Browse by Tags

Daily Pfennig

Blog Subscription Form

  • Email Notifications
    Go

Archives

  • Consumer Confidence Tumbles...

    In This Issue..

    * Currencies range trade
    * Aussie CPI prints soft...
    * RBNZ to hike rates tonight...
    * Oil drop pushes loonies lower...

    Good day... And a Wonderful Wednesday to you! I'm writing from home again this morning, as I have to deal with my car again. They told me it was fixed, I drove it about 10 miles to find out it wasn't! UGH! I must have the guy that failed 'car repairs' 10 times before passing...

    OK... The currency action yesterday was, while range traded, up and down, and all around. Yesterday morning I told you that the euro had broken above 1.30, and I would check it to see how long it remained there... Well, this time it was more than 10 minutes, and the euro rose to 1.3040... But then the rug was pulled from under the single unit, and it was back below 1.30 it went... In fact, it fell to just above 1.29, before then turning around once again and heading higher, eventually ending the day at 1.30....
  • RBA Raises Rates!

    In This Issue..

    * Pandora's Box of rate hikes is opened!
    * Is the dollar being removed from oil trades?
    * Deficits do matter, eh?
    * Gold heads toward its all-time high...

    Good day... And a Terrific Tuesday to you! A Tuesday morning that is seeing a HUGE currency rally VS the dollar on the news that the Reserve Bank of Australia (RBA) opted to go ahead and hike rates now, and not wait for November's meeting, as I had thought they would do! WOW!

    The first hike... It has opened Pandora's Box of interest rate hikes around the world... For, if the RBA went this soon, then we can expect Norway's Norges Bank to push their rate hike earlier on the calendar, maybe even later this month! And they won't be the only ones! Look for New Zealand to hike rates this year, and who knows what other country (Brazil?) will follow after that... But I see them coming, and they're marching the death march of the dollar!...
  • 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....
  • Fighting Deflation Instead of Inflation?

    * A bounce in the euro overnight... * Iran tests long range missiles... * Japan's Machine Orders soar! * Is Big Ben giving us a hint? ** Fighting Deflation Instead of Inflation? Good day... And a Wonderful Wednesday to you! Things settled down a bit yesterday, with the rumors of bailout for Fannie and Freddie Macs fading, and some awful Housing data being swept under the rug. The dollar gained back the ground it had lost to the euro the previous day, and Japan printed a very strong Machine Orders report... And now Iran tests long range missiles... All that and more as we begin our Wednesday... OK, front and center this morning... The Housing data from yesterday. Since the media decided to sweep this under the rug, I thought I would make certain that at least Pfennig Readers were aware of the rot on the Housing vine. The index of Pending Home resales fell -4.7% in April, a much larger decline than the "experts" forecast. I think what you're seeing here is simply that would be buyers are holding off as they expect further declines in prices.....
  • Housing Starts Still Collapsing!

    * Nearing an all-time drop in Housing... * Mishkin says rates can go lower... * Gold continues to recover... * Oil hits $115!...
  • ECB and BOE Leave Rates Unchanged...

    * ECB and BOE leave rates unchanged... * Data not nice to US$... * NZD also leaves rates alone... * Oil hits a record......