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  • Waiting On The RBNZ...

    In This Issue..

    * Currencies trade in a tight range...
    * Fed to keep rates unchanged till 2011?
    * Brazil GDP soars 9%!
    * Another glut of Treasuries to auction...

    Good day... And a Wonderful Wednesday to you! I had a first today on the way to work... I hit every green light! Now... I'm sure you are wondering why I would even have green lights at this hour of the morning... Me too! But they are there! And it was smooth sailing into work today... YAHOO!

    OK... Let's get serious, serious... The currencies traded in a tight range yesterday, with a brief mini-rally in euros, as the single unit rallied to 1.20, but that was short-lived. The rumor going around was that the Swiss National Bank (SNB) was intervening...

    ...
  • Stepping Up On The Soap Box...

    In This Issue..

    * Euro continues to get sold...
    * Freddie Mac needs $10 Billion more!
    * Auctioning another $80 Billion in Treasuries...
    * Norges Bank does the right thing!

    Good day... And a Tub Thumpin' Thursday to you! I don't really have a reason for it to a Tub Thumpin' Thursday, just thought it would be good to get going into the weekend early! I'm slowly getting back into the swing of things here. There's a parking issue that's got me so ticked off right now, but that's not what you came to read about, so... Let's get going!

    Well... The rout that was on with the euro continued for most of the morning yesterday, but then suddenly, it stopped, and we saw the currencies & Gold turn around... It was just like I had said the day before, that the euro would probably reach oversold levels, and we could see a mini-rally... And we did!...
  • The Fed Keeps The "Extended Period" Wording...

    In This Issue..

    * Spain gets downgraded...
    * Fed keeps rates unchanged...
    * Interest rate differentials are back in play!
    * RBNZ keeps rates unchanged...

    Good day...And a Tub Thumpin' Thursday to you! What a great evening of jazz music last night, with my little buddy having two guitar solos in two of the 4 songs played...

    Well... No amount of soothing words from Germany was going to stop the tailspin of the euro yesterday, after S&P downgraded Spain's debt now... It's a European debt pandemic according to the people selling the euro like funnel cakes at a State Fair.

    The Euro states have to feel like they are getting treated like a red headed stepchild... (Ok, it's just a saying folks) by the ratings agencies... The PIIGS (Portugal, Italy, Ireland, Greece and Spain) are falling like dominoes that were all lined up......
  • German Investor Confidence Fades...

    In This Issue..

    * The dollar rallies on weak German data...
    * Stronger overall data for the U.S. last week...
    * JAL files bankruptcy and yen rallies...
    * Bank of Canada meets today...

    Good day... And a Terrific Tuesday to you! I hope you all had the opportunity to enjoy a 3-day weekend... I realize that not everyone has the opportunity, so I don't want to sound like I'm rubbing it in... It's really foggy outside this morning. I live in a little river town outside of St. Louis, and we get fog there all the time, but once I cross the river, it dissipates quickly... But not this morning, the fog was with me all the way to work! Something right out of an old-time horror movie with Lon Chaney...

    Well... Yesterday, I was doing quite a bit of reading, after suffering 'football overload', which by the way, were not very good games... Sure, good for the winning teams' fans, but I didn't have a dog in any of those fights, so I just wanted to see a good game, only to be disappointed... OK, now back to my reading...

    I was reading a good, thoughtful story about how currency swings could be dying down, as we return to fundamentals... You know, me... I jumped from my chair, and click my heels together in joy! OK, no, I'm not physically able to do that any longer, so I did it in my mind! But a return to fundamentals? I'm all over that like a cheap suit! One of the fundamentals that the story highlighted that would be taken into consideration by traders, would be interest rate differentials... Which, I've always considered to be a strong reason to own a currency, but not the 'end-all'......
  • Cautiously Positive?

    In This Issue..

    * Euro & yen add to gains...
    * RBNZ disappoints...
    * Foreclosures continue to stack up!
    * BOE & BOC meet today...

    Good day... And a Thrillin' Thursday to you! Ahhh! A change! Just thought that with the thrilling victories my beloved Cardinals have been accumulating, that Thrillin' would be a nice change to our Thursday lineup!

    Front and Center this morning... The currencies added to their gains this week yesterday, albeit small gains, but gains nonetheless. The Fed's Beige Book was 'cautiously positive'... And... Overnight, the Reserve Bank of New Zealand met, and left rates unchanged as suspected... This and more as we begin our Thrillin' Thursday!...
  • A Turn Around Tuesday!

    In This Issue..

    * Another Treasury auction today...
    * Goldman says to buy euros!
    * Oil fuels Commodity Currencies!
    * RBNZ to meet tonight...

    Good day... And a Wonderful Wednesday to you! Well... Yesterday was 'Turn Around Tuesday'! Add to that, the fact that there were a number of reasons for the euro to lead the charge for currencies VS the dollar yesterday. And... A word from one of the economists that I keep on my list of 'to read'... So, let's get to the tape from Turn Around Tuesday!

    I heard yesterday someone say 'well, we sure turned around today in the currencies'... And I thought, Shoot Rudy, why not name it Turn Around Tuesday? Then I went back to the history page on my trusty Bloomberg, and saw that on 4 of the last 5 Tuesdays, the currencies did in fact 'turn around' their performances from the day before! Not that this is something we can hand our hats on, and make trades accordingly on Monday nights / Tuesday mornings... But, it's an interesting fact nonetheless!...
  • Who's Foolin' Who?

    In This Issue..

    * Jobs Jamboree gets a lift...
    * The real numbers...
    * The dollar comes back with vengeance!
    * RBNZ to meet this week...

    Good day... And a Marvelous Monday to you! You know the Jobs Jamboree data that printed on Friday, and created some HUGE euphoria among the media types that love to just "read the news" and not actually do the research to report it? Yes... It was a very good number, on the outside... Not that losing 345,000 jobs in a month is a good thing, but it is far better than the near 700,000 jobs lost a couple of months ago.

    So... I've got that to talk about today... And the rebound by the dollar that has taken the euro to the 1.38 handle and looking as if it is going to go lower... And, then finally, I have to get on my soapbox again, because I don't think I want my President calling me names! So, all that and more as we begin this 2nd week of June......
  • German Business Confidence Falls...

    * The euro gives back 1-cent... * The Economist agrees with Chuck! * RBNZ takes a shot at kiwi... * FOMC week! ** German Business Confidence Falls... Good day... And a Marvelous Monday to you! Friday turned out to be Fantastico, as I hoped it would, and it ended with a nice surprise retirement party for long colleague, John Kaupisch. I couldn't talk about it Friday, because it was a surprise... But it was real nice, and John was surprised... His last day is July 3... First guy to retire here... I'll probably be the next, but with a 13-year old, I doubt that happens any time in the near future! The currencies held steady Eddie on Friday, with the euro popping up to 1.5660 at one point, only to end the day around 1.5620. Still, a nice day given all the negativity the euro had been receiving because of the Fed's rhetoric, and other minor stuff in the Eurozone... Overnight though, the euro has gotten treated like a red headed step child (OK no nasty comments, it's just a saying). The German Business Confidence as measured by the think tank, IFO, fell to the lowest level in more than two years this month... Business leaders are feeling the pinch of record Oil prices and the threat of higher interest rates....
  • Reigniting Fears...

    * Risk Aversion returns! * Central Bank meeting week... * Looking at dollar / euro... * CFTC gets investigated......