So… It seems that most of this selling of the currencies and precious metals happened yesterday, while I was out observing Veteranâ€™s Day… It was like a scene from September 2008, with all the risk assets of stocks, currencies, and commodities all being thrown into the same barrel and shot full of holes! With the US banks closed, the volume was limited here in the US and I think that played into the nastiness of the sell-off of the risk assets.[Read more...]
The dollar is still moving along with strength for the fourth consecutive day… Yesterday, I told you that the 10-year Treasury had jumped 20 Basis Points to 2.72%, but not to get to lathered up about it, as the FOMC is getting ready to buy $600 billion of Treasuries, which should lower the yield. Well… The more I looked at the rising Treasury yields, (the 30-year hit a 6-month high) the more I realized that the dollar strength was being fueled by more than the problems of the Eurozone periphery countries… Investors were drawn to these higher yields, itâ€™s that simple…[Read more...]
The volatility weâ€™ve seen for the better part of the week carried over into Thursday, but we didnâ€™t have the big swings like Tuesday and Wednesday.
As I left you yesterday morning, the dollar index was down slightly and most currencies were still seeing the carry over effect from the collective appreciation of Wednesday, but things started to turn as we made our way into late morning and into the afternoon. It looks as though, at least from what I could tell, there were two drivers behind the dollar strength yesterday. It started with the data releases that showed some slight improvement, but more importantly, they didnâ€™t disappoint.[Read more...]
This past weekend was the G-20 meeting, and the anticipated brawl between the US and Germany on spending versus cost cutting… Well, the brawl didnâ€™t happen, instead they agreed to say that they will â€œtackle deficits once economic recoveries are assuredâ€�… Which here in the US means… NEVER! Not that the economic recovery wonâ€™t eventually come along, but that our lawmakers arenâ€™t going to stop spending… However, there are elections that might just change their minds, eh?[Read more...]