Well, that slippage that I was seeing yesterday morning turned into a dollar rally, and has continued throughout the night with the euro (EUR) losing 1 1/4-cents… It’s about the same with Aussie dollars (AUD), and the Norwegian krone (NOK), which I highlighted yesterday, and gave it the old “Pfennig kiss of deathâ€�!
[Read more...]Will There Be More Stimulus from the FOMC Meeting?
August 9, 2010 by Leave a Comment
Yesterday, I got all caught up with what Chris had to say last week, and let me stop here to say a BIG “Thank Youâ€� to Chris for taking the conn on the Pfennig last week… A great job as usual! Chris did leave me a few notes on the Friday happenings, and that helped me get the “motorâ€� started to write this morning!
[Read more...]Greenspan Believes in a Modest Recovery
August 2, 2010 by Leave a Comment
Chuck is headed down to Springfield with his family for their annual summer camping adventure, so he handed off the responsibilities of the Pfennig to me. But as usual, Chuck left me a good bit of information before heading out the door. Here it is:
Right after I hit “sendâ€� on Friday, and told you that the euro (EUR) had sold off 1-cent, and drug the other currencies (except yen (JPY) and francs (CHF)) with it… The euro turned around and headed north! I felt as though I had sent out some bad information! But there’s always a time to cut off, and when I did, the selling was going on…
[Read more...]US Data Beats Estimates… Economic Outlook Still Bad
July 23, 2010 by Leave a Comment
Judgment day has arrived for Euro banks
I will start off this morning’s Pfennig with a note from Chuck who is wrapping up his presentations at the Agora Financial Investment Symposium in Vancouver. Chuck will be flying home later this morning, but sent me the following last night before turning in:
[Read more...]Will the Euro Rally Last?
July 16, 2010 by Leave a Comment
Front and center this morning, the euro (EUR) is rising once again, and now this recovery is beginning to smell like it’s gone too far, too fast for me… Yesterday I told you the euro had gone through the 1.27 handle quickly… Well, 1.28 didn’t last one day either, and now the euro is poking through the clouds to sniff 1.30 again. The single unit is trading right now, as I write, at 1.2975… I’ve seen it a bit higher when I first turn on the screens, but talk about a rise! Actually, that’s a 5.5% rise in the euro in the past month…
[Read more...]Euro Rallies As Economic Data Piles Up Against a Strong Recovery
July 2, 2010 by Leave a Comment
The fireworks went off early yesterday in the currencies, folks… And they have not died down or had water thrown on them in the overnight and morning sessions…
WOW! You should have seen the currency screens lighting up yesterday… First it was the rise in Initial Jobless Claims, and then the hits just kept coming for the dollar, and economy. ISM Manufacturing Index slid further than forecast, which means manufacturing is slowing down. And Construction Spending was down in May…
[Read more...]Chinese Manufacturing Slows
July 1, 2010 by Leave a Comment
We closed the books on the second quarter yesterday. One that probably will end up showing some real rot on the US economy’s vine. Yes, I do believe that rot is going to be exposed as we move along in July. So… We have that going for us!
The news from China, overnight, was not exceptionally good, and the fear mongers came out of the woodwork again, which wasn’t a good thing for Aussie dollars (AUD)… In fact, all of the commodity currencies got whacked and sent to their rooms without TV! So, here’s the news from China…
[Read more...]
China Reduces Treasury Holdings
Front and center today, the TIC flows data from June was very interesting yesterday… Before we get into this, let me explain what I’m talking about for the new “kidsâ€� in class… TIC stands for Treasury International Capital, and it’s just a fancy way of saying that someone is tracking the net security purchases… Why is this important? Well, security purchases by foreigners is how the US finances its ever growing deficit. For example, the trade deficit and foreign direct investment makes up the current account… But just to keep this simple, the trade deficit in June was $49.9 billion… The net security purchases to finance that deficit in June was… $44.4 billion…
[Read more...]Click for detailed story