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  • Fed spillover effect.

    In This Issue.

    * The dollar was king for another day

    * South African sales disappoint

    * Norway reduces rates

    * Gold and silver took another hit

    ...
  • Judgment day has arrived for Euro banks…

    In This Issue..

    * Judgment day for European banks...
    * US data beats estimates, but is still bad...
    * South Africa leaves rates unchanged...
    * Fannie and Freddie still in limbo.

    Good day. And welcome to what hopefully will be a fabulous Friday for everyone. I know it will be a good one for me, as I am heading out the door as soon as I get this written. My son is playing in the Show Me Tournament this weekend which is Missouri's little league state championship. Should be a fun weekend of baseball, but a bit hot as temperatures are expected to stay right around the triple digits...
  • Bias To Buy Dollars Remains In Place...

    In This Issue..

    * Some healing in the currencies...
    * What's a dead cross?
    * Norway, S. Africa and Norway rally...
    * U.S. deficit spending continues...

    Good day... And a Terrific Tuesday to you! I'm Back! Boy, was that ever a great idea that our little Christine had a couple of weeks ago, when she heard my schedule... 'you should take off that Monday'... Yes sirree Bob! That was the best idea I've heard in a month of Sundays! So... As you can see, or will see soon, I'm full of you know what and vinegar this morning... Let's get going on this Terrific Tuesday!

    Well... Front and Center this morning, the non-dollar currencies have seen some healing... Some, not much, but some... But these mini-rallies are on tenterhooks folks, they can be reversed in a New York Minute... And, now that I look back at the screens, that's exactly what's happening! UGH! These turn-arounds are beginning to give me a rash!...
  • Bernanke sticks to his script...

    In This Issue..

    * Bernanke sticks to the script...
    * Pound sterling comes under pressure...
    * China starts shopping for assets...
    * BRIC MarketSafe lights up the phones...

    Good day... We had a very busy day on the desk yesterday, as our newest MarketSafe offering, based on the BRIC currencies, is making the phones ring off the hook. But while we were busy, the currency traders had another slow day as the dollar just drifted throughout the day. The return chart for the last 24 hours shows only one currency made more than a .5% move vs. the US$; and that was the South African Rand which increased .75%.

    The markets were watching Ben Bernanke's congressional testimony through most of the day, but those waiting for a surprise were disappointed. Bernanke stuck to the script which he had laid out the day before in the Wall Street Journal, and the members of the House Financial Services Committee couldn't get him to commit to any 'new' stimulus programs. Bernanke said the economy is showing 'tentative signs of stabilization' but the central bank intends to continue to maintain its 'highly accommodative' monetary policy for 'an extended period'. He indicated that the Fed stands ready to tighten policy, but only after the economic recovery takes hold and pressures holding down inflation diminish....
  • Maybe, Just Maybe A Break In The Link?

    In This Issue..

    * Currencies consolidate...
    * Brazil posts a surplus!
    * Dr. Marc Faber speaks...
    * High yielders rule!

    Good day... And a Wonderful Wednesday to you! A very tight trading range day was in place yesterday for the currencies... In yet another sign that maybe, just maybe, because you never know, the currencies could be breaking their link to stocks... U.S. stocks jumped 196 points yesterday, and the currencies range traded... Hmmm....

    Not that this will become a 'stock jockey journal'... Stocks jumped on the news that Consumer Confidence surged this month... Talk about looking at things through rose colored glasses! Any way, Consumer Confidence surged... Better to have blips in Confidence than to be all negative all the time I guess! I also guess the stock jockeys took what was behind door number 1 (consumer confidence) and not was what behind door number 2, which was the Case-Shiller House Price Index......
  • ECB rate decision looms...

    In This Issue..

    * ECB rate decision looms...
    * China pushes for a bigger seat at G20...
    * Declining global reserves hurt US Treasuries...
    * Commodity currencies come back...

    Good day... The dollar held on to its gains through out most of the day yesterday, as investors continued to look for a parking place in the volatile markets. But late in the day, the sentiment changed and the dollar started getting sold vs. most of the currencies. This dollar weakness continued overnight with the Euro gaining back 1 cent to trade back above 1.33 and the commodity based currencies of Norway, New Zealand, Australia, and South Africa all gaining over 1 percent vs. the greenback.

    What caused this sharp turn around? I had to look hard to find anything which set this reversal in motion, and could only find references to the upcoming ECB rate decision due on Thursday. The euro had come under selling pressure the past few days as currency traders bet the ECB would be cutting rates by 50 basis points on Thursday. This cut would, of course, narrow the yield advantage the Euro holds over the US$ and therefore make it less attractive to investors. There were also many who believed the ECB should follow the path of the US, UK, and Japan and begin using quantitative easing to further force down rates....
  • Big Al Is Upset!

    * Currencies rally a bit overnight... * U.K. data sends sterling lower... * Pooled precious metals... * Oil hits $109!...