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In This Issue...

* Dollar drifts lower...
* Looking for silver linings...
* NOK to increase rates...
* Aussie dollar continues to move up...

Good day... And good morning to everyone. I wanted to start out this morning's Pfennig by saying my thoughts and prayers go out to all of the families of the fallen soldiers and civilian at the tragedy down at Ft. Hood. It is tough enough when we here about losses of our soldiers overseas in the 'combat zones'; but such a large loss of life right here in the US is deeply saddening.

The dollar moved lower throughout the trading day on Thursday as investors felt more confident with the global recovery and the US stock market climbed back above 10,000. Yesterday's weekly jobs numbers were slightly better than expected, and set the market up for this mornings monthly jobs report which will probably show fewer job losses in October compared to September. But there will still be job losses, not gains; and the 'official' unemployment number will inch closer to double digits. We all know if you count those individuals who are underemployed (part time workers who would like full time jobs) and those that have given up on their job search, the actual unemployment number is more like 16%....

In This Issue..

* Leading indicators up, but employment down...
* 11 million new jobs in China...
* Pound sterling gets pounded...
* A Great Day for EverBank...

Good day...and happy Friday! It has been a fairly busy week here at EverBank, with the issuance of another big BRIC MarketSafe CD, the maturity of another MarketSafe, and a big acquisition (more on that later). While things were a bit crazy at EverBank, the currency markets were fairly uneventful. The dollar started the day off with a move up after a positive report on US leading indicators, but it gave back most of the gains as the trading day wore on. At the end of the day, only one currency moved more than 1% vs. the greenback, with the pound sterling dropping almost 1.5%.

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In This Issue..

* Low yielding currencies get sold...
* High yielding currencies remain solid...
* Further info on the inflation indexed bonds...
* Stealth QE...

Good day... And a Marvelous Monday to you! A very nice, but hot weekend here... But hey! It's August, it's supposed to be hot! Friday was an awful day for most of the currencies, and there was a HUGE surprise in the Jobs Jamboree (according to the BLS, of course!)... And, at the end of updates, I've got a story for you about stealth QE, you'll not want to miss a minute of that! So... Let's go!

Well, Friday's Jobs Jamboree was quite interesting to say the least... I had already told you about the forecasts for a HUGE drop in job losses for July from 467,000 to 325,000... But the number, according to the BLS, was 247,000!!!!!!! Way to Go Corporate America! Geez Louise, I wish it were that full of seashells and balloons! This smells of yesterday's fish folks... OK, let me get this straight... The forecast was for 325,000 job losses, and an unemployment rate of 9.6% (up from 9.5% in June)... And the jobs lost were 247,000, a difference of 78,000, and the unemployment rate fell to 9.4%... So, the BLS is telling me, and you, that 78,000 jobs not being lost, was equal to .2% (9.6 to 9.4)? Come on! I didn't just fall off the turnip truck!...

In This Issue..

* House prices move up...
* US consumers are worried...
* Japanese retail sales drag...
* Australian rates to rise...

Good day... We finally had a bit of volatility in the currency markets yesterday, as conflicting data released in two separate reports moved the markets in opposite directions. The dollar started off the day drifting lower, as has been the pattern over the past 2 weeks. But during the late morning the dollar started gaining strength, and has barely paused its ascent overnight.

Many of you probably heard the news reports that home prices finally rose during the month of May, and this is what had the dollar on the ropes yesterday morning. The S&P/CaseShiller Home Price Index reported that home prices in the US rose ever so slightly in May compared to April. But if we look at the annual figures, home prices are still down just over 17% across the country. Media outlets trumpeted this 'feel good' story with many economists declaring that housing has now turned a corner. This is a good sign, as prices have to stabilize before the housing sector can recover, but it is hard to get overly excited about a 17% drop YOY. The monthly figure rose just .5%, reflecting the first monthly gain since July 2006. Another report showed the share of homes sold as foreclosures or otherwise distressed properties fell to about 31% in June, down from a high of 50% seen earlier this year. With unemployment still creeping up, and the US consumer continuing to save instead of spend, I am going to need to see a couple of months of stabilized prices before I am convinced housing is turning the corner here in the US....

In This Issue..

* Tired of reacting to rumors!
* Aussie dollar continues to rally...
* More on China...
* Bank of England keeps rates unchanged...

Good day... And a Tub Thumpin' Thursday to you! We're stuck in a rainy pattern here in St. Louis, I just have to hope the rain stops long enough to get the day game at Busch in today!

Well... The Stress Tests get their public showing today... The rumors continue to be something strange... Strange in that, one it's Bank of America (BOA) needing to raise $10 Billion, the next day it's $35 Billion, and then later in the same day, BOA doesn't need to raise any capital! Talk about wild swings of emotion! WOW!...

In This Issue..

* Job Losses Continue To Mount!
* Currencies rally on the day...
* Shhhhh! The Gov't wants to keep this quiet....
* Richard Russell...

Good day... And a Marvelous Monday to you! OK, it's Opening Day here in St. Louis, so traditionally I bring this to you on Opening Day... Beat the drum, and hold the phone, the sun came out today, we're born again, there's new grass on the field... A-rounded third, and headed for home, it's a brown eyed handsome man, anyone can understand the way I feel.....

Yes, baseball freaks like me, believe we're born again every spring on Opening Day, for before that first pitch is thrown, everyone is in first place!...

In This Issue..

* Geithner sends the dollar on a thrill ride...
* A failed UK gilt auction...
* China set to recover first...
* AUD and NZD rally again...

Good day... The currency markets took back what little strength the dollar mustered over the past two days with the Euro moving back above popping back above 1.36 and the Australian dollar moving back up over .70. The cause for this dollar weakness? Data released in the US yesterday was surprisingly strong again, so investors dumped the 'safe haven' holdings of Treasuries and moved money back into higher yielding investments.

At one point yesterday the dollar index dropped precipitously (more than 1.5% in less than 10 minutes), and then bounced back up within a half hour. Jennifer McLean, who takes care of our currency trading while Chuck is away from the desk, said the sudden moves were due to Treasury Secretary Geithner's comments. Apparently Geithner was asked about China's call for a new international reserve currency yesterday at a NY event. He said that while he hadn't read the proposal, he understood it as a plan 'designed to increase the use of the IMF's special drawing rights. And we're actually quite open to that.' After hearing those words, currency traders immediately starting selling off the dollar. After all, if the Treasury Secretary of the US says the administration is open to a new international reserve currency, why do you want to hold dollars? I guess Geithner got wind of what he had done to the currency markets pretty quickly (the power of Blackberries!) and 15 minutes later he clarified his comments to say the US dollar should remain as the world's reserve currency....