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...]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.
[Read more...]Chinese Imports Remain Robust
April 11, 2012 By Leave a Comment
Good day. Another well-pitched game, and a couple more home runs for my beloved Cardinals last night. I must say, it’s been a very good start to the season, but we all know it’s a marathon season, and getting too lathered up early can lead to disappointment later, so I’ll just say I’m pleased they have started so well.
[Read more...]Fed Gives Parameters for Additional Stimulus
April 4, 2012 By Leave a Comment
Good day. Boy, did I ever “hit the wall” yesterday! I got home and collapsed in my recliner, and immediately fell asleep. It had been a whirlwind three weeks, and then I “hit the wall.” It looks as if the risk assets have “hit the wall” too yesterday afternoon, which has carried through to the overnight markets.
[Read more...]Yen Repatriation is Over
April 3, 2012 By Leave a Comment
Good day. A tricky but successful first day on our brand-spanking-new computer system was had yesterday. Still some things to work out, but as our first IT guy used to say, “It’s not a bug, it’s a feature.” It still rings true! So onto day two, and let’s see what’s in store for us today!
[Read more...]China Posts Strong Manufacturing Data
April 2, 2012 By Leave a Comment
When I left a couple of weeks ago, it appeared as though the bond rally that began in the early ’80s was about to finally break. But as I return, I see that the yield on the 10-year has regained some vigor, and rallied from the 2.38% when I left to 2.22%. (Remember, when the yield on a bond falls, the price goes up.)
[Read more...]German Factory Orders Drop
March 7, 2012 By Leave a Comment
The “fear factor” has been reduced in the eurozone, as it appears that private investors are accepting their medicine, and taking their dose of the Greek bond swap. Societe Generale, France’s second-largest bank, and UniCredit have announced that they will accept the terms of the bond swap, along with a long list of other companies that too have announced acceptance of the terms. This flood of private investors announcing that they would accept the terms has lifted the fear factor for the euro (EUR) this morning. But by all means, that doesn’t mean the euro is out of the woods, folks.
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Aussie Inflation Falls, Dragging the Aussie Dollar Down
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?
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