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Have You Seen This?

  • Waiting on the FOMC meeting...

    * FOMC to cut further... * Bernanke turns his back on inflation... * Kiwi and Australia rally... * Gold continues to shine... ** Waiting on the FOMC meeting... Good day...and welcome to another week, hopefully the currency markets can continue their assault on the dollar which began a few weeks ago. The dollar index peaked back on November 21, and with the exception of a few days around the beginning of December, the greenback has consistently fallen vs. most of the major currencies. Friday was no exception, and the dollar continued to give back gains over the weekend with the Euro climbing back over $1.35 for the first time in two months....
  • Paulson speaks with forked tongue...

    * Paulson speaks with forked tongue... * Fed leaves rates unchanged... * A look back at the data... * Japan to weather the financial Tsunami... ** Paulson speaks with forked tongue... Good day...Another day, another $85 billion of US taxpayer used to bail out an ailing financial firm. Yes, our Treasury Secretary went on another shopping spree, and this time he was accompanied by Fed Reserve Chairman Ben Barnanke. Just two days ago, Paulson drew a line in the sand when he let Lehman Brothers collapse into bankruptcy. The non-action from Paulson was seen as a good move by most, as he was sending a signal to the markets that the US taxpayer couldn't be seen as the buyer of last resort for failed financial firms. And Paulson talked tough with regard to AIG. Paulson was asked about reports that AIG wanted an emergency loan to help it through its troubles. "What is going on right now in New York has got nothing to do with any bridge loan from the government," he replied. "What's going on in New York is a private sector effort, again, focused on dealing with an important issue that's, I think, important that the financial system work on right now, and there's not more I can say than that....
  • Congratulations to Chuck...

    * Great news from Chuck... * FOMC could lower rates... * TIC flows to slow... * Yen and SFR continue to rally... ** Congratulations to Chuck... Good day... I want to start this mornings Pfennig off with a note Chuck sent the trade desk last night: "The doctor called, and I'm CLEAN! My scans were clean, and, I'm officially off the Sutent, and considered a "Cancer Survivor" now! YIPPEE!" I know the markets are in a state of turmoil, but that great news from Chuck took precedence over anything I could write about the currencies. It looks like Chuck's positive attitude along with all of our prayers have beaten back the cancer (I guess his doctors and the new medicines deserve some of the credit also). Congratulations to Chuck, can't wait to shake his hand when he returns from the first week of the FXU tour. But now lets move on to the markets. I was so focused on the Wall Street turmoil yesterday that I failed to mention the FOMC will be meeting today. Just a few weeks ago, the markets were calling for an interest rate increase by the Fed to tackle inflation. But the events of this past weekend, along with a dramatic drop in the price of oil, has many calling for another interest rate cut. The Central Bank has already injected billions of money into the markets to try and calm them after the bankruptcy of Lehman. The Federal Reserve yesterday added $70 billion in reserves, the most since the September 2001 terrorist attacks. The funds were needed as banks and financial firms tightened up their lending in reaction to the financial turmoil....
  • Calling Out The Fed...

    * TIC's look funny... * Germany's ZEW is weaker... * A note from the Washington Post! * Tons of data today... **Calling Out The Fed... Good day... And a Terrific Tuesday to you! Well... Someone from the Washington Post is a Pfennig Reader (I think!), as there was a great article in the paper calling out the Fed on their "rate hike" rhetoric... I'll give you snippets of that, and a snippet from my friend, the Mogambo Guru, along with the usual currency talk, on this Terrific Tuesday... Ready, set, let's go! Front and Center this morning is the dollar getting sold all day yesterday, as the euro recovered all the way to 1.5515 in the overnight markets. Unfortunately, the single unit was stopped in its rally tracks by an awful printing of German Investor Confidence, as measured by the think tank ZEW... German Investor Confidence dropped to the lowest level in 15 years this month, as rising inflation is eating away at the economy. I don't expect this report to put too much a dent in the single unit's performance today, but for now it has slipped back below 1.55......