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  • The Euro Trades Through Resistance!

    In This Issue..

    * Most currencies rebound...

    * Gold reaches another record high!

    * Tons of data today...

    * Glad they didn't take TARP...

    ...
  • All mixed up in the currency markets...

    In This Issue..

    * Mixed up currency markets...
    * Canadian dollar off its highs...
    * Swiss franc continues to rally...
    * China to maintain their peg...

    Good day, it is a beautiful spring day here in St. Louis, and I was able to squeeze in a run first thing this morning before coming in. We had a busy day on the trading desk yesterday, as we had a couple visitors from our legal department in Jacksonville visiting us to give us some training. We also had a number of calls generated by a newsletter which highlighted our basket CDs. We will probably have another busy day, so I had better get right to the markets.

    ...
  • Eurozone Economy Stumbles, Fumbles...

    In This Issue..

    * Euro gets sold on weak data...
    * China tries to slowdown again...
    * A$'s get slapped on the China slowdown attempt...
    * Retail sales & confidence print today...

    Good day... And a Happy Friday to one and all! A Fabulous Friday, in hopes of becoming a Fantastico Friday! It is a 3-day weekend, and we get paid today, so there are some good steps toward Fantastico... Alex's Fox "gig" went great, he stood up, strong and tall, and ripped off a smokin' guitar solo that lasted about 1-2 minutes... But, it was a very late night for yours truly, and so I'm draggin' the line this morning...

    Front and Center this morning, the non-dollar currencies led by the euro, are sliding against the dollar... Yesterday, the currencies range traded all day, and in the overnight Asian session that pattern remained tight... But in the European session this morning, as Economic growth in the euro zone slowed in the fourth quarter of 2009, as only one of the currency area's four largest economies expanded....
  • Increasing SDR Issuance...

    In This Issue..

    * Fed confuses markets, risk assets get sold...
    * SNB intervenes to stop franc's rise
    * ECB issues 12-month liquidity...
    * Bernanke to get grilled?

    Good day... And a Tub Thumpin' Thursday to you! Yes, I know the currencies and commodities got whipsawed yesterday, and my Cardinals got spanked, but that's no reason for us to not enjoy a Tub Thumpin' Thursday! Every day is a gift, and it has nothing to do with stocks, bonds, currencies, and commodities!

    OK... Not that I try to be philosophical, sometimes it just comes out that way! Besides, you don't want to think that I'm just a smart *** all the time! HAHAHAHAHAHA!

    Well, as I said in the open, the currencies and commodities got whipsawed yesterday, and the culprit was the FOMC minutes... You see, the Fed Reserve met to discuss rates, and other items. And what they said just blew away the bond vigilantes, and really ticked off the Hawks, but in the end, what they said, was really that things will remain status quo......
  • Gold Vending Machines!

    In This Issue..

    * More range trading...
    * SNB doesn't target the franc...
    * Norges Bank cuts rate but looks forward...
    * Buy your gold and Snickers!

    Good day... And a Tub Thumpin' Thursday to you! It was 95 here yesterday, and forecast to be even warmer, or should I say hotter, today! WOW! Like overnight, it turned to summer, after the coldest, most wet, spring I can ever recall... I know, I'll get 100 emails reminding me that summer doesn't officially start until next week... I'm just talking about the summer-like weather!

    The currencies remained in that range I talked about yesterday, with a slight bias to sell dollars, but not much of one. Crude Oil prices moved higher on the day and overnight, which doesn't play well with a dollar rally, and therefore, has pushed the dollar down a bit... But again, we're talking minor moves. It's as if someone (traders) are waiting for something BIG to happen with data, the Fed, the Treasury, before taking one direction....
  • Currencies Rally Yesterday...

    In This Issue..

    * Euro climbs back to 1.30...
    * High Yielders bounce back...
    * Gold to hit $1,500?
    * Kurt Richebacher...

    Good day... And a Tub Thumpin' Thursday to you! Yes, it's a Tub Thumpin' Thursday because it's finally supposed to be warm here today, and... The Card and Mets in a day game at Busch today... Wink, wink... It's also a Tub Thumpin' Thursday because... I said so! HA-HA!

    Well... We had a rally in the currencies yesterday and this time the rally wasn't reversed overnight by profit taking! WOW! It's been some time since we could say that! Maybe it was the good karma the overnight markets received by my little buddy Alex's base hit last night to drive in 2 runs! Or, the good karma from a Cardinals pitcher going into the 9th inning of a game! WOW! Or... Maybe, just maybe, cause you never know, fundamentals are creeping back into the currency markets?...
  • A building block...

    * A quiet Friday... * Euro hits 1.30... * Chinese concern... * This week in data... ** A building block... Good day...And a Marvelous Monday to you. Its hard to believe that Monday morning is already upon us, where does the time go? Just as the currency market took a breather, our cold weather from last week decided to follow suit as it turned out to be a nice late winter weekend. Friday was fairly uneventful as the currencies traded in a tight range throughout the course of the day so it will be interesting to see how this week shapes up. Let's see if the currencies can build from last week...

    Volatility was basically non-existent during Friday trading with less than a .50% difference between the high and the low of the dollar index. The overall bias, however, was a weaker dollar and the euro held onto 1.29 for a majority of the day and was near 1.2920 as I left the desk. The pound and Swiss franc were the only two currencies left on the bench last week with losses of about 1% and 2.5% against the dollar respectively. The rest were able to turn in a decent week with the Swedish krona on top of the pile posting a 6.5% gain....
  • A HUGE Currency Rally!

    * Another currency rally.... * SNB cuts another 50 BPS! * Budget Deficit continues to widen! * Treasury yields go south for the winter! ** A HUGE Currency Rally! Good day... And a Tub Thumpin' Thursday to you! It's been quite the rally this week in the currencies led by the euro, which is like old times, eh? The Big Dog on the porch finally gets to stretch its legs and chase the dollar down the street! It's been a long time since we've seen this go on for more than a day. Yes, we've seen one day spikes, and even two day rallies turn into false dawns, but this one has lasted about a week now. Ever since last Friday's awful Jobs Jamboree, the tide has turned, and the Trading Theme that has held the currencies in a full nelson since the end of July, could very well be on the way out the door. I said that about the Trading Theme earlier this week, so I just wanted to repeat that to emphasize the point!...
  • Misguided risk aversion...

    * Bad data pushes investors into US treasuries... * Barclay's says the euro will rally... * SNB surprises with a rate cut... * Iceland gets their bailout... ** Misguided risk aversion... Good day...The dollar rallied a bit yesterday on some very poor economic data which illustrated just how bad things are getting here in the US. As Chuck has repeatedly told everyone, in the current trade pattern the dollar rallies whenever we get negative data for the US economy. Investors get spooked by this negative data, and run scared into the 'safety' of US treasuries. Ty sent me a quote from respected newsletter owner/author Bill Bonner yesterday: "Misguided risk aversion, anyone? A few months ago, investors stretched for yields. Now, it's safety they reach for...and grab U.S. Treasury debt with both hands. Investors now seem to have an unqualified trust in the full faith and credit of the world's largest debtor. Yields on 91-day T-bills have fallen to 0.11% - scarcely a tenth of one percent!"...