We had some pretty unsettled weather come through the area, yesterday, with the lightening and thunder producing quite a show. The currency markets, on the other hand, were quite stable. The biggest gainer was the yen (JPY), and the largest loser was the euro; but neither moved more than 0.65% versus the US dollar… Tight ranges across the board for the currency markets.
[Read more...]Moody’s Downgrades Portugal
July 13, 2010 by Leave a Comment
Moody’s announced overnight that they were downgrading Portugal’s debt rating by two levels to A1… I don’t want to get started on these ratings agencies again; they have become as useless as a pay toilet in a diarrhea ward! OK… That probably wasn’t too good, to start off today’s letter with a saying like that, but… It’s what my fat fingers typed, so it stays!
[Read more...]Final Revisions of First Quarter GDP: Stimulus Not Working
June 28, 2010 by Leave a Comment
This past weekend was the G-20 meeting, and the anticipated brawl between the US and Germany on spending versus cost cutting… Well, the brawl didn’t happen, instead they agreed to say that they will “tackle deficits once economic recoveries are assuredâ€�… Which here in the US means… NEVER! Not that the economic recovery won’t eventually come along, but that our lawmakers aren’t going to stop spending… However, there are elections that might just change their minds, eh?
[Read more...]Markets With Renewed Risk Appetites Rethink China
June 22, 2010 by Leave a Comment
Are you full? You know, appetite wise? Probably not, for most of you read the Pfennig in the morning, with a cup o’ Joe… The renewed appetite for risk that the markets were displaying yesterday disappeared yesterday afternoon. The markets were full of risk, I guess… For the selling was swift and damaging to the levels that the currencies, commodities, and stocks had gained overnight on the news that China would allow more flexibility in the renminbi (CNY).
[Read more...]China to Put Renminbi in a Currency Basket
June 21, 2010 by Leave a Comment
Things heated up in the currencies this weekend… Yes, while everyone was wiping the milk from their mouths from their cereal they ate for breakfast on Saturday morning, the Chinese made a BIG announcement… Rather than tell you in my own words… Here is the official statement from the People’s Bank of China (PBOC)…
[Read more...]Moody’s Downgrades Greek Debt. Euro Sell-Off Short-Lived.
June 15, 2010 by Leave a Comment
That risk assets rally that we were watching yesterday morning ran into a speed bump around noon… Yes, the euro (EUR) was nearing 1.23, Aussie (AUD) was looking as though it would touch 87-cents, and so on… But then along came Moody’s… Talk about bad timing! OK… Let me set this up for you…
[Read more...]Canada is the First G-7 Country to Hike Rates
June 2, 2010 by Leave a Comment
Yesterday, I told you that the Bank of Canada (BOC) would meet today, and raise rates… Well, I got that half right! UGH! The BOC did raise rates, but they did it yesterday! Yes, the BOC became the first central bank in a G-7 country 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!
[Read more...]Is Angela Merkel Losing Her Political Capital?
June 1, 2010 by Leave a Comment
Yesterday, while we were honoring the fallen soldiers of today and yesteryear, the Europeans were knocking the stuffing out of the euro (EUR) once again… This time, it was a story that spread like wildfire regarding the Eurozone economy not being able to have strong growth, because of all their austerity measures. Now… Come on boys! First you slam the euro’s fingers in the door (OUCH!) for not cutting deficit spending in a few countries, and when they do show a willingness to cut deficit spending, you pull the ruler out and smack the euro right across the wrist!
[Read more...]
Bailing On a Canadian Dollar Rate Hike?
So, it looks to me that all my warnings about the euro (EUR) not being out of the woods just yet, were bang on… You see the “heatâ€� is back on the Eurozone’s debt problems, which is strange in that there were two successful bond auctions by member countries last week… You see, to me this is nothing more than the old saying about when the US sneezes the rest of the world gets a cold, is coming into play right now.
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