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Have You Seen This?

  • China Widens Trading Band.

    In This Issue.

    * China's weaker GDP hurts risk assets.

    * A$ to be underpinned.

    * Japan to get serious with deflation?

    * Retail Sales today.

    ...
  • The sleeping lion awakens

    In This Issue...

    *Enter volatility...
    *It's all about the euro debt... 
    *Gold and silver knockdown... 
    *China and Japan chat...

    ...
  • Back In The Saddle Again.

    In This Issue.

    * Japan grows at 1.3%...

    * Raising Margin Requirements.

    * Merkel and Sarkozy to meet again.

    * China, the new challenger.

    ...
  • Austerity Plans Meet Voters In Spain

    In This Issue.

    * Euro gets sent to the woodshed.

    * Spanish voters not in the Austerity frame of mind.

    * China in talks to add Japan and S. Korea to their roster.

    * 872,000 foreclosed homes, with 1-million more to come.

    ...
  • Filling In The Gaps...

    In This Issue..

    * Currencies sell off lofty levels...

    * Swiss francs trade above parity again!

    * Gold & Silver remain strong...

    * Saber Rattling between the U.S., China, and Japan...

    ...
  • Risk Off as US data disappoints…

    In This Issue..

    * Risk is back off on poor US data...
    * Euro pauses at $1.32...
    * China moves by Japan to become #2...
    * Gold moves close to $1,200...

    Good day...and welcome to Wednesday, or as we call it on the desk 'hump day'. Yesterday was another busy day on the desk, it seems like investors are finally figuring out that in spite of the uncertainty in the markets, there are still some good opportunities. But while the flow of trades increased yesterday, the currency markets took a breather from their torrid pace on Monday.

    What movement did occur yesterday was mainly due to a plethora of data releases in the US which mostly disappointed. Personal income and spending in the US were both reported unchanged for the month of June, and May's numbers were revised slightly lower. And while US consumers were feeling the pinch, prices rose a bit more than expected with the PCE Deflator moving 1.4% higher vs. an expected 1.3% increase. So it was no surprise when the ABC Consumer Confidence number came in at -50, again worse than what was expected....
  • Moodys Again...

    In This Issue..

    * Currencies are mixed VS dollar...
    * Canadian credit & economy on the mend!
    * China to print a very strong GDP number?
    * Gold is back above $1,200....

    Good day... And a Terrific Tuesday to you! I'm writing from home this morning, because I go back to the Ocularist this morning to have more work done on my new 'eye'... I didn't sleep worth a darn last night, and I think I just had this visit on my mind.

    Well.. Speaking of something on one's mind.. Or, more like a case of too much too little too late, Moodys announced overnight that they were downgrading Portugal's debt rating, 2 levels to A1... I don't want to get started on these ratings agencies again, they have become as useless as a pay toilet in a diarrhea ward! Ok... That probably wasn't too good to start off today's letter with a saying like that, but... It's what my fat fingers typed, so it stays!...
  • Central Banks Diversify...

    In This Issue..

    * Currencies soften VS the dollar...
    * Another look at Canadian job data...
    * China has Super month of exports!
    * Yen gets rocked by Upper House election...

    Good day... And a Marvelous Monday to you! Congratulations to Spain... The fiesta is on in Spain, as their football (soccer to us) team won the World Cup yesterday. Personally, I think Holland, got the bad end of the stick on two calls that would have turned that game their way. But, it was not to be, and Spain hoisted the cup!

    OK... Well, thanks to Chris for taking over the Pfennig on Friday. I was busy with other things for the day. I sent a note to Chris Friday morning about the Canadian Job report, and he replied that he had already written about it! WOW! Quick on the draw! He beat me to the punch... But, the report was so good it's worth talking about some more! Canadian employment skyrocketed again in June rising by 93,200, almost four times the amount expected by forecasters (+20,000). Add this to the 133,000 jobs created in April/May And you've got the ingredients for a strong quarter of job creation! The unemployment rate fell back to 7.9%, lower than forecasts for an 8.1% print.

    ...
  • Questioning China... Again!

    In This Issue..

    * Risk Aversion takes over...
    * Gold fails to reach all-time high...
    * Debasing is good?
    * Treasury yields plummet!

    Good day... And a Terrific Tuesday to you! Well, it looks like the hurricane in the Gulf will veer left, and avoid the 'spill area'... So, those guys working in the Gulf finally catch a break! The bias to sell dollars didn't last too long yesterday, about as long as it takes for an Albert Pujols home run to leave the park! This back and forth stuff is really beginning to give me a rash, folks...

    Yesterday, the selling of the currencies and metals began with Gold... The shiny metal had climbed to just above $1,260, but could not go further, and apparently, traders threw in the towel because Gold couldn't go past its all-time high of $1,266... Gold began to sell off and in the blink of an eye, it went from being up $8, to being down $14! OUCH!...
  • SNB Is Wrong!

