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  • After A Down Day, The Dollar Rebounds.

    In This Issue.

    * Pfennig problems.

    * China is not a currency manipulator.

    * India imports Gold!

    * China's reserves fall, no worries.

    ...
    Filed under: , , ,
  • Canada boosts rates….

    In This Issue..

    * Canada boosts rates...
    * BOE called out for quantitative easing...
    * Indian Rupee to shine...
    * China loosens grip on Hong Kong deposits...

    Good day. We had some pretty unsettled weather come through the area yesterday and last night, with the lightening and thunder producing quite a show. The currency markets, on the other hand, were quite stable. The biggest gainer was the Yen, and the largest loser the Euro; but neither moved more than .65% vs. the US$. Tight ranges across the board for the currency markets....
  • Stocks Still Retain Some Pull...

    In This Issue..

    * Profit taking supports the dollar...
    * India posts strong data...
    * Sweden's inflation is above target...
    * Bill Gross, and Puru Saxena on a Tuesday!

    Good day... And a Terrific Tuesday to you! We reached the freezing mark yesterday, YAHOO! The first time this year! OK... So, we've got that going for us, here in St. Louis! A HUGE story going around St. Louis, and the country for that matter, yesterday, regarding the admission by Mark McGwire of taking steroids... Has the town buzzing... What? They didn't already have that Idea before? Hmmm...

    Well, the euphoria around the risk assets of currencies and commodities got watered down as the day went on yesterday, and that continued throughout the overnight and morning sessions in Asia and Europe. The currencies and commodities haven't turned on a dime, they just stopped moving higher VS the dollar... Although, now that I've said that, the euro has dipped below 1.45......
  • Renminbi To Become An International Currency?

    In This Issue..

    * Currencies give back ground overnight...
    * Don't look too closely at U.S. data...
    * India posts strong GDP...
    * Lots O'-data this week!

    Good day... And a Marvelous Monday to you! A Wonderful Weekend was enjoyed by your Pfennig writer, with good friends, and Chamber of Commerce weather, on a beautiful lake! It's back to work today though. I don't understand why I didn't plan on taking today and staying an additional day at that beautiful lake! Oh well... Time to go to work!

    When I signed off on Friday morning, the currencies were enjoying a very nice rally, which remained in place the rest of the day. The Consumer Income and Spending data was very much as I describe it would be, and so there was no surprise for the markets to deal with. You may recall, that I told you that Spending would be greater than Income, as the 'Cars for Clunkers' probably had something to do with the Spending be so much stronger than the Income piece......
  • Throwing A Cat Among The Pigeons Again!

    In This Issue..

    * Russia's Fin Min talks up the dollar!
    * Currencies, commodities, stocks all lose ground...
    * Who's car is uglier
    * Gold hit a 3-week low...

    Good day... And a Marvelous Monday to you! How about that weekend? I actually didn't get a chance to experience much of it outside, but it sure looked great! We have new champions in basketball and hockey, so congrats to the Lakers and Penguins on their Championships! Now, the housecleaning is out of the way... It's time to get to the meat... Where's the beef? HA!...
  • Spraying Round-up....

    In This Issue..

    * Industrial Production declines...
    * Stocks sell off, leading currencies down...
    * Indian election spurs a rally...
    * China stockpiles commodities...

    Good day... And a Marvelous Monday to you! Thanks to Chris for picking up the ball on the Pfennig Friday. I returned to St. Louis with a very swollen leg and foot from all that walking in Las Vegas. One of these days I'll learn, eh? Any way... A restful day with my feet up on Friday, and I was ready to go again!

    Well... As much as I dislike having to say so, because I told you this might happen... The currencies have given back some major ground VS the dollar since Friday morning. It's all tied to the fact that the euphoria going around the markets the previous week regarding stocks and the U.S. economy, came to a screeching halt last week. I pleaded and begged for the currencies to break this link to stocks, but it wouldn't / didn't happen and voila! What we have here is a failure to break the link, and now that there's a falling demand for stocks, currencies have tanked too... UGH!...
  • Currency markets stabilize...

    * Currency markets stabilize (for now)... * Data packed holiday shortened week... * China cuts rates... * Indian rupee falls... ** Currency markets stabilize... Good day...The dollar settled in at the slightly higher levels it reached Friday morning and is trading in a narrow range heading into a holiday shortened week. Trade desks across the globe will be mostly staffed by the backups as the big bosses take Christmas week off. Volume will likely be lighter, which can sometimes lead to an increase in volatility. The data calendar is empty today, but chock full tomorrow and Christmas eve. Markets will be closed on Christmas day, and most will be closed again on the day following Christmas (known as boxing day). GDP, Personal Consumption, U of Michigan consume confidence, New Home Sales, Existing Home sales, House price index, Richmond Fed Man. Index, and ABC Consumer confidence numbers will all be released tomorrow. On Christmas eve the US will release MBA Mortgage applications, Personal Income, Personal Spending, PCE deflator, Durable Goods orders, and the weekly jobs numbers will all be released. I told you we will be packing in a weeks worth of data in the next two days!!...
  • Credit Fears Ease...

    * Credit fears ease... * Chuck's thoughts from the road... * India cuts rates... * China growth slows, but is still 9%... ** Credit fears ease... Good day...And welcome to what should be another volatile week in the markets. Credit worries eased somewhat over the weekend, which helped push money back into the higher yielding currencies. Today Federal Reserve Chairman Ben Bernanke will head to Congress to share his view on the economy. Should make for a pretty interesting day of trading. Hope you are sitting down and holding on, it looks like we are going to take another lap on the currency roller coaster! The yen fell over the weekend as investors began moving funds back into the higher yielding currencies of Brazil, Mexico, New Zealand and Australia. I won't go into the whole explanation of the carry trade again, but suffice it to say that these moves haven't proven to have much staying power. But I do like the news that the credit markets may be calming down a bit after the government moves to shore up the big international banks....