I want to start off this morning by wishing Chuck good luck with the ‘procedure’ he will be going through today. Chuck is constantly having to go in to get poked and prodded by his doctors and I am impressed at how positive he remains through all of these doctor’s visits. He told me this wasn’t a ‘big’ deal and everything should be fine, but after the past few years I think Chuck has a slightly different view than the rest of us on what a ‘big’ deal is. So we should all say a quick prayer for Chuck and his doctors.
[Read more...]What the IMF Chief’s Arrest Means for the European Debt Crisis
May 16, 2011 By Leave a Comment
The big news over the weekend was the arrest of Dominique Strauss-Kahn who is the managing director of the IMF and had his sights on the French Presidency. Strauss-Kahn was arrested while sitting on a plane bound for a meeting with German Chancellor Angela Merkel to discuss the European sovereign debt crisis. His arrest will undoubtedly complicate the negotiations underway today in Europe.
[Read more...]US Dollar Declines But Stays in a Tight Range
May 11, 2011 By Leave a Comment
The dollar slipped a bit against most of the major currencies yesterday, but moved back up overnight and most currencies are right where they were when I hit the send button yesterday. Both the Japanese yen (JPY) and Swiss franc (CHF) traded lower yesterday as gains in the equity markets and commodities gave investors a bit more confidence in the global recovery. The euro (EUR) rose yesterday, but traded back off in early European trading as German Chancellor Angela Merkel suggested she may make it difficult for Greece to get more help. The bounce in commodities helped push both the Canadian (CAD) and Australian dollars (AUD) up a bit, and the British pound (GBP) rallied after inflation expectations were increased.
[Read more...]Interest Rate Differentials Drive the Currency Markets
March 30, 2011 By Leave a Comment
Even though this month has been one of the most volatile with the Japanese earthquake and wars in the Middle East, the currency markets are settling back into a familiar pattern. Interest rate differentials are again in the driver’s seat, and “risk” trades are riding shotgun, forcing safe haven trades into the back seat.
[Read more...]It’s All About Housing
March 23, 2011 By Leave a Comment
As I was sitting here looking at the calendar, I noticed that next week brings us to the end of March…and then it dawned on me that we’re already staring at the end of the first quarter. Simply amazing, where does the time go? It was a fairly uneventful day as there wasn’t much in the way of data to interpret or any market moving events, so most assets remained in a relatively tight range. I guess I should quit stalling and jump right in.
[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...]Canadian Rate Hike and Oil Price Boost the Loonie
July 21, 2010 By Leave a Comment
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.
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A Greek Resolution…For Now
Front and center this morning… There was a story that hit the newswires in the European session that claimed the bailout of 150 billion euros was close to being agreed on by all parties… The euro (EUR) shot up on this news, and is back to 1.42, after spending most of yesterday with a 1.40 handle, and looking very much in need of some medicine… Well, that medicine came in the form of an unsubstantiated newswire story… I say that because there is no proof that this is the case. So… Don’t get too comfy, cozy, with the 1.42 handle in euros… The rug could be pulled on that rally in a New York Minute…
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