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  • A Trading Pattern For Gold...

    * The currencies rally back! * The risk takers are back! * Mixed bag of economic reports... * A 'cross thing' for sterling... ** A Trading Pattern For Gold... Good day... And a Wonderful Wednesday to you! No ice this morning, thank goodness! Winter, in my mind, is bad enough without the slip-sliding away! Snow is one thing, ice is another and it's not high on my Hit Parade! Well, front and center this morning is a rally in the currencies that began yesterday mid-morning, and has carried through the Asian and European markets. I'd tell you why the euro is 2.5 figures above yesterday morning's level, but you'd laugh at me... No wait! That's what you're supposed to do, Chuck, tell the people what's going on! HA! Seriously though... I don't think you'd laugh at me, maybe the dolts that run trading floors around the world, or the pundits that write stories about the markets, but not me!...
  • Fed floods the markets with US$...

    * Bernanke gets help opening the spigot... * Euro and Pound rally... * Yen to continue to benefit from carry reversals...* Aussie $ rallies... ** Fed floods the markets with US$... Good day...and happy Columbus day! This is an official bank holiday here in the states, so all of the banks are closed, but the stock markets are open. We will have a half day here on the desk to try and catch up with all of the work which has been piling up the past few weeks. The phones are turned off, since it is an official bank holiday, but we will be checking messages and try to get back to everyone as quickly as possible. It is a very unusual holiday, as the banks are all closed with no funds transfers possible, but the stock markets are open. Currency desks are lightly staffed, so we will have to really work to get the trades done this morning. These strange holidays usually can lead to some real market volatility, and with today will probably be another rollercoaster. In an all out effort to ease the credit freeze, the Federal Reserve recruited help from the ECB, Bank of England, and the Swiss central bank to flood the market with US$. These central banks will auction unlimited dollar funds with maturities of seven days, 28 days, and 84 days at a fixed interest rate. This move is unprecedented, as all previous dollar swaps were capped at a maximum amount while these auctions will be for unlimited funds....
  • Profit Taking Dominates The Day...

    * Dollar faces Dynamic Duo this week... * RBA leaves rates unchanged... * Comparing decades... * Tankan is somewhat positive... ** Profit Taking Dominates The Day... Good day... And a Terrific Tuesday to you! In keeping with Pfennig tradition, I begin each July with words from one of my fave bands of the 70's, Uriah Heep... There I was on a July morning... (I could go on, but you get the point.) Well, the profit taking that I talked about yesterday morning, continued for most of the morning yesterday, causing the euro to fall from the 1.5810 level I saw when I turned on the screens, to the low 1.57 area. It had to be profit taking because why would anyone buy dollars VS euros as a long time investment, with the dynamic duo of the Jobs Jamboree and an ECB rate decision staring the dollar bulls right in the face this week......