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  • Another New All-Time Record Gold Price!

    In This Issue..

    * Currencies continue to gain on dollar...

    * Gold nears $1,300...

    * RBI hikes rates, boots rupee...

    * More on TARP...

    ...
  • The Euro Trades Through Resistance!

    In This Issue..

    * Most currencies rebound...

    * Gold reaches another record high!

    * Tons of data today...

    * Glad they didn't take TARP...

    ...
  • Aussie Jobs Surge!

    In This Issue..

    * High yielders rebound...
    * Kiwi surges 2-full cents!
    * SNB softens tone on franc strength
    * The U.S. Debt Clock...

    Good day... And a very cold Tub Thumpin' Thursday to you! I remember back to this summer, when in August, we were camping, and it was only 75 degrees, and old man at the country store said to me... 'We're going to pay for this come winter'... I have a bad feeling right now that the old man will be bang on! UGH!

    OK... A chill crept over the dollar bulls overnight, when Australia announced their latest jobs data. Since that time, the dollar has been sold, albeit not frantically, but sold nonetheless, and the high yielders, like Aussie dollars have been the main destination of those funds created from the dollar sales.

    ...
  • Gold Soars To Another All-Time High!

    In This Issue..

    * $1,055 for Gold!
    * Global recovery prospects fuel run on the dollar...
    * Trichet to defend the dollar today?
    * Central Banks are diversifying...

    Good day... And a Thunderin' Thursday to you! It's raining here in St. Louis, so, it must be Thursday! It's a big night for yours truly, but I'll talk about that at the end... We've got some big moves going on in the currencies and metals, so we had better get to it, and save the chit-chat for later, eh? But first, today is the funding deadline on our latest BRIC MarketSafe CD... We'll have one more in November and then that's it!

    OK, front and center this morning, Gold has soared to another all-time high! When I turned on the screen this morning, Gold was flashing a great big $1,055 figure... WOW! But wait! OK, now that sounded like an infomercial... But wait! If you act now, you can get double the Ginsu knives! HA! OK, getting back to the original, but wait... Gold and Silver for that matter, aren't the only risk assets moving higher this morning... All 16 of the countries that are deemed to be the biggest U.S. trading partners, have currencies that are taking liberties VS the dollar this morning......
  • RBA Raises Rates!

    In This Issue..

    * Pandora's Box of rate hikes is opened!
    * Is the dollar being removed from oil trades?
    * Deficits do matter, eh?
    * Gold heads toward its all-time high...

    Good day... And a Terrific Tuesday to you! A Tuesday morning that is seeing a HUGE currency rally VS the dollar on the news that the Reserve Bank of Australia (RBA) opted to go ahead and hike rates now, and not wait for November's meeting, as I had thought they would do! WOW!

    The first hike... It has opened Pandora's Box of interest rate hikes around the world... For, if the RBA went this soon, then we can expect Norway's Norges Bank to push their rate hike earlier on the calendar, maybe even later this month! And they won't be the only ones! Look for New Zealand to hike rates this year, and who knows what other country (Brazil?) will follow after that... But I see them coming, and they're marching the death march of the dollar!...
  • A Turn Around Tuesday!

    In This Issue..

    * Another Treasury auction today...
    * Goldman says to buy euros!
    * Oil fuels Commodity Currencies!
    * RBNZ to meet tonight...

    Good day... And a Wonderful Wednesday to you! Well... Yesterday was 'Turn Around Tuesday'! Add to that, the fact that there were a number of reasons for the euro to lead the charge for currencies VS the dollar yesterday. And... A word from one of the economists that I keep on my list of 'to read'... So, let's get to the tape from Turn Around Tuesday!

    I heard yesterday someone say 'well, we sure turned around today in the currencies'... And I thought, Shoot Rudy, why not name it Turn Around Tuesday? Then I went back to the history page on my trusty Bloomberg, and saw that on 4 of the last 5 Tuesdays, the currencies did in fact 'turn around' their performances from the day before! Not that this is something we can hand our hats on, and make trades accordingly on Monday nights / Tuesday mornings... But, it's an interesting fact nonetheless!...
  • Rising Treasury Yields...

    In This Issue..

    * Another Treasury auction today...
    * Spending habits come back to haunt reps...
    * Some healing in the currencies...
    * 10 Banks to repay TARP today...

    Good day... And a Terrific Tuesday to you! Well... I sure stirred up the hornet's nest yesterday... Some people didn't think I should express my opinion... But that's OK... Here's the skinny... I wrote yesterday about the farce that the jobs report was, and what a feeble job the media did in reporting the 'real numbers'... I then threw something in the Pfennig that I don't normally do, just to see what was more important to people... The fact that their Gov't lies to them, or the fact that they don't see eye-to-eye with me on the President...

    Given the response, I'd say that most had their eye on the ball with the jobs farce... And that's all I'm going to say from here on out......
  • Game On!

    In This Issue..

    * Risk Assets soar!
    * What's behind this stock rally?
    * Charts and fundamentals...
    * Aussie Consumer Confidence drops...

    Good day... And a Wonderful Wednesday to you! A total reversal of Friday's risk assets sell off was the soup du jour for Tuesday... This is beginning to remind me of a Wayne and Garth street hockey game... Here comes a car... Game off... Game on...

    So, as I just said, Tuesday saw the currencies trade right back to the levels they enjoyed VS the dollar last Thursday, before risk assets began to sell off on Friday. These are the types of trading patterns you normally see when the assets involved are getting ready for a break out... A jail break... Tonight there's going to be a jail break!

    OK, I'm not saying that the jail break takes place tonight, I just broke out in a song from the 70's... That's all... Seriously though, I hope we're seeing a return to fundamentals....
  • A Leak Of The Stress Tests?

