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  • 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!...
  • A Turn Around Tuesday!

    In This Issue..

    * Another Treasury auction today...
    * Goldman says to buy euros!
    * Oil fuels Commodity Currencies!
    * RBNZ to meet tonight...

    Good day... And a Wonderful Wednesday to you! Well... Yesterday was 'Turn Around Tuesday'! Add to that, the fact that there were a number of reasons for the euro to lead the charge for currencies VS the dollar yesterday. And... A word from one of the economists that I keep on my list of 'to read'... So, let's get to the tape from Turn Around Tuesday!

    I heard yesterday someone say 'well, we sure turned around today in the currencies'... And I thought, Shoot Rudy, why not name it Turn Around Tuesday? Then I went back to the history page on my trusty Bloomberg, and saw that on 4 of the last 5 Tuesdays, the currencies did in fact 'turn around' their performances from the day before! Not that this is something we can hand our hats on, and make trades accordingly on Monday nights / Tuesday mornings... But, it's an interesting fact nonetheless!...
  • Rising Treasury Yields...

    In This Issue..

    * Another Treasury auction today...
    * Spending habits come back to haunt reps...
    * Some healing in the currencies...
    * 10 Banks to repay TARP today...

    Good day... And a Terrific Tuesday to you! Well... I sure stirred up the hornet's nest yesterday... Some people didn't think I should express my opinion... But that's OK... Here's the skinny... I wrote yesterday about the farce that the jobs report was, and what a feeble job the media did in reporting the 'real numbers'... I then threw something in the Pfennig that I don't normally do, just to see what was more important to people... The fact that their Gov't lies to them, or the fact that they don't see eye-to-eye with me on the President...

    Given the response, I'd say that most had their eye on the ball with the jobs farce... And that's all I'm going to say from here on out......
  • Game On!

    In This Issue..

    * Risk Assets soar!
    * What's behind this stock rally?
    * Charts and fundamentals...
    * Aussie Consumer Confidence drops...

    Good day... And a Wonderful Wednesday to you! A total reversal of Friday's risk assets sell off was the soup du jour for Tuesday... This is beginning to remind me of a Wayne and Garth street hockey game... Here comes a car... Game off... Game on...

    So, as I just said, Tuesday saw the currencies trade right back to the levels they enjoyed VS the dollar last Thursday, before risk assets began to sell off on Friday. These are the types of trading patterns you normally see when the assets involved are getting ready for a break out... A jail break... Tonight there's going to be a jail break!

    OK, I'm not saying that the jail break takes place tonight, I just broke out in a song from the 70's... That's all... Seriously though, I hope we're seeing a return to fundamentals....
  • A Leak Of The Stress Tests?

    In This Issue..

    * Currencies trade in a tight range...
    * U.K. Budget announcement...
    * When will Treasuries follow Gilts?
    * Gold as a currency...

    Good day... And a Wonderful Wednesday to you! Another bad night for your Blues, which means their season has come to an abrupt halt... They are a young team, so they'll be back, next year...

    OK... The euro traded in a very tight range yesterday with a bias to sell dollars, but like I said, it was very tight... The Aussie dollar rallied very strongly during the day, adding over 1-cent to its figure. It sold back some of that 1-cent gain overnight though. As the upbeat stock session, immediately turned sour after the close... As I said yesterday, there was a lack of data to help the currencies along, and they had to rely on the earnings season for direction....