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  • Questions continue regarding the Cyprus bank rescue...

    In This Issue.

    * Investors continue to worry about the Cyprus bank rescue...

    * King wants more stimulus for the UK economy...

    * Yen gets back to its downward spiral...

    * Gold sees some buying on fear...

    ...
  • Retail sales in the US set the tone for trading today...

    In This Issue.

    * Retail sales set the tone in today's markets...

    * Euro falls below $1.30...

    * UK in danger of Triple Dip...

    * Mexico gets a boost from S&P...

    ...
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  • Waiting on the Fed.

    In This Issue.

    * ECB and Fed to show their hands

    * Global data shows a wider slowdown

    * UK data continue to disappoint

    * Aussie dollar touches 4 month high

    ...
  • House prices in the US hit a new post crisis low...

    In This Issue.

    * House prices in the US hit a new low...

    * Euro rallies as EU finance leaders prepare to meet...

    * UK economy sank in the 4th quarter...

    * Commodity currencies retreat...

    ...
  • Another tough day for stocks causes US Treasuries to rally.

    In This Issue.

    * Equity markets continue to fall...

    * FOMC to the rescue ???

    * Rioting in the UK...

    * Gold hits another high...

    ...
  • Finally some positive news for the US labor mkt.

    In This Issue..

    * Finally some positive labor news...
    * ECB and UK rate decisions...
    * China to stress test banks...
    * Happy Birthday Delaney Grace!!...

    Good day... Thunderstorms are rolling through the St. Louis area this morning, and while we don't need the rain, the cooler temperatures they are bringing with them are certainly welcome.

    The dollar moved a bit higher yesterday as data released here in the US finally contained some positive news for US workers. The ISM's index of non-manufacturing businesses rose to 54.3 in July from last month's 53.8 figure. And more importantly for market psyche, it was well above expectations which had predicted a drop to 53. About 90 percent of the US economy is service related, so this number is more closely watched than the manufacturing reports....
  • Employment Disappoints...

    In This Issue..

    * Fundamentals creep back into markets...
    * Dollar gets sold...
    * RBA keeps rates unchanged...
    * U.K. makes right moves...

    Good day... And a Terrific Tuesday to you! Did you have a grand Independence Day Holiday Weekend? I sure did! I got to see two ballgames, one very bad, one good. Spend time with the kids, friends, and relax a little... WOW! Now that I think of it, the weekend was more grand than I first thought!

    The currencies traded yesterday, but in very tight ranges, as the U.S. was on holiday. This morning, the bias is to sell dollars, much like it was on Friday before the liquidity of Europe went to the pubs... Let's go back now, and revisit Friday's action...

    Well... More proof that the double dip is coming on Friday......
  • Let's Talk Deficits...

    In This Issue..

    * A$, kiwi, and C$'s outperform...
    * Yen gets what is deserved!
    * Deficit to reach 100% of GDP?
    * Don't they work for us?

    Good day... And a Thunderin' Thursday to you! It has been Thunderin' here most of the night, so it was quite fitting to call our Thursday, Thunderin'! It's been a week of pop-up Thunder Showers for us here in the Midwest... If summer plays out the way most summers play out, we'll be pining for rain come August!

    The Japanese have a new Prime Minister (Kan), and the currency markets don't like it! The once so-called 'safe haven' of yen, is getting sand kicked in its face, and rightly so, as the new PM has previously stated his goal of a weaker yen...

    ...
  • 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!...
  • The Euro Short Squeeze Comes To An End...

    In This Issue..

    * Euro drops 2-cents overnight...
    * The Ring of Fire...
    * Euro to be added to Carry Trade?
    * Data Cupboard has housing data this week...

    Good day... And a Marvelous Monday to you! The last week of May! Can you believe that? This weekend is Memorial Day Weekend, and Summer is here! (I know, not officially, but to me, Memorial Day marks the beginning of Summer, and always has!) Summer heat arrived here this weekend... Man, did that hot sun feel good! It was 60 for a high on Thursday, and 90 yesterday... If you don't mind change, then you'll love St. Louis weather!

    Well, the heat returned to the euro overnight... After enjoying a couple of days in the sun, rising from the ashes due to a short squeeze last week, it appears to me as though that sun bathing for the euro is over... Yes, it looks like the selling will return this week, I mean I may only have one eye, but I can see a reversal when there is one! The euro began the overnight sessions climbing to 1.2587, and then turned on a dime! The single unit is now grading below 1.24... Do you see the reversal?...
  • Greek crisis is sooo yesterday...

    In This Issue..

    * Merkel urges action on Greece...
    * Brazil raises rates...
    * Sterling rises on UK election polls...
    * Precious metals continue to climb...

    Good day, and what a glorious day we had here in St. Louis. The sun was shining yesterday afternoon as the Cardinals completed their 4 game sweep of the Braves with a big 10-4 win. The day was capped off for Chuck and a bunch of his parrot-head friends with an outdoor concert from one of his faves - Jimmy Buffet. I'm sure they had a great time, as it is hard not to when the weather is perfect and Buffet is up on stage. Investors worldwide seemed to be in a better mood also. The worries of Greek sovereign defaults were in the past, and traders rushed back into currencies which could give them a yield advantage....
  • Investor concern causes a move back to dollars...

    In This Issue..

    * Investor concern causes a move back to dollars...
    * UK elections weigh on the pound...
    * The loonie can't keep the buck...
    * Jim Rogers mirrors Chuck's thoughts...

    Good day, the dollar moved higher throughout the trading day, and the rally continued in overnight trading. Just about all of the major currencies were down, with the Singapore dollar and Japanese yen the only two which saw a positive return vs. the greenback. This would indicate Wednesday was a 'risk off' day, as investors moved money out of higher yielding currencies and back to the carry trade funding favorites of the yen and US$....
  • A Mixed Bad of Data...

    In This Issue..

    * A Bias to take on risk...
    * China's Factory Output soars!
    * Brazil exports "stuff"!
    * Calling a bottom in Gold...

    Good day... And a Happy Friday to one and all! The 40 mph winds have stopped, which makes the cold a little more bearable... So... With the sun out yesterday, I would have to say that today will be a Fantastico Friday... Our office get together is tonight, should be a good time...

    Well... Yesterday, the non-dollar currencies looked like they were ready to break out of their funk against the dollar, led by the high yielders of Australia, and especially New Zealand... But, that flamed out as the day went on as the data for the U.S. was mixed, and did not give anyone a warm and fuzzy about the general direction of the economy....
  • German Business Confidence Slides...

    In This Issue..

    * Currencies trade in a tight range...
    * $81 Billion in Treasury auctions this week!
    * Fitch fans the flames of a fire in the U.K....
    * Aussie Business Confidence rises...

    Good day... And a Terrific Tuesday to you! I didn't start out this Tuesday on the right foot, and now I'm really running late! Oh well...

    The non-dollar currencies didn't move much yesterday, the euro bumped up and down against the 1.50 figure, while the A$ did the same against 93-cents, and Swiss against parity... So the currencies are trading in the same clothes they went to bed in last night!

    The Big Dog, euro, did attempt to move stronger into the 1.50 level, but that move was thwarted by a poor reading of German Investor Confidence this morning. German Investor Confidence as measured by the think tank ZEW, reported that their index had fallen to 51.1 this month VS the 56 in October. Most of those Germans surveyed said that they expect the economic recovery to be slow once the Gov't removes the stimulus in the economy. So... Previous euphoria is being replaced by realism... But that's OK... Better to have a reality grip on things than to go around thinking that everything is seashells and balloons......