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  • Since When Is 1.7% U.S. Growth, Considered Good?

    In This Issue.

    * Euro holds gains.

    * Not so for global growth currencies.

    * Denmark has more ammunition to break peg.

    * Japan shrugs off bad data once again.

    ...
  • The sleeping lion awakens

    In This Issue...

    *Enter volatility...
    *It's all about the euro debt... 
    *Gold and silver knockdown... 
    *China and Japan chat...

    ...
  • Waiting On The "Grand Plan"..

    In This Issue.

    * Euro continues to be well bid ahead of Summit.

    * Bank of Canada hangs loonie out on a line..

    * Aussie inflation weakens.

    * What's Japan waiting for?

    ...
  • Austerity Plans Meet Voters In Spain

    In This Issue.

    * Euro gets sent to the woodshed.

    * Spanish voters not in the Austerity frame of mind.

    * China in talks to add Japan and S. Korea to their roster.

    * 872,000 foreclosed homes, with 1-million more to come.

    ...
  • A$ Gets Flooded.

    In This Issue.

    * Mantega calls for an end to real rally.

    * Japan keeps us with the Joneses.

    * Euro to form a resistance line?

    * Revisiting history?

    ...
  • 13% increase in mortgage applications, but no help for housing.. .

    In This Issue..

    * Double digit increase in mortgage apps, but no impact on housing...

    * Euro is in a rut...

    * Pound surges higher...

    * Japan complains about weaker currencies...

    ...
  • Risk Off as US data disappoints…

    In This Issue..

    * Risk is back off on poor US data...
    * Euro pauses at $1.32...
    * China moves by Japan to become #2...
    * Gold moves close to $1,200...

    Good day...and welcome to Wednesday, or as we call it on the desk 'hump day'. Yesterday was another busy day on the desk, it seems like investors are finally figuring out that in spite of the uncertainty in the markets, there are still some good opportunities. But while the flow of trades increased yesterday, the currency markets took a breather from their torrid pace on Monday.

    What movement did occur yesterday was mainly due to a plethora of data releases in the US which mostly disappointed. Personal income and spending in the US were both reported unchanged for the month of June, and May's numbers were revised slightly lower. And while US consumers were feeling the pinch, prices rose a bit more than expected with the PCE Deflator moving 1.4% higher vs. an expected 1.3% increase. So it was no surprise when the ABC Consumer Confidence number came in at -50, again worse than what was expected....
  • Moodys Again...

    In This Issue..

    * Currencies are mixed VS dollar...
    * Canadian credit & economy on the mend!
    * China to print a very strong GDP number?
    * Gold is back above $1,200....

    Good day... And a Terrific Tuesday to you! I'm writing from home this morning, because I go back to the Ocularist this morning to have more work done on my new 'eye'... I didn't sleep worth a darn last night, and I think I just had this visit on my mind.

    Well.. Speaking of something on one's mind.. Or, more like a case of too much too little too late, Moodys announced overnight that they were downgrading Portugal's debt rating, 2 levels to A1... I don't want to get started on these ratings agencies again, they have become as useless as a pay toilet in a diarrhea ward! Ok... That probably wasn't too good to start off today's letter with a saying like that, but... It's what my fat fingers typed, so it stays!...
  • Big Al Talks Deficit Financing...

    In This Issue..

    * Currencies hold gained ground VS dollar...
    * Swiss franc really shines!
    * Japan borrows a line from the U.S....
    * The Labor problem grows...

    Good day... And a Happy Friday to one and all! A Fantastico Friday, especially if you are a Los Angeles Lakers fan! Me? I've always been a fan of the Celtics, but since it's a long distance directory assistance relationship, it's not that big of a deal to me that they lost. When I was a kid, the Hawks were in St. Louis, and we won a championship, with Bob Pettit... OK, I was only 3... But my dad loved to talk about it!

    Well... We've had a day where the currencies gained VS the dollar, and then held their ground, for the most part... No profit taking, no debt crisis fears trading, just held their ground VS the dollar... Now, some would say... 'that's a sign that they've hit resistance and can't overtake it, which is not good for a rising asset'... But, me? Well, I would say, and will say... 'I find this to be refreshing. The last thing you want to see is an asset, which in this case is a currency like the euro, run up too much, too fast, for that WILL give the markets reason to sell. I prefer the slow gradual, stealth-like moves in currencies, so that they don't gain any attention, until the rally is well established.'

    ...
  • Jobs Disappoint Again!

    In This Issue..

    * Euro falls below 1.20...
    * Did we have negative "real" job creation?
    * Canada's labor market is strong...
    * G-20 yields nothing...

    Good day... And a Marvelous Monday to you! It was a wonderful jam-packed weekend for yours truly, and when the alarm went off this morning, I had a greater appreciation for 3-day weekends!

