Front and center this morning, the euro (EUR) has plunged overnight, and now sits 2-cents below where it was yesterday when I was writing the Pfennig. France auctioned bonds this morning, and had to ratchet up the yield, as many buyers are afraid of the rumors that France’s AAA rating is about to be slashed. But this is old news, and shouldn’t have caused the move in the euro that we’ve seen since yesterday.
[Read more...]Spain Successfully Auctions Off €4.94 Billion
December 13, 2011 By Leave a Comment
Well… The stock jockeys used to talk about a Santa Rally… I don’t think they’ll get the chance to talk about that this year… Unless of course they are talking in the past tense! You see, the markets are really screwed up these days… Take gold, for instance… One would think that, with debt problems in the two largest economies in the world, investors would be flocking to gold… Unfortunately, though, the markets think like this… “We should flock to dollars and treasuries”… And that’s what I talked about last week when I said I finally figured out that, if investors are buying dollars, what do they need gold for?
[Read more...]France and Germany Agree to Increase in EFSF
October 19, 2011 By Leave a Comment
Front and center this morning… Spain may have seen a 2-notch credit rating drop yesterday, but it didn’t matter, as it was announced that France and Germany were ready to agree to a 2 trillion euro rescue fund… Now they’re talking about a rescue fund, and not just the 500 billion euros they had previously agreed to. And the markets went hog-wild over this announcement. The dollar rally was quickly reversed and the euro (EUR) was on its way to 1.39, where it sat this morning until a few minutes ago… The Eurozone leaders, thus raised the ante… Who’s going to call?
[Read more...]FOMC Already Discussing “Options”
August 31, 2011 By Leave a Comment
As Chris was telling you (and by the way, Thanks Chris!) the past couple of days…the markets are in a mood to take it out on the dollar… But not every non-dollar asset has seen the consecutive green lights that bring one to “rally town”. For instance, this morning, the euro (EUR), is seeing some weakness as economists are marking down their previous forecasts for global growth, which would hurt German exports… Yes, the Chicken Littles are out in force, claiming the sky is falling, the sky is falling, all over the world. So, that brings the worry warts to buy dollars… Strange, eh?
[Read more...]Bernanke Backtracks Stimulus Talk
July 15, 2011 By Leave a Comment
The dollar fights back… Yes… Back and forth from a “buy dollars” bias to a “sell dollars: bias. Billy Preston (the 5th Beatle) sang about this… Will it go round in circles… Will it fly high like a bird up in the sky… But, hey! That’s OK, because what this kind of trading does, is keep campers on both sides of the river…and that’s what makes a good liquid market, for when all the campers decide to get on one side of the river, it gets too darn crowded! And the campgrounds get overused, and run down…
[Read more...]The True US Unemployment Picture
July 8, 2011 By Leave a Comment
Well… We’re not seeing a change in the dollar/euro pair this morning, as the dollar beats on the euro (EUR) for having countries like: Greece, Italy, Ireland, & Portugal as a part of their mix… Of course, as I’ve pointed out many times in the past, the US has states like: California (the 8th largest GDP in the WORLD!), Illinois, Michigan, New York, and now add Minnesota.. The story I saw said the euro was losing ground to the dollar because the debt crisis is entering an “acute phase”… Whatever the heck that is!
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Euro Reverses Slide in Short Squeeze
The Jobs Jamboree on Friday proved to be a real boost for the economy and the dollar, which rallied on a “strong jobs number” for the first time in a month of Sundays. I highlight “strong jobs number” because, this is what this has come to… 200,000 jobs were created, so says the Bureau of Labor Statistics (BLS), in December, which is the strongest number of jobs created in another month of Sundays… The jobs reports have been so weak for so long now, that the media, and markets are all lathered up and calling this a “strong jobs number”… It’s stronger than previous ones, yes…
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