May 2010 - Daily Pfennig

In This Issue..

* Bundesbank hurts euro...
* A$ is best performer overnight...
* Is Gold a euro replacement?
* 10-year Treasury yields soar higher...

Good day... And a Tub Thumpin' Thursday to you! It's Tub Thumpin' because I got the go-ahead for the next step to replace my eye with a prosthesis that looks like an eye... Just looked up to see Robin Meade back from vacation, so it's a double Tub Thumpin' Thursday now!

OK... Recall yesterday's talk about the trading pattern that had existed for 4 consecutive days? Well, that was throw to the roadside yesterday, as the U.S. session went back to beating on the euro, and other currencies......

In This Issue..

* Euro drops 2-cents overnight...
* All Risk is taken off the table today...
* Geopolitical problems steady Gold...
* The Budget Cuts just keep coming!

Good day... And a Terrific Tuesday to you! Well, it was almost a "perfect ride" to work this morning, as I hit all the green lights until the very end! UGH! See, it doesn't take much to make me happy!

The euro's green light ended last night too, as 'Now It's Spain' (NIS)... As I was packing up to go home yesterday afternoon, the euro had moved beyond 1.24, and I said, 'I wonder what's got the euro so perky this afternoon'... Well, that 'perky' feeling the euro had at that time was wiped out and more by fears that Spain's problems are now going to take center stage... Greece is an afterthought at this point, now it's Spain......

In This Issue..

* Euro recovers 2-cents...
* Gold gets trashed!
* Questions on China...
* Counting the deficit correctly...

Good day... And a Thunderin' Thursday to you! The heavy rain is back! Just in time to ruin my first Cardinals game of the year too! Yes, a day game today, and it's raining... UGH! Oh well, time to start the letter... There are a couple of Big things to talk about today that happened yesterday, so let's get set, ready, go!

OK... Front and Center this morning, we have the euro's rise yesterday, and Gold's awful performance... Let's go to the euro's rise first...

The euro did a little magic act yesterday, defying gravity, by rising VS the dollar during the day, while every other currency not called U.S. dollars, Japanese yen, or Chinese renminbi, was getting sold like funnel cakes at a state fair. Does this sound suspicious to you? It did to me... And I told Chris during the day, that it sure looked like European Central Bank (ECB) intervention......

In This Issue..

* Euro bounces off 4-year low...
* Gold Sells off again!
* Greek receives first installment...
* RBA to take a summer vacation...

Good day... And a Terrific Tuesday to you! I think the rain has stopped, for now at least! I feel like someone picked up St. Louis, and moved it to Seattle! Hey! It rains there a lot, but they know it is going to do so! Me? I begin to feel like I have cabin fever, not having the sunshine... So... Hopefully today, eh?

OK... The price action in the euro yesterday, which has dominated the currency trading for a month now, was something out of the Twilight Zone... Help I'm slipping into the Twilight Zone, The place is a madhouse, feels like being cloned... Yes... That Twilight Zone... While the other currencies from Norway and Australia, were getting hammered, for no apparent reason I must add, the euro rallied in the early morning to near 1.24... Then turned on a dime, and by the time my turkey sandwich on wheat arrived at my desk, the single unit was back to trading below 1.23... But... Then, by the time I packed up to go home, the euro was back to 1.24... The strange thing about this swing, was that there was nothing, nada, zero, zilch, a big goose egg of news, data, or official slant to trade off of......

In This Issue..

* Euro trades in tight range
* Gold hits new all-time high...
* Audit The Fed gets gutted...
* Budget cuts all around, but not here!

Good day... And a Wonderful Wednesday to you! Some wild storms ripped through our area overnight and left a mess! I had to change my route to work 2 times, due to road closures. But, just like the Pony Express... I made it here, and so the Pfennig will go out!

Well... Yesterday was a change in the weather for the currencies, as we saw a very tight trading range with no wild swings up or down, which has been the routine for a month now. The euro traded in a range of 1.2675 to 1.2740, going back and forth all day... This morning, as I turn on the screens, the euro is at the bottom of that range....

In This Issue..

* Euro rallies on aid package announcement...
* Scandis outperform on the day...
* Debt clock / bomb begins to tick away...
* SEC to look at Moody's...

Good day... And a Marvelous Monday to you! I hope all you Mothers had a Super Sunday, Mother's Day! It was a beautiful day here, for the most part, albeit more chilly than usual for May. It was also a Super Sunday according to the currency markets, for the Eurozone... So... For more of this historic announcement, read on...

Well, Front and Center this morning, we're seeing some really big moves by the currencies, up and down... The euro has gapped all the way to 1.3094, and then gapped back down to just over 1.30... But still, doesn't that 1.30 look much better compared to last week, when we actually saw a 1.25 handle briefly? So... What put the tiger in the euro's tank this morning?...

In This Issue..

* Euro continues to get sold...
* Freddie Mac needs $10 Billion more!
* Auctioning another $80 Billion in Treasuries...
* Norges Bank does the right thing!

Good day... And a Tub Thumpin' Thursday to you! I don't really have a reason for it to a Tub Thumpin' Thursday, just thought it would be good to get going into the weekend early! I'm slowly getting back into the swing of things here. There's a parking issue that's got me so ticked off right now, but that's not what you came to read about, so... Let's get going!

Well... The rout that was on with the euro continued for most of the morning yesterday, but then suddenly, it stopped, and we saw the currencies & Gold turn around... It was just like I had said the day before, that the euro would probably reach oversold levels, and we could see a mini-rally... And we did!...

In This Issue..

* Euro continues to get sold...
* RBA shocks markets with statement...
* Brazilian real bucks the trend...
* Gold continues to move higher...

Good day... And a Terrific Tuesday to you! Thanks for all the 'Welcome Back' notes and e-mails yesterday... It helped make the day rush by in a heartbeat! Before I knew it, I was yawning, and getting tired, so... Out the door I went! But all-in-all, it was good to be back in the saddle, and to see all my colleagues here at EverBank again.

Well... Front and Center this morning, is the fact that the NY boys and girls didn't like the Greek Bailout one iota yesterday, sending the single unit below 1.32... When the traders in Asia and London returned last night and this morning, they too did not like what they saw and sent the euro even lower......