That darn Reserve Bank of Australia (RBA) really threw a cat among the pigeons last night, by not only cutting their interest rate, which was expected, but by cutting it by 50 basis points (one-half a percent)! While I had heard calls for such a deep cut, I really didn’t think the RBA would be so dramatic. The economy was not that slow, jobs were still being added and while China’s economy has moderated, it hasn’t fallen off a cliff!
[Read more...]RBA Cuts Deep
May 1, 2012 By Leave a Comment
That darn Reserve Bank of Australia (RBA) really threw a cat among the pigeons last night, by not only cutting their interest rate, which was expected, but by cutting it by 50 basis points (one-half a percent)! While I had heard calls for such a deep cut, I really didn’t think the RBA would be so dramatic. The economy was not that slow, jobs were still being added and while China’s economy has moderated, it hasn’t fallen off a cliff!
[Read more...]Spain Enters its Second Recession in Three Years
April 30, 2012 By Leave a Comment
Friday’s price action in the currencies was all about tight ranges, but if there was any bias, it was to sell dollars, especially after it was announced that the first print (they’ll be revisions coming) of first-quarter US GDP was 2.2%, down from the fourth-quarter’s 3% clip.
We edge ever so slightly to the other side of the storm from the “eye” and data print after data print show that. Shoot, Rudy, the “experts” had forecast slippage, so they see what’s happening too. Unfortunately for their reputations, they forecast first-quarter GDP at 2.5%, but it printed at 2.2%, even worse slippage than the “experts” saw happening.
[Read more...]Aussie Inflation Falls, Dragging the Aussie Dollar Down
April 24, 2012 By Leave a Comment
The Aussie inflation report that printed last night certainly is going to give my thought of no rate cut a lot of problems. Aussie first-quarter CPI rose just 0.3% from the previous quarter.
The forecasts ranged from 0.5-0.6%, so the lower inflation is going to be the straw that stirs the drink for the Reserve Bank of Australia (RBA), who had hung their rate cut hat on this report. Now that it has printed and was very weak, I don’t see how the RBA doesn’t cut rates. So much for me leaving a light on for no cut, eh?
[Read more...]UK Retail Sales Push Euro-Bloc Higher
April 20, 2012 By Leave a Comment
The euro (EUR) has gotten another boost this morning from a think tank report in Germany, and what’s called the “euro bloc” of currencies is moving along with the euro this morning. The “euro bloc” consists of: euro, Norway, Sweden, Denmark, Switzerland, the U.K. and we could even throw in the euro-wannabes (Hungary, Poland and the Czech Republic).
[Read more...]Overnight Currency Rally Fades
April 19, 2012 By Leave a Comment
The gyrations and volatility continue in the markets — one day up, the next day down. One day a piece of data matters; the next day it doesn’t. But we carry on in spite of these daily movements back and forth.
For instance, the euro (EUR) is rallying this morning, which gives all the other currencies a chance to spread their wings. Spain was able to auction their target maximum amount of euro bonds this morning, and while the yield rose from the last time 10-year bonds were auctioned, the fact that the whole allotment went off without a hitch is giving the euro some breathing room this morning.
[Read more...]US Retail Sales Send Risk Assets Higher
April 17, 2012 By Leave a Comment
Good day. In keeping with the tradition I set many years ago on Tax Day:
“If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat.
If you get too cold, I’ll tax the heat,
If you take a walk, I’ll tax your feet…
Cause I’m the taxman, yeah, I’m the taxman…”
China Widens Trading Band
April 16, 2012 By Leave a Comment
Well… Friday quickly turned around regarding the currencies and metals rally, and sent them to the woodshed… Stocks also retreated, thus making it a triumvirate of risk assets getting sold… That makes it a Risk Off day… Apparently, the slower-than-expected (but still 8.1%) GDP in China really scared the bejeebers out of the stock jockeys, and once the selling began there it carried over to the currencies and metals.
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Jobs Data Push Speculators Out of the Market
Good day, and welcome to another week. Chuck finally made it back home last night, after speaking at two different conferences last week down in Florida. We had a pretty wicked night of thunderstorms last night, so I’m sure Chuck’s flight wasn’t exactly smooth. Sure hope he got over that stomach thing that he had on Friday.
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