Well… Itâ€™s a â€œrisk offâ€� day that began yesterday afternoon… The only strange part of this risk off trading is the fact that the euro (EUR) is rallying versus the dollar! I know, I know, that seems to be a very strange occurrence… But itâ€™s true, itâ€™s true, I did see a euro rally! Other than euros, and sterling (GBP), the rest of the currencies have taken on water versus the dollar since yesterday afternoon, and that includes gold and silver, which have sold off too.[Read more...]
Last time I sat in for Chuck, the markets took us on quite a ride; but with the end of the year within sight, and most of the trading desks short-staffed, I donâ€™t think we will see a lot of big positions being put on the books. Should be a fairly quiet couple of weeks to end out 2010… (Chuck would tell me I just jinxed any hopes of lower volatility!!)[Read more...]
Well… Iâ€™ve spent a lot of time this week talking about the rise in Treasury yields… Apparently the rise in yields wasnâ€™t confined to Treasuries, as municipal bonds are getting whacked too… I saw that my friend and former colleague, David Galland, had this to say about the problems with the municipal bonds…[Read more...]
Watch out today at noon, Eastern Standard Time… Thatâ€™s when the Fed/Cartel, is going to post on its website, just who were the recipients of $3.3 trillion in emergency aid back in 2008, during the financial crisis… The Cartel (or â€œBernankâ€�) has fought to hide this information, but one of the items in the financial overhaul regulations makes the â€œBernankâ€� comply with the demand to disclose the recipients…[Read more...]
Last night, I went to my computer at home, and brought up the currency markets, and saw that as of 9:00 last night, the currency rally that was VERY strong yesterday, was still â€œonâ€�… But, like I said at the top, I arrived here, albeit late, this morning and things are drastically changed! I was all prepared to tell you about the 1.70 appreciation of the euro (EUR) in one day, and the $18 rise in gold… But, the best laid plans of mice and men change, eh?[Read more...]
As I suspected in yesterdayâ€™s Pfennig, the dollar selling and the pause in the currency rally that was caused by Japanese intervention, has not continued… Yes, the currencies, for the most part, are back on the rally tracks versus the dollar this morning. The euro (EUR) is leading the pack, just like the old days, eh?[Read more...]
Front and center this morning, Australia printed a moon-shot second quarter GDP report, that has the risk aversion campers running for cover this morning. All currencies, except the risk aversion currencies of dollar, yen (JPY) and francs (CHF), are getting sold, and the Aussie dollar (AUD) has gained 1 1/2-cents![Read more...]
Well… The chill in the air isnâ€™t confined to the cold front that moved through the Midwest this week… The cold frontâ€™s chilly air has moved over the economic data here in the US and to a lesser extent, the dollar.
The dollar is weaker this morning versus the usual suspects, led by the euro (EUR), which has climbed and clawed its way back to above 1.27; and the commodity currencies look a bit healthier this morning, too. Itâ€™s all about the awful housing data that had printed two consecutive days this week. Iâ€™ll get to that in a minute, but first some observations from the Chuck flight deck…[Read more...]
Who would have thought that the euro would have come this far, this fast? After falling to a 4-year low of $1.19 against the US dollar, the European currency has made a sharp recovery â€“ trading today at around $1.30.
But donâ€™t think for a moment that the euro is a safe bet again. The fact is, the euro is floating higher because of three simple factors that could disappear at any time. And its surge has nothing to do with the European Central Bankâ€™s â€œstress testsâ€� or even Europeâ€™s fundamentals.[Read more...]
Yesterday morning I told you that the currencies, for the most part, were flat… That didnâ€™t last too much longer… The US printed what the media and markets thought was a fabulous New Home Sales report, and the rally in risk assets was â€œonâ€�! With stocks and currencies in rally mode, gold and silver backed off… Iâ€™ll talk about that trading theme weâ€™ve seen lately in a minute, but first… Letâ€™s talk about the housing data…[Read more...]