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  • Flexibility Is The Word Of The Day!

    In This Issue..

    * A Big Currency rally!
    * Renminbi to become flexible...
    * Unintended consequences...
    * Gold flies past line of resistance!

    Good day... And a Marvelous Monday to you! It was Father's Day yesterday, I had a grand time, I hope you did too! It was extremely hot here, but shoot Rudy, it's summer... It's supposed to be hot!

    Well things heated up in the currencies this weekend... Yes, while everyone was wiping the milk from their mouths from their cereal they ate for breakfast on Saturday morning, the Chinese made a BIG announcement... Rather than tell you in my own words... Here is the official statement from the People's Bank of China (PBOC)......
  • A Jobs Jamboree Friday – 6/4/2010

    In This Issue..

    * Euro gets beaten down again...
    * Why should we do anything now?
    * Brazil keeping inflation away...
    * ADP says 55,000 jobs created in May...

    Good day... And a Happy Friday to one and all! I suspect this will end up being a Fantastico Friday, but right now, not so much... Today is the Big Jobs Jamboree, and the cable news stations are spinning it quite nicely. So nicely put that stock jockeys are believing the spin and running stock futures higher. I've got that to talk about today, and more debt stuff... Believe me dear reader, I wish I didn't have to talk about this debt stuff, but I feel as though me and a few of my friends are the only ones doing so, and I don't want you to become like the rest of the country and become 'comfortably numb' with the deficit figures!...
  • Bank of Canada Is First in G-7 To Hike Rates!

    In This Issue..

    * Euro's rally fizzles out...
    * Rates hikes are not over in Australia!
    * Japanese PM quits!
    * Brits offer advice to Greece.

    OK... Yesterday, I told you that the Bank of Canada (BOC) would meet today, and raise rates... Well, I got that 1/2 right! UGH! The BOC did raise rates, but they did it yesterday! Yes, the BOC became the first Central Bank in G-7 to raise rates, 1 1/2 years after the financial meltdown. The BOC tried to play down the move, by saying that they were not entering a rate hike cycle that would yield rate hikes meeting after meeting... But, with GDP, as reported here yesterday, running at 6.1% annualized, there are more rate hikes to come... It just won't be meeting after meeting... The BOC will sprinkle the fairy dust here, and a little there, some for themselves, and a little for us... A little more for them... HA!...
  • Details of Greek aid package boosts the euro...

    In This Issue..

    * Details of Greek aid package boosts the euro...
    * Officially the US recession is still not over...
    * Commodity currencies take a breather...
    * Polish zloty holds steady after tragedy...

    Good day, and welcome to another week. It is a holiday here in St. Louis, as it is the home opener for Cardinal nation. Looks like the fans will have an absolutely perfect day for the celebration, with sunny skies and temps in the upper 70's. Opening day truly is a local holiday, and a big number of workers will be calling in sick in order to go downtown to enjoy the festivities. Let's hope the Cardinals can bring the home crowd a winner!

    The EU gave the euro a big boost over the weekend as they announced the details of a $61 billion aid package for Greece. The announcement of the details calmed the markets and sent the euro shooting up close to $1.37 for the first time since mid March. The plan was hammered out back on March 25th, but details of how the aid package would be structured were not revealed, causing many to question it. Now that the details have been revealed, traders reversed some of their short positions and the euro has recovered....
  • Bailout Package For Greece Put On Hold...

    In This Issue..

    * Euro rally fades on latest Greek development...
    * Brazilian real rallies...
    * Canadian loonie ratchets higher...
    * Another Geithner smoking gun?

    Good day... And a Tub Thumpin' Thursday to you! It's Tub Thumpin' because... I say so! Every day's a new day... And for someone like me that had two strikes called on me before I knew the pitch was even coming... Every day is special!

    I want to thank every one that sent along a note of good wishes, and advice to tell the people that decide that email is a good way to ruin someone's day, good riddance... I'll have more on this in the Big Finish...

    But what a day the currencies had yesterday! The euro gained ground all the way back to 1.3730 (but saw some profit taking at the end of the day) and all the other currencies followed in step... Now... There's two ways to look at this... Either the euro is like a star that's getting ready to burn out... (it always shines brightest before it burns out), or... It's like a star that had been covered up by another planet, and is coming back into view!...
  • Euro moves back over $1.40...

