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  • Dollar ends the week drifting even lower...

    In This Issue.

    * Dollar continues to drift lower...

    * Global growth expectations increase...

    * Japan introduces a new word to the markets...

    * Thanks to Loraine for the doughnuts...

    ...
  • Risk Sentiment Returns.

    In This Issue.

    * Good Italian auction pushes euro higher.

    * MAS leaves band for Sing dollar unchanged.

    * Japan cuts their economic assessment.

    * NZ PM John Key, with a classic quote.

    ...
  • ECB Changes Stance.

    In This Issue.

    * Currencies & metals rally on ECB news.

    * Fed to devalue dollar by 33%?

    * Japan posts smallest CAD since 1996.

    * The Misery Index, deux.

    ...
  • The Bank of Japan puts money where their mouth was.

    In This Issue.

    * BOJ intervenes...

    * ECB & BOE announce rate decisions...

    * US treasuries defy possible ratings downgrade...

    * Commodities bull market to continue...

    ...
  • Dollar slides as investors move out of 'safe havens'...

    In This Issue.

    * Dollar slides as investors move out of 'safe havens'...

    * Another result of the catastrophe; Japan to sell US treasuries...

    * Swiss franc continues to climb...

    * India increases interest rates...

    ...
  • Downgrading Japan.

    In This Issue.

    * Is a downgrade coming our way?

    * CBO revises forecast upward.

    * FOMC leaves rates & QE2 in place.

    * Richard Russell on the dollar.

    ...
  • RBA Disappoints...

    In This Issue.

    * Eurozone Manufacturing rises...

    * Japan goes negative with rates!

    * A$ gets hammered after RBA decision...

    * Food prices are rising...

    ...
  • Japan Spoils The Party!

    In This Issue..

    * Currency rally is stopped by BOJ...

    * Gold reached new all-time record high!

    * U.S. Retail Sales better than expected...

    * a "death spiral" for pensions?

    ...
  • 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.

    ...
  • A Jobs Jamboree for Friday 01/08/2010...

    In This Issue..

    * The dollar holds gains...
    * Japanese saber rattling...
    * Geithner in trouble?
    * Commercial Real Estate in trouble...

    Good day... And a Happy Friday to one and all! The first Friday of 2010! So, let's call it a Fabulous Friday, and save the Fantastico for a day when we'll see the temperature at least reach the freezing mark! Our 'snow day' is over, everyone was safe...

    You see, and I hope you don't mind me taking this trip in the past, many years ago, I spend a winter of discontent, I might add, in Des Moines, Iowa... Where it began snowing in November and didn't stop until the first week of May... When I first moved there, I noticed that their street crews didn't plow the roads, and salt them like they did in St. Louis, they just threw cinders on the snow and people drove on it. That's where I really learned to drive on snow... As the years went by, back in St. Louis, dealing with snow, I realized that the way they did it in Des Moines was better!...
  • Brazil To Benefit From New Carry Trade?

    In This Issue..

    * The dollar fights back...
    * Government deficit spending deep sixes us...
    * Brazilian rate hikes on the table...
    * Round Two of the PPT thoughts...

    Good day... And a Thunderin' Thursday to you! Well... It's not really Thunderin' outside, but it is snowing, with about 3-4 inches on the ground already, and the snow coming down so thick that seeing is difficult. I made it here, but then I drive a car that was made to go in stuff like this! Pretty soon, my phone will begin to ring, with colleagues calling to ask me how the roads were...

    Well... We had more probing higher in the non-dollar currencies only to see the gains wipe away at the end of the day yesterday. Still, as I told a radio audience in Oregon yesterday, traders, investors, etc. still believe the euro is worth more than the dollar by quite a bit... Gold also gave back some gains overnight......
  • The Markets Ignore Bernanke...

    In This Issue..

    * The dollar continues to get bought...
    * German Investor Confidence weakens...
    * The Carry Trade shifts to Japan again...
    * More deficit spending...

    Good day... And a Terrific Tuesday to you! Not a Terrific Tuesday for the non-dollar currencies though, as the overnight markets have marked them down once again, and favored the dollar... More on that in a minute... I got a chance to meet up with some old friends and co-workers last night, at a holiday party... I had to leave early though, my leg couldn't stand that long... UGH!

    OK... The daily noise, has the bias to buy going toward the dollar this morning... For some unknown reason, and I emphasize this here... The markets are not listening to Big Ben Bernanke, when he says that current near zero interest rates will remain for 'some time to come'... You see, the markets are under the impression that he's giving us a head fake, and will raise rates aggressively very soon, for the data that has printed recently is of the "need to raise interest rates before inflation takes the economy hostage" kind of stuff......
  • Bernanke Squashes Rate Hike Hopes...

    In This Issue..

    * Non-dollar currencies see some healing...
    * Gold rebounds during the day...
    * Japan to issue $81 Billion stimulus package...
    * Canadian loonie is best performer on the day...

    Good day... And a Terrific Tuesday to you! Day one in the new office, seemed to work out pretty smoothly, with only our fax machine giving us fits... As I said yesterday, kudos to the organizers, planners, doers, tech gurus, and anyone else that had anything to do with this move...

    OK... Well, yesterday, I left you with the dollar on the rampage, and the non-dollar currencies and precious metals in the woodshed, having been beaten so badly, they didn't want to come out!

    But that was before Fed Chairman Big Ben Bernanke spoke... So, let me set this up for you... The dollar went on a rampage Friday after the BLS aided Jobs Jamboree surprised the markets with how strong it was, thus giving the market players the idea that the Fed would probably move up their date to get off the schnide and raise rates again... But then along came Ben, slow talking, slow walking Ben... And he set the record straight!...
  • G-20 Heats Up...

    In This Issue..

    * Dollar's rally is cut short...
    * Major problems for loans still exist...
    * Yen rallies on exporter repatriation...
    * Kiwi gets whacked!

    Good day... And a Happy Friday to one and all! It's still raining here in St. Louis this morning, but I won't that get me down, as it is a Friday! G-20 has gotten a bit ugly, folks... Seems everyone just can't seem to get along! Imagine that! 20 different countries, and now they want to be able to watch another country's finances and comment on them! Oh, I can see that working out real well! NOT!

    So... Yesterday, we had the dollar gaining back the ground that it had lost the previous day, but at the end of the day, we're looking very much like the currencies hadn't moved from morning to morning... And overnight, didn't bring about much movement... So... When you get to the currency round-up below, you'll see the dollar's gains were small, and short-lived....
  • Dollar continues it’s slide...

    In This Issue..

    * Dollar continues to slide...
    * US GDP contracts but not as fast...
    * Nordic currencies outperform...
    * Japanese yen continues to fall...

    Good day... The last day of July is upon us. Time just seems to keep moving faster as it seems summer just got started. The fall of the dollar also accelerated yesterday as investors moved back out of the 'safe haven' of US$ and continued to shop for more yield. The greenback tried to stage a bit of a rally in early European trading, but has fallen back off again as I sit down to write the Pfennig.

    I got a call from a Reuters reporter yesterday mid morning to ask why the dollar was rallying at the same time stocks were moving higher. I quickly paged through my Bloomberg looking for some sign why both were heading higher. The trading pattern which has been established over the last few months has these two asset classes moving in opposite directions; good news for the US economy sends stocks higher and the dollar lower as investors retreat from defensive 'safe haven' positions in the US$. The opposite occurs whenever there is data which shows the global economic recovery is faltering, stocks move lower and the dollar rallies with safe haven buying....