As I was watching the market reactions yesterday, there seemed to be a lot of optimism floating around as equities rose to their highest levels since 2007, and the dollar, according to the dollar index, finished the day above 80. Yesterday started out with a bang on US trading as retail sales came in, as expected, with a 1.1% gain for February. This rise, which was the biggest in five months, coupled with a small upward revision to January’s number, had many jumping for joy. The higher retail numbers were being attributed to the better jobs report of late, which does provide support, but I would like to see a lot more before I join the masses by dancing in the streets.
[Read more...]Fed to Devalue Dollar by 33%?
February 8, 2012 By Leave a Comment
The currencies began to get some wind in their sails yesterday midmorning, and soon an all-out rally was taking place. The currency rally was led by the euro (EUR), just like in the old days, and the euro was getting bought like dealers were giving them away for free! Rumors of the European Central Bank backing off its previous stand got the euro on the rally tracks, and then the real strong push higher came when those rumors were proved to be true.
[Read more...]Currency Rally Fades in Overnight Trading
January 24, 2012 By Leave a Comment
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?
[Read more...]Eurozone Plan Spurs Currency Rally
October 14, 2011 By Leave a Comment
Front and center this morning, G-20 Finance Ministers are meeting in Paris, and it looks like the early leaks of what’s going on is responsible for the currency and metals rally this morning. A plan to deal with Europe’s debt problems has been hatched. The outline of the plan has deeper losses on Greek bonds, higher bank capital levels and increased firepower for bailouts, and the IMF. And it sounds like Eurozone leaders will meet next week to iron out the devil in the details, and put this to bed.
[Read more...]Euro Strength Hinges on Eurozone Emergency Fund Vote
September 28, 2011 By Leave a Comment
Well… Yesterday, I told you how the rumors were flying around about how the markets believed the Eurozone leaders were nearing a deal to contain the contagion debt problem in the Eurozone peripheral countries. The currencies basked in sunlight all day, that they hadn’t seen in a couple of weeks, with the euro (EUR) climbing back over 1.36, and the Aussie dollar (AUD) pushing back toward parity…
[Read more...]The Fed Chooses Operation Twist
September 22, 2011 By Leave a Comment
Well… It looks as though that perfect storm I talked about two weeks ago, has hit the shoreline… The Fed is out on the dance floor twisting the night away, and home prices continue to decline… But… The dollar is rallying this morning, folks… Strange but true!
Yes, the perfect storm that was brewing for a dollar rally, and short term period of dollar strength, hit the shoreline last night… And the dollar is in the driver’s seat this morning… I guess, the overnight markets believe that the Fed’s latest, greatest, move to stimulate the US economy will work, and everyone will want to own dollars going forward… Hmmm… I’m not buying that… But apparently someone is, because the currencies have a look about them this morning that they haven’t been seen with in some time!
[Read more...]Currencies Take Their Turn Beating on the US Dollar
August 23, 2011 By Leave a Comment
Front and center today, gold and silver are seeing some profit taking, after gold climbed as high as $1,897!!! ($1,910 in futures!) I told the boys and girls on the desk yesterday that I truly believed that once gold moved past $1,900, that it wouldn’t take long for it to get to $2,000, because of all the momentum behind it, and the idea that so many analysts have called for $2,000 gold… Of course, I don’t know anything “inside” that would make me think that… It’s simply my opinion, and I could be wrong!
[Read more...]
Bernanke Jawbones the Equity Markets Higher
Good day. The dollar fell against many of the higher-yielding currencies yesterday following a speech by Fed Chairman Bernanke, which the markets interpreted as signaling Fed policies will remain accommodative for some time. Investors have been linking the more-positive U.S. data, including a steadily improving labor market, with concern that the Fed’s policymakers would have to retract their January statement that U.S. monetary policy would remain “exceptionally accommodative.”
[Read more...]