    Well... Friday, when I was signing off, I said that suddenly the currencies were getting sold... At that time, it looked as if it might be short-lived... But NOOOOOOOOOOOOOO! This was an all-out assault on risk, folks... At when the dust settled in the early afternoon, the euro had fallen below 1.20, for the first time since 2005, and everything other currency was getting whacked too... For the first time all week though, Gold rallied......
  • Bank of Canada Is First in G-7 To Hike Rates!

    In This Issue..

    * Euro's rally fizzles out...
    * Rates hikes are not over in Australia!
    * Japanese PM quits!
    * Brits offer advice to Greece.

    OK... Yesterday, I told you that the Bank of Canada (BOC) would meet today, and raise rates... Well, I got that 1/2 right! UGH! The BOC did raise rates, but they did it yesterday! Yes, the BOC became the first Central Bank in G-7 to raise rates, 1 1/2 years after the financial meltdown. The BOC tried to play down the move, by saying that they were not entering a rate hike cycle that would yield rate hikes meeting after meeting... But, with GDP, as reported here yesterday, running at 6.1% annualized, there are more rate hikes to come... It just won't be meeting after meeting... The BOC will sprinkle the fairy dust here, and a little there, some for themselves, and a little for us... A little more for them... HA!...
  • SNB Is Wrong!

    In This Issue..

    * Euro rallies...
    * Risk returned during Tuesday's U.S. session...
    * Gold rises above $1,200 again...
    * Italy announces Budget Cuts...

    Good day... And a Wonderful Wednesday to you! I go back to the eye surgeon today... If it all looks good, then I go to see the Ocularist, who will hand paint a shell to go over the prosthesis that replaced my eye. The shell will match my right eye, and I won't look so 'creepy' as my beautiful bride says, anymore... Funny? Yes, but creepy... No!

    OK... What a strange pattern we seem to be in the past few days of trading... It used to be the overnight markets would run the currencies up VS the dollar, and the U.S. session would knock them back down... That's reversed these days. Yes, the overnight markets have been pushing the currencies down, and the U.S. session has been picking them up......
  • Now It's Spain...

    In This Issue..

    * Euro drops 2-cents overnight...
    * All Risk is taken off the table today...
    * Geopolitical problems steady Gold...
    * The Budget Cuts just keep coming!

    Good day... And a Terrific Tuesday to you! Well, it was almost a "perfect ride" to work this morning, as I hit all the green lights until the very end! UGH! See, it doesn't take much to make me happy!

    The euro's green light ended last night too, as 'Now It's Spain' (NIS)... As I was packing up to go home yesterday afternoon, the euro had moved beyond 1.24, and I said, 'I wonder what's got the euro so perky this afternoon'... Well, that 'perky' feeling the euro had at that time was wiped out and more by fears that Spain's problems are now going to take center stage... Greece is an afterthought at this point, now it's Spain......
  • A Jobs Jamboree for Friday 01/08/2010...

    In This Issue..

    * The dollar holds gains...
    * Japanese saber rattling...
    * Geithner in trouble?
    * Commercial Real Estate in trouble...

    Good day... And a Happy Friday to one and all! The first Friday of 2010! So, let's call it a Fabulous Friday, and save the Fantastico for a day when we'll see the temperature at least reach the freezing mark! Our 'snow day' is over, everyone was safe...

    You see, and I hope you don't mind me taking this trip in the past, many years ago, I spend a winter of discontent, I might add, in Des Moines, Iowa... Where it began snowing in November and didn't stop until the first week of May... When I first moved there, I noticed that their street crews didn't plow the roads, and salt them like they did in St. Louis, they just threw cinders on the snow and people drove on it. That's where I really learned to drive on snow... As the years went by, back in St. Louis, dealing with snow, I realized that the way they did it in Des Moines was better!...
  • Risk Returns...

    In This Issue..

    * Currencies maintain their gains...
    * Aussie and real jump higher!
    * U.S. manufacturing is stronger...
    * Following Japan...

    Good day... And a Terrific Tuesday to you! Wow, it's cold here! I had to stop for gas this morning, and had some very bad thoughts about Al Gore, while standing there! That's funny! And, as one of my fave comedians says... 'that's funny, I don't care who you are!' HA

    Hey! I exchanged emails with the Mogambo Guru yesterday... He's such an interesting person! He's enjoying his time away from writing, playing golf, and spending his profits from Gold! If you need a Mogambo fix, you should check out this web site: www.bringbackmogambo.com

    OK... The first trading day of 2010, was interesting, as it certainly looked like risk was back on the table, and the Emerging Markets, and any currency that has some yield, were the beneficiaries of this return to risk taking. It certainly didn't take traders long to get back to dissin' the dollar in favor of these risk assets...I will warn you about this first day of the year move... Let's see if it carries through the rest of the week... If so, then the risk taking bus is about to leave the station, you might just want to be on that bus!

    ...