Both Germany and the IMF have cut their growth forecasts for this year. Germany for Germany, and the IMF for global growth… But both are cutting their forecasts because of the same thing… Eurozone weakness, due to the debt problems, which are pushing austerity measures, which will cut growth for certain!
[Read more...]Existing Home Sales: Up or Down?
December 22, 2011 By Leave a Comment
The markets will be getting thin today, and will be super light tomorrow as most of the traders take some time off for the holidays. These thin markets can be volatile, as any moves are exaggerated by the lack of volume in the markets. We have lots of data hitting the markets today, which could be the spark for some real action, so it may get interesting.
[Read more...]Euro Rallies on Positive IFO Index and a Successful Spanish Debt Auction
December 20, 2011 By Leave a Comment
The euro (EUR) sure enjoyed a better night rebounding from close to its annual low versus the US dollar. A surprisingly upbeat IFO business climate index combined with a pledge of more funds for the bailout and a positive Spanish auction to send the common currency higher. The IFO Institute’s index, based on a survey of 7,000 German business executives, rose to a three-month high of 107.2 from 106.6 in November. Economists had expected the index to drop to 106. November’s number had surprised on the upside also, so this month’s value certainly seems to confirm a trend that indicates Germany’s economy may be able to push through the credit crisis to remain on a solid growth path.
[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...]Greek PM Begins to Sell the Grand Plan
November 2, 2011 By Leave a Comment
Good day… And a Wonderful Wednesday to you! I’m bailing on the trading desk today… Remember when I told you last week about too fast, can’t last with the currencies? Well… I think that was me and coming back to the office… Nevertheless, I’m here to give you the latest news on the currencies, metals, economies, and Chuckisms!
[Read more...]Where’s the Economic Growth We Were Promised?
October 21, 2011 By Leave a Comment
Have you ever wondered, at least recently, if the markets are just playing games with investors? It’s like a game of good cop, bad cop… On one day, the markets will be all about the euro (EUR), and the prospects for a solution to the Eurozone debt problems, and without any notice, turn on the euro, for a different reason. I’ve always said that traders were fickle, but this is taking it to the extreme, and beginning to cause me to have a rash!
[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?
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Currency Rally Fades in Overnight Trading
The currency/risk on rally was quite strong yesterday, all day long! However, in the overnight markets, we’ve seen some profit taking, and reassessing of what they were doing, like pushing the euro to above 1.30. I say that because there’s still no agreement with Greece and the private creditors… I keep hearing and reading analysts, talking about how the Greece problem is unsolvable… OK… maybe it is… but if that’s true, then what about Illinois? Or California?
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