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  • Frightened investors move back into US treasuries.....

    In This Issue..

    * Jobs data skewed by 'seasonal adjustments'...
    * BOE surprises the market...
    * Oil falls below $60...
    * China's reserves continue to grow...

    Good day...Chuck has a bevy of doctor's appointments today, so he decided to let me take over the Pfennig. Unfortunately it will go out a little later than usual, as I always struggle to get all of my thoughts together so early in the morning. Its not that I come in late (I was here two hours before everyone else) but it just takes me much longer than Chuck to get it all on paper. But enough of the excuses, I've got to get writing.

    Weekly jobless claims released in the US yesterday morning fell below 600k for the first time since January but the continuing claims continue to rise, hitting another record. The slight improvement in the weekly numbers was distorted by the automotive sector. Car companies typically shut down plants in early July in order to change over to the new model year. Bankruptcy forced many of these plants to shut down much earlier than normal, and some temporarily started up production again during the past few weeks....
  • Inauguration Day 2009...

    * Rogers and Roach... * Dollar gaps higher! * Ireland's problems... * Bad data... ** Inauguration Day 2009... Good day... Well... And a Terrific Tuesday to you! I got to enjoy a nice restful 3-day weekend. I realize not everyone got yesterday off, so I won't carry on about it. Can you believe it? The St. Louis Cardinals Football Team A.K.A. The Big Red, no wait, Chuck, they left town 20 years ago... OK, the Arizona Cardinals are going to the Super Bowl? When they were here, I never thought I would live to see the day... Front and Center this morning, I have two quotes from people I truly respect... first from Jimmy Rogers... second from Stephen Roach... If I were you, I would be worried about the U.S. dollar,' said Rogers, 66, in a speech at the Asia Financial Forum in Hong Kong today. 'The Americans are printing U.S. dollars. The Americans are going to do whatever they can to revive their economy, even if it means destroying the U.S. dollar.'...
  • Another Jobs Jamboree Friday!

    * A zero rate conspiracy? * Weekly jobless claims head toward 500K... * Turning Japanese... I really think so! * Mr. Yen speaks! ** Jobs Jamboree Friday! Good day... And a Happy Friday to one and all! I hope it turns into a Fantastico Friday, because it's not starting out that way. Technical difficulties would be the term used to describe my morning so far... I don't know if the Pfennig will go out on time this morning, as those "technical difficulties" have me working offline right now. But we'll see, eh? Well, it's a Jobs Jamboree Friday too! This should be quite the Jobs Jamboree too, as the ADP Employment report suggested the other day that this data could be even worse than the forecast -200K job losses for October. There have been more job losses in 2008, than you can shake a stick at, but yet the beat goes on for the dollar. Coming To America is the theme playing out in the currencies... Of which, I've explained over and over again, until I sound like a broken record....
  • Fed not as hawkish as expected...

    * Fed not as hawkish as expected... * Markets now turn to ECB and BOE... * Canadian dollar slides... * Aussie hit by 1-2 punch.. ** Fed not as hawkish as expected... Good day...I want to start off today's Pfennig by apologizing for those of you who were waiting to receive their Pfennig yesterday. I sent it off at the normal time, but we had some problems with the program which sends it out, so it was delayed in getting delivered. You can always view the current Pfennig at www.dailypfennig.com where we post it first thing in the morning. That website also has archived versions of past pfennigs for your reading pleasure! They tell me the problem has been fixed, so you should get this pfennig right on time. The dollar drifted higher throughout most of the day yesterday as the markets prepared for the FOMC rate announcement. The sentiment driving the dollar higher was that the Fed would sound much more hawkish in order to keep an overall consensus among the FOMC members. Dollar bulls were expecting a signal from Bernanke that an increase in interest rates would be just around the corner. These higher interest rate expectations encouraged traders to take the dollar index back up to just under 74, a level we haven't seen in almost two months....
  • Jawboning The Dollar Higher...

    * More bias to buy dollars... * Printing money... * Kiwi gets hit hard! * Rate announcements today......