The currency rally was stopped in its tracks last night. After watching the euro (EUR) rally to 1.3175 yesterday, I was prepared to come in and tell you all about how the Spanish debt auction results had given the euro the wind in its sails it needed. And that was the case, that is until the overnight markets pushed the single unit back down below 1.31. And when that happens, the rest of the currencies search for a bid — but find just a few crumbs of bids out there.
[Read more...]US Retail Sales Send Risk Assets Higher
April 17, 2012 By Leave a Comment
Good day. In keeping with the tradition I set many years ago on Tax Day:
“If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat.
If you get too cold, I’ll tax the heat,
If you take a walk, I’ll tax your feet…
Cause I’m the taxman, yeah, I’m the taxman…”
China Widens Trading Band
April 16, 2012 By Leave a Comment
Well… Friday quickly turned around regarding the currencies and metals rally, and sent them to the woodshed… Stocks also retreated, thus making it a triumvirate of risk assets getting sold… That makes it a Risk Off day… Apparently, the slower-than-expected (but still 8.1%) GDP in China really scared the bejeebers out of the stock jockeys, and once the selling began there it carried over to the currencies and metals.
[Read more...]Chinese Imports Remain Robust
April 11, 2012 By Leave a Comment
Good day. Another well-pitched game, and a couple more home runs for my beloved Cardinals last night. I must say, it’s been a very good start to the season, but we all know it’s a marathon season, and getting too lathered up early can lead to disappointment later, so I’ll just say I’m pleased they have started so well.
[Read more...]Calls for QE3 on Disappointing Jobs Data
April 9, 2012 By Leave a Comment
Good day. It was a picture-perfect day here in St. Louis yesterday for our Easter celebration. It’s not often we can do that outside, but outside is the only place you would want to be yesterday! The grandkids were all dressed for the occasion, and they all looked as cute as can be.
Well, the jobs jamboree sure wasn’t cute on Friday. In fact, it bordered on ugly. You may recall that going into Friday’s jobs report, the ADP report on Thursday said the economy added over 200,000 jobs in March, and that the “experts” had forecast an increase in jobs of 205,000.
[Read more...]Risk Assets Trade in a Tight Range
April 6, 2012 By Leave a Comment
Good day. And a Happy Friday to one and all! It’s Good Friday for those of us that observe it that way. Good Friday for the markets means that the stock jockeys have headed to the Hamptons already, and the bond boys and girls will close up shop early today, so they can get a head start on getting out of town, too.
[Read more...]Astounding Facts About Fed Treasury Purchases
April 5, 2012 By Leave a Comment
The risk assets are still getting taken to the woodshed this morning, and once again, even stocks are getting sold. So there’s nowhere to hide these days from the dollar. Even Treasuries aren’t seeing a steady flow to them these days. So David Freese isn’t the only one swinging a big stick these days; the dollar has one, too!
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Aussie Inflation Falls, Dragging the Aussie Dollar Down
The Aussie inflation report that printed last night certainly is going to give my thought of no rate cut a lot of problems. Aussie first-quarter CPI rose just 0.3% from the previous quarter.
The forecasts ranged from 0.5-0.6%, so the lower inflation is going to be the straw that stirs the drink for the Reserve Bank of Australia (RBA), who had hung their rate cut hat on this report. Now that it has printed and was very weak, I don’t see how the RBA doesn’t cut rates. So much for me leaving a light on for no cut, eh?
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