    In This Issue..

    * Currencies trade in a tight range...
    * U.K. Budget announcement...
    * When will Treasuries follow Gilts?
    * Gold as a currency...

    Good day... And a Wonderful Wednesday to you! Another bad night for your Blues, which means their season has come to an abrupt halt... They are a young team, so they'll be back, next year...

    OK... The euro traded in a very tight range yesterday with a bias to sell dollars, but like I said, it was very tight... The Aussie dollar rallied very strongly during the day, adding over 1-cent to its figure. It sold back some of that 1-cent gain overnight though. As the upbeat stock session, immediately turned sour after the close... As I said yesterday, there was a lack of data to help the currencies along, and they had to rely on the earnings season for direction....
  • It's Not My Fault, It Must Be Yours!

    * What's $78 Billion among friends? * Currencies fade with bias to buy Gold... * Could the Carry Trade Unwind be done? * U.S. soccer beats Mexico... ** It's Not My Fault, It Must Be Yours! Good day... And a Thunderin' Thursday to you! Well... Front and center this morning, I'm going to tell you something that will surprise a few and make a few happy. I've had my say on the Bailouts, TARP, Stimulus, and spending. I've beaten them to a pulp, and some readers have expressed their contempt with me carrying on with this beating. So... Unless something cracks, I'll just leave it all as it stands, and go on with life. This all has been too much for my blood pressure to take! I'll report the facts on this stuff, and leave the commentary for people that think they "know better"... For instance, it was reported the other day that the Treasury Dept. has overpaid for stock received from TARP recipients by $78 Billion. You see, for every $100 given in TARP, the Treasury was to receive $100 in stock / assets, but when all the beans are counted, the Treasury is $78 Billion short on stock /assets... But, what the heck, what's $78 Billion among friends?...
  • The Geithner Plan Day!

    * Talking stimulus again...* Currencies rally, then sell off... * Aussie Business Confidence slumps... * The Mogambo on Gold... ** The Geithner Plan Day! Good day... And a Terrific Tuesday to you! The President talked to us last night regarding the "new and Improved" Stimulus package. He sounded a bit defensive, don't you think? But, I will say this, he tried to stay on the high road, when defending the package. He really ripped people like me, that oppose the package, and see it as spending only. I think he forgot to mention that people like me that oppose it, oppose it because we can't afford it! But the President firmly believes our economy could completely collapse without this, so I can see where he feels the urgency to get this bill signed. OK... Enough of that! I don't like talking about stuff like that, because I'll have 100 people write me nasty emails about politics, and 100 people write me that I was bang on!...
  • Gold Moves Higher With The Dollar...

    * Currencies in a tight trading range... * Bank of Canada follows the Fed... * Look who's Talking Gold... * Adding up the spending... ** Gold Moves Higher With The Dollar... Good day... And a Wonderful Wednesday to you! The first full day of the new regime... I will say this, it makes one proud to be an American when you can watch a peaceful, even extravaganza, handing over of leadership... It really rips me up when I read that the Wall Street Boys really contributed cash to the inauguration proceedings... Making certain the new President knows who contributed cash to his party... Probably cash they received from the Gov't in bailout payments! Nah... That couldn't happen... Could it? Well... The currencies didn't really trade outside of a very tight range yesterday, except for the pound sterling, which continues to fall VS the dollar, euro, yen, and probably even the Zimbabwe currency! OK, that's harsh! But I wanted to paint the picture, so that everyone understood the grave situation the pound sterling is in... The Bank of England has decided to take 70% control of the Royal Bank of Scotland, and nationalization isn't far behind for that bank, and a few others......
  • Passing Out The Dollars...

    * Risk Takers return... * Bank of America gets more cash! * 30-year mortgages below 5%! * Looking for direction... ** Passing Out The Dollars... Good day... And a Happy Friday to one and all! A Fantastico Friday so far, let's keep it going, eh? It is downright cold here. I'm reminded of that one looooonnnnngggg winter I spent in Des Moines, Iowa... This artic cold was the "norm" for that winter there... I didn't need any other reason to move back to St. Louis, once the spring thaw came around! Well... Right out of the starters blocks this morning, we have a change in sentiment going on... The Risk Takers are back in the driver's seat this morning, as the markets are feeling better about things given that the remaining TARP money has been given to the Obama campers to dole out, and Bank of America came away with an emergency lifeline from the Gov't that totals about $138 Billion... $20 Billion in cash, right here, right now, with the rest spread out between liquidity access and guarantees... And... The TARP money... Given the fact that the Obama people have been itching like they just rolled around in poison ivy, to get their hands on that money... You've got to wonder... Are these guys going to do their best to out do the previous administration when it comes to piling up debts?...
  • Risk Aversion Reigns Supreme!

    * Currencies under dollar pressure * How strong can yen get? * TARP... * ECB rate questions... ** Risk Aversion Reigns Supreme! Good day... And a Terrific Tuesday to you! I'm draggin' the line this morning, but will get through this with my usual you know what and vinegar! The euro is trading at a one month low this morning, and the high yielders are getting stepped on again after enjoying a month a risk taking in the sun. That about explains everything, so I'll go the Big Finish now... Gotcha! Let's see what else is up on this cold and blustery Terrific Tuesday... So... It looks as though Risk Aversion is reigning supreme once again. I just don't buy into the dollar being the "safe haven" with all that's going on here. But, that's the way it is, and I can't change it. On a side bar, I used to have a customer that was convinced that I could move the markets with the Pfennig... I always thanked him for his complimentary remarks, but would hang up and have a chuckle, as IF I could change the way things are with my simple, humble little newsletter!...