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  • Investor concern causes a move back to dollars...

    In This Issue..

    * Investor concern causes a move back to dollars...
    * UK elections weigh on the pound...
    * The loonie can't keep the buck...
    * Jim Rogers mirrors Chuck's thoughts...

    Good day, the dollar moved higher throughout the trading day, and the rally continued in overnight trading. Just about all of the major currencies were down, with the Singapore dollar and Japanese yen the only two which saw a positive return vs. the greenback. This would indicate Wednesday was a 'risk off' day, as investors moved money out of higher yielding currencies and back to the carry trade funding favorites of the yen and US$....
  • Confidence sends the dollar lower...

    In This Issue..

    * Confidence sends the dollar lower...
    * Good data for the US boosts Mexico and Canada...
    * The Fed exits stage left...
    * Pound rallies, but don't be fooled...

    Good day, only two more days left in March, and April brings Chuck back to the desk. The dollar bears returned to the markets yesterday as most every currency moved higher versus the dollar.

    Confident investors kept the dollar on the run yesterday as they went shopping for yield. The commodity currencies ruled the day again, with Australia, Norway, and Brazil's currencies all posting gains nearing 1.5% vs. the US$. Greece successfully sold 5 billion euros worth of bonds in the first sale since the EU reached agreement on a stability plan. The sale emboldened investors who moved funds out of their 'safe haven' parking spots in the Japanese yen and US dollar. It seems we are back to the risk on / risk off trading pattern which dominated the currency markets over the past year. Good news for the US or global economy means bad news for the safe havens of the US$ and yen, while the opposite occurs whenever the global recovery is called into question....
  • Jobless recovery?? Not going to happen....

    In This Issue..

    * Leading indicators up, but employment down...
    * 11 million new jobs in China...
    * Pound sterling gets pounded...
    * A Great Day for EverBank...

    Good day...and happy Friday! It has been a fairly busy week here at EverBank, with the issuance of another big BRIC MarketSafe CD, the maturity of another MarketSafe, and a big acquisition (more on that later). While things were a bit crazy at EverBank, the currency markets were fairly uneventful. The dollar started the day off with a move up after a positive report on US leading indicators, but it gave back most of the gains as the trading day wore on. At the end of the day, only one currency moved more than 1% vs. the greenback, with the pound sterling dropping almost 1.5%.

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  • Bernanke sticks to his script...

    In This Issue..

    * Bernanke sticks to the script...
    * Pound sterling comes under pressure...
    * China starts shopping for assets...
    * BRIC MarketSafe lights up the phones...

    Good day... We had a very busy day on the desk yesterday, as our newest MarketSafe offering, based on the BRIC currencies, is making the phones ring off the hook. But while we were busy, the currency traders had another slow day as the dollar just drifted throughout the day. The return chart for the last 24 hours shows only one currency made more than a .5% move vs. the US$; and that was the South African Rand which increased .75%.

    The markets were watching Ben Bernanke's congressional testimony through most of the day, but those waiting for a surprise were disappointed. Bernanke stuck to the script which he had laid out the day before in the Wall Street Journal, and the members of the House Financial Services Committee couldn't get him to commit to any 'new' stimulus programs. Bernanke said the economy is showing 'tentative signs of stabilization' but the central bank intends to continue to maintain its 'highly accommodative' monetary policy for 'an extended period'. He indicated that the Fed stands ready to tighten policy, but only after the economic recovery takes hold and pressures holding down inflation diminish....
  • Rescue plan not an instant fix...

    * Rescue plan to take time... * Pound sterling rallies (for now)... * Brazil supports the real... * Iceland cuts rates... ** Rescue plan not an instant fix... Good day...Another roller coaster of a day, as the dollar continued to slide through lunch but then rallied back up in the afternoon. As I walked out the door last night, most of the major currencies were trading right about where they were when I turned the screens on. The dollar has started to fall again in overnight trading, so the up and down of the past few weeks looks to continue. The news stories coming across the wires this morning seem to be as volatile as the currencies. I have now counted three different stories which state the markets are moving back into higher yielding currencies and riskier investments after the coordinated bank bailout plan which was announced yesterday. But several other stories are talking about how investors are moving out of the higher yielding assets because of concern that the bank rescue will take too much time to unfreeze global credit markets. I tend to agree with the latter of these....
  • Aussie Job Creation Soars!

    * A$ goes to 96-cents! * Foreclosures at 53% * Loonies rise? * A new way to bail out? ** Aussie Job Creation Soars! Good day... And a Tub Thumpin' Thursday to you! I just realized yesterday that July was slip-slidin' away from me just like June did, and I had better get to work on my two presentations for the Vancouver Show coming up in two weeks... I've talked about this Conference for months now, but in case you missed the info... Here is the link... http://www.isecureonline.com/Reports/400SCONF/E400J307/ OK... The currencies, for the most part, remain in a trading range that's tight... The euro pops up to 1.5750, and then falls back to 1.5665, and with the euro in a trading range the other currencies are experiencing the same treatment... That is, except for... Drum roll please... The Aussie dollar!...
  • What's Up With The Loonie?

    * Euro trading pattern... * Sterling backs off... * Data cupboard gets restocked... * Rupees disappoint... **What's Up With The Loonie? Good day... And a Wonderful Wednesday to you! I hit all my traffic lights on green this morning, so it's going to be a "good day"! Funny how little things like that put a smile on my face... OK... Another day of watching the euro rise up to 1.5815 and then see it get sold back below the 1.58 figure when the NY boys arrive at their desks. The pattern for the first two days this week has seen that selling in the morning, and then a slow rise in the afternoon, and then back over 1.58 in the overnight markets. That's where we are again this morning......
  • Bank of Canada Makes a Larger Than Expected Cut...

    * Bank of Canada cuts 50 bp... * Trichet supports strong dollar policy... * Swiss economy surprisingly strong.. * Aussie dollar eases... ...