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  • The Dollar Swings A Mighty Big Hammer!

    * Another dollar rally.... * Rumors in Ireland... * Trade Deficit narrows... * Retail Sales to disappoint? ** The Dollar Swings A Mighty Hammer! Good day... And a Wonderful Wednesday to you! I'm writing from home today, as I will not be in the office on this wonderful Wednesday. Writing from home, or the road, always presents problems for me, as I'm so used to being in the "saddle" at my desk, and having information all around me. But, my little work desk at home has some of those amenities... So, what the heck, quit your grumpiness, and get to writing, Chuck! The dollar ripped through the 1.32 handle of the euro yesterday, like a hot knife goes through butter! There was little to no resistance in that 1.32 handle, and before you could tell one of the many people on the desk here that sneeze all day, God Bless you, we were trading with a 1.31 handle in euros. The talk about a European Central Bank (ECB) rate cut has really ramped up this week, and taken its toll on the single unit. No one is mentioning that even if the ECB cuts 75 BPS this week, they'll still have a an interest rate / yield advantage over the U.S! I guess they'll sort that all out somewhere down the line, eh?...
  • Risk Aversion Reigns Supreme!

    * Currencies under dollar pressure * How strong can yen get? * TARP... * ECB rate questions... ** Risk Aversion Reigns Supreme! Good day... And a Terrific Tuesday to you! I'm draggin' the line this morning, but will get through this with my usual you know what and vinegar! The euro is trading at a one month low this morning, and the high yielders are getting stepped on again after enjoying a month a risk taking in the sun. That about explains everything, so I'll go the Big Finish now... Gotcha! Let's see what else is up on this cold and blustery Terrific Tuesday... So... It looks as though Risk Aversion is reigning supreme once again. I just don't buy into the dollar being the "safe haven" with all that's going on here. But, that's the way it is, and I can't change it. On a side bar, I used to have a customer that was convinced that I could move the markets with the Pfennig... I always thanked him for his complimentary remarks, but would hang up and have a chuckle, as IF I could change the way things are with my simple, humble little newsletter!...