Browse by Tags

Daily Pfennig

Blog Subscription Form

  • Email Notifications
    Go

Archives

  • The Markets Ignore Bernanke...

    In This Issue..

    * The dollar continues to get bought...
    * German Investor Confidence weakens...
    * The Carry Trade shifts to Japan again...
    * More deficit spending...

    Good day... And a Terrific Tuesday to you! Not a Terrific Tuesday for the non-dollar currencies though, as the overnight markets have marked them down once again, and favored the dollar... More on that in a minute... I got a chance to meet up with some old friends and co-workers last night, at a holiday party... I had to leave early though, my leg couldn't stand that long... UGH!

    OK... The daily noise, has the bias to buy going toward the dollar this morning... For some unknown reason, and I emphasize this here... The markets are not listening to Big Ben Bernanke, when he says that current near zero interest rates will remain for 'some time to come'... You see, the markets are under the impression that he's giving us a head fake, and will raise rates aggressively very soon, for the data that has printed recently is of the "need to raise interest rates before inflation takes the economy hostage" kind of stuff......
  • A Jobs Disaster!

    * Retail Jobs are cut in December! * Dollar rallies on renewed Trading Theme... * Looking for the Obama bounce... * High yielders get sold... ** A Jobs Disaster! Good day... And a Marvelous Monday to you! A grand weekend for yours truly with time spent resting, watching football, Alex play basketball, dinner with friends, and finally a wonderful dinner with my kids as we celebrated my oldest son, Andrew's, birthday. Whew! I'm at work about an hour earlier than usual this morning, as I couldn't sleep, and just decided to get up and come in... UGH! OK... Well, the big news this morning, is that the Jobs Jamboree was just awful, but "not as bad as some forecast" and therefore the dollar rallied. OK, I'm shaking my head in disgust too, but that's what the headlines reported later in the day on Friday, as the reason for the dollar rally. But let's get to the meat of the Jobs report... First of all, jobs lost in December were -525K, which was bang on the forecasts. But here's the two things I found to be very scary in the report... First of all, November's awful print of -533K was revised downward to -584K (recall, I questioned a month ago if it would reach -600K on the revision)... And here's the really scary number... -67K Retail jobs were cut in December... That's right, December! The month when retailers are supposed to be on fire!...
  • Iceland Melts Down...

    * RBA cuts rates 100 BPS! * Iceland to peg the krona... * High Yielders get whacked! * Gold rallies in the face of a strong dollar! ** Iceland Melts Down... Good day... And a Terrific Tuesday to you! Well... Folks... The wheels, what was left of them, are really coming off this economy. It's a sad sight to see, but it's happening nonetheless, and there's no bailout, stimulus check, mortgage bill, truck loads of money supply, or whatever, that's going to stop this recession bus.. Memo to Paulson and Bernanke... Don't throw yourself under this recession bus... Well... The dollar continued to push the envelope against a handful of currencies yesterday. Up front and center, the high yielders got beaten about the head and shoulders by the dollar. Aussie, kiwi, real, rand, all took major hits from the dollar. It was one of the worst days I can remember seeing for these currencies. This huge sell off showed two things going against the high yielders... 1. Commodities (other than Gold) are getting whacked, and 2. The Carry Trade is Dead......
  • Trichet Dashes Hopes of ECB Rate Cut...

    * Trichet dashes hope of rate cut... * Monster payroll numbers... * Japan leaves rates and appoints a new central bank head... * Game off for carry trade......