    In This Issue..

    * Euro moves back over $1.40...
    * Norges bank to hold steady...
    * Pound moves up...
    * Investors move toward high yields...

    Good day...And a Wonderful Wednesday to everyone. It is another Great Day at EverBank! I am heading out to Orlando with Kristin later this morning, and still have a lot to get done before I head out the door, so I'll keep this pretty short and sweet.

    The Euro moved back above the $1.40 handle overnight after it was announced the EU would back Greece's plans to cut its budget deficit. European Commission President Jose Barroso said the EU is endorsing the Greek program and relayed confidence in the Greek authorities. The move came after the Greek government announced more measures to reduce the shortfall. The EU will demand monthly updates from Greece on its progress in cutting their deficit from the current 12.7% of GDP down to the EU's 3% limit by 2012. The approval of the plan by the EU does not mean the union will be backing Greek debt with loans and does not insure against a default, but only allows Greece to continue to be part of the EU despite their large deficits....
  • The Mini-Rally For Currencies Continues...

    In This Issue..

    * Euro takes baby steps higher...
    * Canadian Retail Sales disappoint...
    * Oil price plunge hurts petrol currencies...
    * Brazilian real drop on Wealth Fund selling...

    Good day... And a Marvelous Monday to you! Well... We made it through the weekend, here at the Butler house, just Alex and me. Had some visitors (friends) stop by Friday night, but after that, it was just us two. Good games yesterday, eh? I had all the snacks out on the table, and thought the older kids would stop by to watch games with us, but, that was a wasted effort on my part, as they did not, and then I had to clean all that up!

    Well... On Friday, the currencies kept with their mini-rebound VS the dollar, for the most part, as the Big Dog, euro crept higher and higher, but in tiny, baby steps for sure! It's as if traders are wanting to take the euro higher, and sell the dollar, but they just aren't sure, right now...

    Stocks got hammered on Friday in reaction to the President's proposed ban on proprietary trading in Banks... You know, it occurred to me that the Gov't does this, the media does this, and now I've gotten too lazy and do it... And that's to say 'Banks'... What they mean here are the investment Banks, like the Goldmans and the Morgan Stanleys... And yes it does include 'real' banks, but for the most part they are the ones that do more on the investment side than they do on the deposit side......
  • Are Fundamentals Creeping Back To The Currencies?

    In This Issue..

    * A$, C$ and Gold maintain gains...
    * euros and reals get sold...
    * What will China do?
    * The slowest buffalo theory...

    Good day... And a Wonderful Wednesday to you! January 6th... It's the Epiphany, or... The 12th day of Christmas! With it being the Epiphany, I wonder what will be revealed to us today regarding new deficit spending, or more corrupt government data...

    OK, that was a cheap shot, but, hey! Don't they deserve it? Always doing a hedonic adjustment here, there, and everywhere to make us 'feel good'... Oh well, I'll leave that there and go on to other things...

    This should be short-n-sweet this morning, as I overslept, something that I rarely do... Of course, I'm still here a good hour plus before anyone else, so I've got that going for me today!...
  • Risk Returns...

    In This Issue..

    * Currencies maintain their gains...
    * Aussie and real jump higher!
    * U.S. manufacturing is stronger...
    * Following Japan...

    Good day... And a Terrific Tuesday to you! Wow, it's cold here! I had to stop for gas this morning, and had some very bad thoughts about Al Gore, while standing there! That's funny! And, as one of my fave comedians says... 'that's funny, I don't care who you are!' HA

    Hey! I exchanged emails with the Mogambo Guru yesterday... He's such an interesting person! He's enjoying his time away from writing, playing golf, and spending his profits from Gold! If you need a Mogambo fix, you should check out this web site: www.bringbackmogambo.com

    OK... The first trading day of 2010, was interesting, as it certainly looked like risk was back on the table, and the Emerging Markets, and any currency that has some yield, were the beneficiaries of this return to risk taking. It certainly didn't take traders long to get back to dissin' the dollar in favor of these risk assets...I will warn you about this first day of the year move... Let's see if it carries through the rest of the week... If so, then the risk taking bus is about to leave the station, you might just want to be on that bus!

