The currencies are still in rut versus the dollar this morning. They haven’t lost more ground, just stuck in a rut. The euro (EUR) should have gained on the news that Spain was able to auction bonds this morning and meet their target, while France sold bonds and saw their yields drop. These two auction results should have eased the minds of those fearing the eurozone countries will struggle to finance their borrowings — at least for now.
[Read more...]Central Banks Get Weaker Currencies
May 3, 2012 By Leave a Comment
The currencies are still in rut versus the dollar this morning. They haven’t lost more ground, just stuck in a rut. The euro (EUR) should have gained on the news that Spain was able to auction bonds this morning and meet their target, while France sold bonds and saw their yields drop. These two auction results should have eased the minds of those fearing the eurozone countries will struggle to finance their borrowings — at least for now.
[Read more...]Eurozone Economy Slows Down
May 2, 2012 By Leave a Comment
Good day. Strangeness all around, folks. The U.S. government continues in their effort to make us all feel better, so we go out and spend, spend, spend. We have that to talk about today, along with the regular risk-on/risk-off discussion. The sun finally came out yesterday, which always makes me feel more alive.
[Read more...]Eurozone Economy Slows Down
May 2, 2012 By Leave a Comment
Good day. Strangeness all around, folks. The U.S. government continues in their effort to make us all feel better, so we go out and spend, spend, spend. We have that to talk about today, along with the regular risk-on/risk-off discussion. The sun finally came out yesterday, which always makes me feel more alive.
[Read more...]RBA Cuts Deep
May 1, 2012 By Leave a Comment
That darn Reserve Bank of Australia (RBA) really threw a cat among the pigeons last night, by not only cutting their interest rate, which was expected, but by cutting it by 50 basis points (one-half a percent)! While I had heard calls for such a deep cut, I really didn’t think the RBA would be so dramatic. The economy was not that slow, jobs were still being added and while China’s economy has moderated, it hasn’t fallen off a cliff!
[Read more...]RBA Cuts Deep
May 1, 2012 By Leave a Comment
That darn Reserve Bank of Australia (RBA) really threw a cat among the pigeons last night, by not only cutting their interest rate, which was expected, but by cutting it by 50 basis points (one-half a percent)! While I had heard calls for such a deep cut, I really didn’t think the RBA would be so dramatic. The economy was not that slow, jobs were still being added and while China’s economy has moderated, it hasn’t fallen off a cliff!
[Read more...]Spain Enters its Second Recession in Three Years
April 30, 2012 By Leave a Comment
Friday’s price action in the currencies was all about tight ranges, but if there was any bias, it was to sell dollars, especially after it was announced that the first print (they’ll be revisions coming) of first-quarter US GDP was 2.2%, down from the fourth-quarter’s 3% clip.
We edge ever so slightly to the other side of the storm from the “eye” and data print after data print show that. Shoot, Rudy, the “experts” had forecast slippage, so they see what’s happening too. Unfortunately for their reputations, they forecast first-quarter GDP at 2.5%, but it printed at 2.2%, even worse slippage than the “experts” saw happening.
[Read more...]
Euro Held Hostage By Elections
After reaching a high of nearly $106 on Wednesday, the price of oil has hit the slippery slope (yay!) all the way down to $101.27 this morning. While it will take a while before this ride on the slippery slope is seen at the gas pump, if ever, the psychological feeling it has for consumers is good. It won’t play well with the petrol currencies, like Norway, Canada, Russia, etc.
[Read more...]