YAHOO! I've decided to go 'patchless' for now at least... More later on what's going on with the removed eye...

    Front and center this morning... Greece accepted the bail out terms from the Eurozone yesterday, and Germany says that Greece should have their funds by Friday... After months of hemming and hawing about whether Greece should receive funds, or whether or not Germany would actually release funds to Greece, it looks as though it's all coming to an end.... For now!...
  • US data comes in stronger than expected...

    In This Issue..

    * US data comes in stronger than expected...
    * Worries over Greece pushes dollar higher...
    * China grows at 11.9%...
    * Australia may look to pause?...

    Good day, it is tax day which is not usually a happy day for the 51% of the folks who have to pay the taxman. Chuck would take the opportunity to break into the Beatles song right now, but I'm not as good with lyrics, so you will just have to hum it in your head. The dollar was down in trading yesterday, as most of the data released was positive and emboldened traders to move money out of safe havens. But overnight the Asian markets decided to take the dollar higher, and the Europeans are continuing to buy greenbacks. I'll get to what caused the big change in a second, but first I will review all of the data we got yesterday morning....
  • Euro falls as Greece pushed toward IMF...

    In This Issue..

    * Euro falls as Greece pushed toward IMF...
    * Decision on Norwegian interest rates...
    * Canadian dollar rises...
    * Kiwi to outpace Australian dollar...

    Good day, the dollar gained ground across the board as the news hit that the IMF will be brought in to help rescue Greece. The dollar was also helped by data which showed existing housing sales fell by less than expected in February. We will get additional news on the status of the US economy today, with the release of durable goods and new home sales numbers for February. We will get a rate decision by the Norwegian central bank today, which could stoke calls for higher rates here in the US. But the big news overnight is concerning the euro (again!).

    The euro sold off by a full percentage point vs. the US$ after both Germany and France are reported to have agreed to have the IMF involved in aid to Greece. This is an about face for European leaders who announced last week that they had agreed on a European solution to the Greek crisis. But Germany's Chancellor Angela Merkel threw a spanner in the works a week ago when she said Germany would not participate in giving Greece financial aid. This threw the euro into crisis mode again, as the 'agreement' reached early last week never materialized....
  • Merkel throws Greece under the bus...

    In This Issue..

    * Merkel throws Greece under the bus...
    * Canadian dollar moves higher...
    * China policy causes carry reversal...
    * Jobs data to move the markets...

    Good day... And good morning to all of you. I arrived in the 'sunshine' state only to find rain and cold. It is actually a bit colder here than back home in St. Louis, but the trip down went well, I got to do my run on the beach, and I had a great dinner with a large group of EverBankers last night; so I'm not going to let the weather get me down.

    The German's broke rank with the rest of the EU and suggested Greece should turn to the IMF for support. The euro had rallied over the past couple of days after it seemed the EU finance ministers had agreed on a loan facility to back the Greek government. But Germany's Angela Merkel threw a cat among the pigeons today when she said Greece should not look to the EU but should turn to the IMF if it needs aid. So traders immediately started selling the euro again as the black cloud of a possible Greek default fell hung back over the market....
  • Greek debt is the euro's Sword of Damocles....

    In This Issue..

    * Greek debt crisis continues to hang over the euro...
    * Moody's says the UK and US debt ratings are secure, for now...
    * Swiss National Bank lets the franc appreciate...
    * Lots of data on tap in the US this week...

    Good day, and welcome to another week. The alarm clock seemed to go off an hour early this morning, as my body hasn't yet adjusted to daylight savings. I have heard several reasons for the semi annual adjustment of our clocks, but still don't buy into it. I think everyone should just agree to leave the clocks alone and I for one vote to leave them where they are right now, giving us an extra bit of sunlight in the evenings. We didn't see much sun here in St. Louis this weekend, as a soft spring rain has been coming down for the past 3 days....
  • U.S. Trade Deficit Widens...

    In This Issue..

    * A back-n-forth day in currencies...
    * Canada slips into deficit in trade...
    * Waiting on Aussie jobs data...
    * A story in Business Week, you'll want to read...

    Good day... And a Wonderful Wednesday to you! The 'January Thaw' continues... Hopefully, in time to save the orange trees in Florida! That's all we need right now is to see food prices ratcheting even higher than they already have gone... NOT!

    HEY! Good morning to you! I've had a very typical morning, with no surprises, no scavenger hunts for anything, didn't have to stop on my way in for anything, so, I was feeling pretty good, until I got here, and saw the price of Oil...

    The price of Oil has dropped from $83.18 a week ago, to $79.80 this morning... Why did this spoil my day? Well, like Lloyd Bridges in the Airplane movie, I must have picked a bad day to fill my gas tank, the other day, when Oil was so high!

    ...