    ...
  • 3rd QTR GDP Is Strong!

    In This Issue..

    * Dollar gets sold after GDP report
    * High yielders get bought!
    * German Retail Sales decline...
    * Real has wild swings!

    Good day... And a Happy Friday to one and all! I can't believe how hard it rained here yesterday... Unbelievable! And me, with my cane, and not able to run, was stuck in it going from the car... Absolutely soaked! If I were a kid, I would have thought that to be fun! But, I'm not... It's still raining this morning too! UGH! Let's hope it stops in time for the Trick-or-Treaters!

    OK... Well the rain fell on the dollar's parade yesterday too! And, just like I thought it would do... The dollar got sold like funnel cakes at a state fair, once the U.S. 3rd QTR GDP report printed... The dollar rally was stopped in its tracks, which meant that the "trading theme" that rewards the dollar when things look bad in the U.S. and punishes it when things look good, which is completely opposite of what it should do fundamental wise, was still in place!...
  • Dollar rally peters out...

    In This Issue..

    * Dollar rally peters out...
    * Obama defends his policies...
    * Commodity currencies should outperform...
    * Global Power Shift Index...

    Good day... And happy Thursday to everyone! Hope everyone made it through the 'hump day' with no worries. We started the morning here with rainshowers, but it ended up being a beautiful afternoon and evening. Currency markets were similar to the weather here, as most currencies started Wednesday in the loss column vs. the US$, but rallied as the day progressed. The dollar had strengthened over the past couple of days due to 'safe haven' demand; but a surprisingly strong durable goods number (ex autos) combined with an 'all clear' signal from President Barack Obama had investors moving back into riskier assets. The commodity based currencies also got a boost as China signaled it would maintain an accommodative policy, easing speculation that the Bank of China would try to rein in bank lending. Lots to cover today, so lets get right to it....
  • Desperately Seeking Yield...

    In This Issue..

    * Currencies rally...
    * More on the BRIC's...
    * New Zealand's GDP contracts..
    * Bernanke gets grilled!

    Good day... And a Happy Friday to one and all! The end of what seemed to be a very long week... The last weekend in June, can you believe that? Next week, we'll be getting ready for the 4th of July celebrations! WOW!

    Well... What a volatile week it has been in the currencies! Up, down, all around, and settling back to levels that we saw before the Fed's FOMC meeting earlier this week. Suddenly, investors are looking for yield again... Looks like they are "Desperately Seeking (not Susan) Yield! And why not? The Fed, and the Bank of Canada (BOC) have come out and said that there will be no interest rate hikes until we've turned quite a few pages on the 2010 calendar....
  • 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....
  • Fundamentals Return...

    In This Issue..

    * Currencies & Gold move together!
    * Fed downgrades economic growth...
    * More on China...
    * Yen breaks the trading pattern...

    Good day... And a Tub Thumpin' Thursday to you! It's Tub Thumpin' here, as the warm winds of spring have finally sprung, the Cardinals have won two in a row from the rival Cubs, and I'm headed to Busch Stadium tonight! Oh! And fundamentals, as far as currencies and metals are concerned, seemed to be in place yesterday...

    That's right... The rout on the dollar was on (recall yesterday, Wayne and Garth playing street hockey... Game On!) and this time... Not only did the currencies rally VS the dollar, Gold and Silver took part in the proceedings too! It's been a long time since we've seen this happen... For the most part, whenever the currencies (minus yen) rallied, Gold would back off, and vice versa... Not yesterday! For the first time in a long time, the negativity toward the dollar was front and center BIG TIME!...
  • It's Cinco De Mayo!

    In This Issue..

    * A Huge currency rally...
    * The games people play now...
    * RBA leaves rates unchanged...
    * Brazilian real is the daily winner!

    Good day... Hola! And a Terrific Tuesday to you! Well, today is Cinco De Mayo... It's a fun day so go have some fun! A few years ago, I talked about Cinco De Mayo, and some guy took exception to it, and called me a really nasty name... So, I won't get all flowery about the day, except to say, go have some fun!

    Of course, to me, the saying 'go have some fun' is a staple of my being! Especially these days! I realize that I need to have "more fun", but work, and all that gets in the way, darn it! HA!...