Browse by Tags

In This Issue..
* Bernanke sees rates remaining low...
* Greece continues to weigh on the euro...
* Yen climbs vs euro...
* India's economy expands...

Good day... We finally got a bit of the volatility we've been looking for yesterday, as the markets moved dramatically as the Fed Chief testified before congress. But overnight the Asians had a different opinion and moved the dollar back up. So the currency markets were pretty much like a roller coaster ride, moving dramatically up and down but ending up pretty much right back where we started. I'll begin where we left off yesterday, the Fed Chairman's testimony to the House Financial Services committee.

As we expected, the Fed Chairman told the committee members that Fed will keep interest rates near record low levels for several more months as the 'nascent' recovery remains fragile. The dollar immediately sold off as currency traders who had bet on an early jump in US interest rates reversed their dollar long positions. But in taking a page right out of Greenspan's book, Bernanke tried his best to play to both sides of the House, saying that 'Private final demand does seem to be growing at a moderate pace....' and telling the congressmen that the Fed will need to start tightening policy 'at some point'....

In This Issue..

* Euro at one-month low... * Trichet talks rate cuts... * Riksbank & Bank of Canada this week... * The Mogambo on a Monday!

Good day... And a Marvelous Monday to you! Today is a special day, in that it is the Big Boss Frank Trotter's birthday! Happy Birthday Boss! Actually Frank is more of a very good, long time friend, mentor, and then boss. We've worked together for a very long time... I tell people at shows that Frank and I do together, that we've been working together for so long... The Dead Sea wasn't even sick when we began working together! HAHAHAHAHAHA!

OK... A bad day a the office for the euro and other currencies on Friday, and then last night in the overnight markets... European Central Bank (ECB) President, Trichet, once again deep-sixed the euro with talk of further rate cuts. He did attempt to water down the message by saying that "any rate cuts would be measured 25 BPS cuts" Memo to Trichet... It doesn't matter what the size of the debasing is, as long as you are going to debase your currency, the markets will make you pay for it!...