The euphoria in the currencies and metals carried through yesterday morning, with the euro (EUR) bumping up to 1.3425, and the Aussie dollar (AUD) bumping up to 0.9568… But the profit taking began to step in, and soon all the lofty levels that the currencies and metals had gained for the previous 24 hours were seeing slippage, and that slippage soon became hard selling.
[Read more...]Currency Rallies Abound
September 14, 2010 by Leave a Comment
The risk investors have nothing but green lights in front of them too! Risk is ON! Funny how things have changed, eh? I mean, in the “old daysâ€� an Industrial Production report from China would have been ignored, for it was “all about the USâ€�… But not any longer, apparently, because, the Chinese Industrial Production and Retail Sales reports over the weekend, have opened Pandora’s Box of currency rallies!
[Read more...]Commodity Currencies Punch a Hole in Risk Aversion Fog
September 9, 2010 by Leave a Comment
Well… I love it when a plan comes together! I told you months ago, that the markets had given up on a rate hike from the Bank of Canada (BOC) at their 9/8 meeting… I took a different road, and said they would still hike rates… I was alone on this one folks, but… Guess what? The BOC hiked rates 25 BPS (1/4%) yesterday! I had thought they BOC would hike rates but attempt to water the hike down with dovish tones… Here’s the BOC statement, you decide if they sound dovish or not…
[Read more...]Aussie Job Creation Soars. Is a Rate Hike Imminent?
July 8, 2010 by Leave a Comment
Yesterday I wrote… “Today, we’ll see the latest labor report from Australia. In recent months, the jobs data has consistently surprised to the upside each month, so it’s not like going out on a limb to say that I expect the job creation to be better than the +15,000 that’s forecast.â€�
[Read more...]High Yielders Sell Off on Bad US Existing Home Sales Data
June 23, 2010 by Leave a Comment
Yesterday, after the currencies had sold off in the overnight sessions, they traded throughout the US session in a tight range, with a bias to move higher, but were not able to mount any kind of sustained move against the dollar.
This morning, the overnight sessions have left the euro (EUR) about where it was yesterday morning. The worst performers are the ones that were the best performers on Monday… The high yielders… Aussie (AUD), kiwi (NZD), South Africa (ZAR), Norway (NOK), and even Canada (CAD), not that it’s a high yielder, but since Canada was the first G-7 nation to raise rates, they get some credit…
[Read more...]Did the US Have Negative “Real” Job Creation?
June 7, 2010 by Leave a Comment
Well… On Friday, when I was signing off, I said that suddenly the currencies were getting sold… At that time, it looked as if it might be short-lived… But NOOOOOOOOOOOOOO! This was an all-out assault on risk, folks… At when the dust settled in the early afternoon, the euro (EUR) had fallen below 1.20, for the first time since 2005, and every other currency was getting whacked, too. For the first time all week, though, gold rallied…
[Read more...]BP (NYSE:BP) — Is BP Too Big to Fail?
May 24, 2010 by Leave a Comment
London-based BP (NYSE:BP), is the world’s third largest public oil and gas company. However, positioned at the heart of the oil leak in the Gulf of Mexico, and with a weakening market cap now around $130 billion, the question must be asked… is BP too big to fail?
[Read more...]Euro Price Hits a 4-Year Low
May 17, 2010 by Leave a Comment
We had a very soggy weekend here in St. Louis, which continues this morning. It rained on the precious metals on Friday, too, along with the currencies that weren’t dollars, and yen (JPY)…
The overnight markets have continued with the theme from Friday’s price action, which is to sell euros (EUR) and on the crosses bring the other currencies down… Gold, which was up $13 when I signed off on the Pfennig, Friday morning, ended up losing $6, which is a $19 turn-around… The media blamed the gold sell-off on the strong US retail sales, which posted a better-than-forecast number for April of +0.4%, with March’s number revised upward from 1.6% to 2.1%… A strong revision, I must say!
[Read more...]Greek Spending Cuts Lead to Civil Unrest
March 4, 2010 by Leave a Comment
What a day the currencies had yesterday! The euro (EUR) gained ground all the way back to 1.3730 (but saw some profit taking at the end of the day) and all the other currencies followed in step… Now… There’s two ways to look at this… Either the euro is like a star that’s getting ready to burn out… (It always shines brightest before it burns out), or… It’s like a star that had been covered up by another planet, and is coming back into view!
[Read more...]
Currency Wars?
Yesterday, we watched the currencies and precious metals rise all day long, in small increments. But the overnight markets have taken the currencies even higher! For instance, the Aussie dollar (AUD) is near 99-cents, and a new all-time record high! And gold is up another $9 this morning to $1,358!
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