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  • The Dollar Rides The White Horse.

    In This Issue.

    * ECB & Bundesbank talk supports the euro.

    * Yen rallies.

    * Norway, Canada and others in a bind .

    * Gold on a losing streak.

    ...
  • 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....
  • Treasury Issuance Hits Record Amounts!

    In This Issue..

    * It's a Risk On Day... Kind of...
    * Gold hits $1,171!
    * Germany's IFO hits a 15-month high!
    * Even the NY Times talks about deficit spending!

    Good day... And a Terrific Tuesday to you! A Risk 'kind of' On Day... Which I believe will be difficult to hold on to as we draw closer to Thursday. The volume will dry up, like I said yesterday like using a Sham Wow (Vince where are you?) and... There will be all kinds of position squaring ahead of Thursday, for many traders, including yours truly, will be making this a 4-day holiday weekend, and good traders do NOT leave themselves out on a line with open trades before leaving for 4 days!...
  • 3rd QTR GDP To Lift Our Spirits?

    In This Issue..

    * Currencies rebound a bit VS the dollar..
    * Bill Gross on the dollar...
    * Norway raises rates!
    * RBNZ lifts easing bias!

    Good day... And a Thunderin' Thursday to you once again! It's not raining at the moment, but rain is forecast for today, thus the Thunderin' Thursday name! Rain today, tomorrow and who knows when it will stop... I'm thinking of buying the blueprints to build an Ark!

    Front and Center this morning, we have the non-dollar currencies showing some healing as stock futures are positive. What's driving this new found positive feeling in the risk assets? Well, it's all about the first reading of 3rd QTR GDP today, which... Is expected to show that the U.S. economy came out of the recession in the quarter. Of course, I'll be looking for the Gov't spending portion of the GDP, but other media outlets won't, and the markets will get back to looking for higher yields, which you can not get in the U.S.!

    ...
  • German ZEW Underpins The Euro...

    In This Issue..

    * Currencies rally on tariff news...
    * Norway's election doesn't move krone...
    * Canada's Gov't problems to hurt loonies?
    * 1-year since Lehman Bros...

    Good day... And a Terrific Tuesday to you! Well, just as I suspected yesterday in the Pfennig, when the U.S. traders came in and got word of the new Chinese tariffs on tires, the dollar got sold like re-mastered box sets of Beatles albums! So, we've got that to talk about, and some other items I'd like to discuss... So, here we come Terrific Tuesday!

    OK... Well, just as I stated above, the U.S. traders didn't care for the new tariff, feeling that it would project a trade war, and therefore sold the dollar. The Big Dog, euro, traded to 1.4635 by mid-day... There was some profit taking late in the day, which brought the euro back to below 1.46, but then this morning, the euro got another boost from a report on German Investor Confidence, to bring it back to 1.46, as I write......
  • The Treasury Secretary rides to the rescue...

    In This Issue..

    * Geithner rescues the stock market...
    * Commercial real estate, the next big drag...
    * Norway: the new safe haven...
    * China pushes for a new reserve currency...

    It was a dramatic day on Wall Street yesterday, with the major stock indexes surging as much as 6 percent, including the Dow Jones which jumped more than 400 points. The reason for all of this euphoria on Wall Street? A combination of Geithner's plan to rescue the banks from the toxic debt in which many are mired, and a surprisingly large uptick in existing home sales. I touched briefly on the Giethner plan in yesterday's Pfennig and readers know I am more than a little skeptical about its possible success.

    But the housing numbers really caught me off guard. Existing home sales jumped a tremendous 5.1% in February, clearly above all expectations. But Chuck pointed out that the almost 1/2 of the sales were either foreclosures or short sales, hardly what you would call a 'rebound' in home sales! And these additional existing home sales came at deep discounts. The median price for an existing home fell 15.5% in February 2009 to $165,400 as compared to $195,800 in February of 2008....
  • A Horrific Jobs Report!

    * 651K jobs lost in Feb... * Dec. and Jan Job losses revised up... * Talking Norway, Canada, Australia... * Brazil stealthlike for 3 months... ** A Horrific Jobs Report! Good day... And a Marvelous Monday to you! A wonderful weekend here in St. Louis, a taste of spring was in the air. I got to spend some time with some of my closest friends on Friday night, a good time was had by all! Well... Our Fantastico Friday was interrupted by that horrific Jobs Jamboree number that printed Friday morning... 651K jobs were lost in February, which let me remind you is a couple of days shorter than other months. So, it could have been worse! Hard to believe that could be the case, but it's true. The unemployment rate rose to 8.1%, from 7.6% in January. The jobless rate is the highest since 1983. The economy has now shed 4.4 million jobs since the recession began in December 2007, with almost half of those losses occurring in the last three months alone....
  • 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!...