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  • Greece Is Back On The Front Page.

    In This Issue.

    * FOMC to meet this week.

    * Losing credibility?

    * Gold doesn't stay below $1,800 for long!

    * Getting ready for Operation Twist.

    ...
  • FOMC Day – 04/28/2010...

    In This Issue..

    * Euro goes into a tailspin...
    * Portugal gets downgraded...
    * Germans talk with IMF today
    * Aussie CPI indicates rate hike...

    Good day... And a Wonderful Wednesday to you... Today marks 1-week since I've been back writing the Pfennig... I simply love writing the Pfennig each day, and boy did I miss it when I was unable to write... Vacation is one thing, those are well deserved breaks, but to not be able to write is another. So... I'm thankful that I'm able to write again...

    Well... The euro went into a tailspin yesterday, and for once it wasn't Greece so much... This time it was a little Greece, and a lot Portugal. The ratings agencies downgraded Greek debt to junk... And they downgraded Portugal's debt from A- to A-2, with a negative outlook. The fear that Greek's debt problems would spread, is coming to fruition... The euro fell to a 1-year low during the day, and the selling didn't stop in the U.S!...
  • Another roller coaster day in the US...

    In This Issue..

    * Another roller coaster day in the US...
    * TIC data shows China and Japan losing their appetite...
    * Eurozone members support Greece...
    * Precious metals rise...

    Good day... We had a pretty busy day in the currency markets yesterday, with the dollar rising sharply in the morning only to sell off again after lunch. The selling continued in Asian trading, and the dollar index is back down to levels it was at this time yesterday morning. These roller coaster rides will probably continue as the markets just don't seem to know where to take the currencies. Short term moves will continue to be exaggerated, but the long term dollar continues to be in place.

    As I pointed out yesterday, this is a very busy week for data here in the US, and yesterday started us off with a bang. The volatile Empire manufacturing number showed a slight tick up but pretty much came in where it was expected. The more important Industrial Production and Capacity Utilization numbers followed, and both confirmed the US economy is continuing to recover; albeit at a slow pace. Industrial production increased .1% in February, and Capacity Utilization also increased to 72.7%. This data got the day started off right for dollar bulls, and the greenback shot up.

    ...
  • Game off for risk trades...

    In This Issue..

    * Dollar hits 3 month high...
    * Norges bank raises .25%...
    * Fed repeats call to keep rates low...
    * Inflation in India rises...

    Good day...And welcome to Thursday. Chuck started his Christmas vacation, so I have the honor of bringing you the daily missive for the next week or so. The dollar continued to gain strength throughout the day as investors waited on news from the FOMC. Overnight, Greece sustained another rate cut, this time by S&P, which caused investors to move back toward the 'safety' of the US$. The news caused the dollar to rally to a 3 month high vs. the Euro and post gains across the board. The currency markets are becoming a bit volatile again, and much of this volatility can be linked back to the return of a transaction which dominated currency markets over the past decade....