FOMC Puts $2 Trillion Floor On the Balance Sheet

The dollar is flying high this morning, as the knee-jerk reaction to the FOMC announcement yesterday didn’t last long. Let me explain… The FOMC statement was full of things that could be taken two different ways, but the first way it was taken was that the cartel would exit its reversal plans and implement a form of quantitative easing (QE)… I call it QE Light… Less filling…

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Merkel Sends the Euro Lower

The hits just keep coming for the euro (EUR)… As often as the Beatles put them out from 1963 to 1970, or Elton John put them out in the ’70s…

Well… It’s the same for the euro… Just when it looked as though the euro might survive a day without being taken to the woodshed… The Eurozone officials just couldn’t stand the prosperity! (And I use that word loosely!) German Chancellor Angela Merkel made some proposals to gain control over “destructive” financial markets… Her first move was to place a ban on naked short-selling.

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Spain Debt Downgrade: Is This the End of the Euro?

No amount of soothing words from Germany was going to stop the tailspin of the euro (EUR) yesterday, after S&P downgraded Spain’s debt, now… It’s a European debt pandemic according to the people selling the euro like funnel cakes at a State Fair.

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Chinese Demand for US Debt: Knowing Who Butters Your Bread

We had a pretty busy day in the currency markets yesterday, with the dollar rising sharply in the morning only to sell off again after lunch. The selling continued in Asian trading, and the dollar index is back down to levels it was at this time yesterday morning. These roller coaster rides will probably continue, as the markets just don’t seem to know where to take the currencies. Short-term moves will continue to be exaggerated, but the long-term dollar continues to be in place.

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Dollar Falters Overnight on Interest Rate Speculation

It can be a struggle to find things to write about when the markets aren’t moving much. That has been the case with the currency markets over the past few days, as the dollar has been trading in a fairly tight range. It felt like the dollar had the possibility to break out of this range yesterday, as we got a couple of different reports that looked to push the dollar higher.

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IMF Sends Gold to the Woodshed

Front and center this morning, we had the entire day-and-a-half rally in the risk assets completely erased, wiped out, and reversed yesterday… Recall that I told you in the morning that the euro (EUR) had lost about 1/4-cent while I was writing… Well, it held to near 1.37 until about mid morning, and then the trap door was sprung, and the euro went falling through the 1.37, and 1.36 floors!

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