    In This Issue..

    * Euro rallies...
    * Risk returned during Tuesday's U.S. session...
    * Gold rises above $1,200 again...
    * Italy announces Budget Cuts...

    Good day... And a Wonderful Wednesday to you! I go back to the eye surgeon today... If it all looks good, then I go to see the Ocularist, who will hand paint a shell to go over the prosthesis that replaced my eye. The shell will match my right eye, and I won't look so 'creepy' as my beautiful bride says, anymore... Funny? Yes, but creepy... No!

    OK... What a strange pattern we seem to be in the past few days of trading... It used to be the overnight markets would run the currencies up VS the dollar, and the U.S. session would knock them back down... That's reversed these days. Yes, the overnight markets have been pushing the currencies down, and the U.S. session has been picking them up......
  • Now It's Spain...

    In This Issue..

    * Euro drops 2-cents overnight...
    * All Risk is taken off the table today...
    * Geopolitical problems steady Gold...
    * The Budget Cuts just keep coming!

    Good day... And a Terrific Tuesday to you! Well, it was almost a "perfect ride" to work this morning, as I hit all the green lights until the very end! UGH! See, it doesn't take much to make me happy!

    The euro's green light ended last night too, as 'Now It's Spain' (NIS)... As I was packing up to go home yesterday afternoon, the euro had moved beyond 1.24, and I said, 'I wonder what's got the euro so perky this afternoon'... Well, that 'perky' feeling the euro had at that time was wiped out and more by fears that Spain's problems are now going to take center stage... Greece is an afterthought at this point, now it's Spain......
  • Another roller coaster day in the US...

    In This Issue..

    * Another roller coaster day in the US...
    * TIC data shows China and Japan losing their appetite...
    * Eurozone members support Greece...
    * Precious metals rise...

    Good day... We had a pretty busy day in the currency markets yesterday, with the dollar rising sharply in the morning only to sell off again after lunch. The selling continued in Asian trading, and the dollar index is back down to levels it was at this time yesterday morning. These roller coaster rides will probably continue as the markets just don't seem to know where to take the currencies. Short term moves will continue to be exaggerated, but the long term dollar continues to be in place.

    As I pointed out yesterday, this is a very busy week for data here in the US, and yesterday started us off with a bang. The volatile Empire manufacturing number showed a slight tick up but pretty much came in where it was expected. The more important Industrial Production and Capacity Utilization numbers followed, and both confirmed the US economy is continuing to recover; albeit at a slow pace. Industrial production increased .1% in February, and Capacity Utilization also increased to 72.7%. This data got the day started off right for dollar bulls, and the greenback shot up.

    ...
  • Japanese Investment Trusts To Buy A$'s?

    In This Issue..
    * Currencies recover from Discount rate hike...
    * Gold recovers too...
    * An idea for Greece...
    * Loonies fueled by Oil and Gold...

    Good day... And a Marvelous Monday to you! Happy Birthday George Washington! One of my fave past Presidents for sure! And I'm so excited about this, it can't wait until the last paragraph... How about that U.S. Men's Hockey VS Canada game last night? WOW! I had a reader ask me a couple of months ago why I didn't mention the U.S. Under 20 men's hockey Championship, which came against Canada... So there, hopefully I made up for that missing comment!

    Well... Front and Center this morning... Let's start with this... Consumer prices rose 0.2% in January, equaling the increases in December and November. Market expectations going into the report had been for a slightly larger 0.3% rise. Core prices surprisingly fell 0.1% in January following the 0.1% rise recorded in December and the flat reading in November. On a year-over-year basis, the overall CPI index rose 2.6% in December....
  • Japan Posts a 4.8% GDP!

    In This Issue..

    * Risk Aversion goes away mad...
    * China just says 'no' to currency flexibility...
    * Maybe a return to fundamentals?
    * Gold continues to soar!

    Good day... And a Marvelous Monday to you! It's raining here, so it's one of those Rainy Days and Mondays... But I won't let it get me down, as opposed to the song! I got a chance to check out our new digs in the building next door to us here... Very nice! And... A long way from that small office I sat in on Olive St. a decade ago, when we started EverBank... To think back 10 years ago, and where we are today... Simply amazing!

    OK... As I told you Friday, the President was in China this past weekend, trying his best to get the Chinese to agree to a greater flexibility for the renminbi... Well... There were a few stories this past weekend that hinted about the Chinese agreeing to do such... But I prefer to go with this story that appeared on Reuters last night... 'The Chinese government has sought to distance itself from speculation surrounding a central bank statement earlier this week that was interpreted as a shift in currency policy towards a stronger yuan. However, a report on Saturday by Xinhua, the state-controlled Chinese news agency said that the government would not allow the currency to gain against the dollar in the short term.'

    ...
  • 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......