Yesterday morning I told you that the euro (EUR) had broken above 1.30, and I would check it to see how long it remained there… Well, this time it was more than 10 minutes, and the euro rose to 1.3040… But then the rug was pulled from under the single unit, and back below 1.30 it went… In fact, it fell to just above 1.29, before turning around once again and heading higher, eventually ending the day at 1.30.
[Read more...]US Budget Deficit Forecast Increases
July 26, 2010 By Leave a Comment
Did you hear on Friday that the Federal Budget Office has updated their forecast for the budget deficit this year? What was originally a forecasted deficit of $1.6 trillion has been improved to $1.47 trillion… While that might be considered an improvement it would still be worse than last year’s $1.4 trillion deficit, and looking further out, the forecasts get darker and darker.
[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...]China Boosts the Euro
June 10, 2010 By Leave a Comment
Front and center this morning, the euro (EUR) is pushing higher on some words from Asia… Seems that China is very much behind the euro, and made statements related to that thought, which really put some starch in the euro’s shorts overnight. The thing I worry about right now, is the European Central Bank (ECB) meeting that’s going on as I type my fat fingers to the bone… The ECB could crush this mini-rally in the euro in a heartbeat by saying the “wrong thing” at their press conference that will be held after the ECB announces that rates will remain unchanged.
[Read more...]Fed to Keep Interest Rates Unchanged Until 2011?
June 9, 2010 By Leave a Comment
The currencies traded in a tight range yesterday, with a brief mini-rally in euros (EUR), as the single unit rallied to 1.20, but that was short-lived. The rumor going around was that the Swiss National Bank (SNB) was intervening…
[Read more...]Did the US Have Negative “Real” Job Creation?
June 7, 2010 By Leave a Comment
Well… On Friday, when I was signing off, I said that suddenly the currencies were getting sold… At that time, it looked as if it might be short-lived… But NOOOOOOOOOOOOOO! This was an all-out assault on risk, folks… At when the dust settled in the early afternoon, the euro (EUR) had fallen below 1.20, for the first time since 2005, and every other currency was getting whacked, too. For the first time all week, though, gold rallied…
[Read more...]US Deficit to Reach 100 Percent of GDP?
June 3, 2010 By Leave a Comment
The Japanese have a new Prime Minister (Kan), and the currency markets don’t like it! The once so-called “safe haven” of yen (JPY), is getting sand kicked in its face, and rightly so, as the new PM has previously stated his goal of a weaker yen.
[Read more...]A 14-Month Low for the Euro
May 14, 2010 By Leave a Comment
Front and center this morning, the euro (EUR) has lost more ground overnight, falling to a 14-month low, trading below 1.25 for the first times since March of 2009. Recall, that in March of 2009, the risk assets turned on a dime, and it wasn’t too far into spring that everyone was dumping dollars again… But that was then…
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Eurozone Confidence Rises
Front and center this morning, I have to tell you that we’ve had a HUGE currency rally overnight, and the rally still has legs through the European session, for I saw the euro (EUR) inch higher as I booted up my computer! What’s got the currencies, led by the Big Dog euro, so wound up this morning? Ahhh grasshopper… Come, sit, and let me tell you the story of an ancient warrior, no wait, let me tell you about the rally!
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