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  • Risk Assets Rally!

    In This Issue..

    * Currencies have strong rally VS the dollar...
    * Gold returns to $1,210...
    * Rosengren talks deflation...
    * Aussie Confidence soars!

    Good day... And a Wonderful Wednesday to you! WOW! The National League won for the first time since the Wizard of OZ (Ozzie Smith) played in 1996! Being a National League guy, I grew up watching the National League win these games every year, but that changed and it's been an American League affair for some time. But not this year! YAHOO!

    Another Big WOW! Goes to the currencies and metals yesterday! What a rally! The currencies, led by the Big Dog euro, left the porch and chased the dollar dog down the street all day! The euro returned to the 1.27 handle, moving through the 1.26 handle like a hot knife goes through butter! By the time I made it into the office from the doctor's office yesterday morning, the damage to the dollar was a done deal... Last night, before I went to bed, I checked the currencies just to see if there had been profit taking in Asia... And what to my surprise did I see? But no profit taking, what glee!

    ...
  • US data comes in stronger than expected...

    In This Issue..

    * US data comes in stronger than expected...
    * Worries over Greece pushes dollar higher...
    * China grows at 11.9%...
    * Australia may look to pause?...

    Good day, it is tax day which is not usually a happy day for the 51% of the folks who have to pay the taxman. Chuck would take the opportunity to break into the Beatles song right now, but I'm not as good with lyrics, so you will just have to hum it in your head. The dollar was down in trading yesterday, as most of the data released was positive and emboldened traders to move money out of safe havens. But overnight the Asian markets decided to take the dollar higher, and the Europeans are continuing to buy greenbacks. I'll get to what caused the big change in a second, but first I will review all of the data we got yesterday morning....
  • Brazil To Benefit From New Carry Trade?

    In This Issue..

    * The dollar fights back...
    * Government deficit spending deep sixes us...
    * Brazilian rate hikes on the table...
    * Round Two of the PPT thoughts...

    Good day... And a Thunderin' Thursday to you! Well... It's not really Thunderin' outside, but it is snowing, with about 3-4 inches on the ground already, and the snow coming down so thick that seeing is difficult. I made it here, but then I drive a car that was made to go in stuff like this! Pretty soon, my phone will begin to ring, with colleagues calling to ask me how the roads were...

    Well... We had more probing higher in the non-dollar currencies only to see the gains wipe away at the end of the day yesterday. Still, as I told a radio audience in Oregon yesterday, traders, investors, etc. still believe the euro is worth more than the dollar by quite a bit... Gold also gave back some gains overnight......
  • The Bias To Buy Dollars Remains In Place...

    In This Issue..

    * The dollar continues to get bought...
    * The A$ gets rocked!
    * Riksbank keeps rates unchanged...
    * 10-year yields inch higher once again...

    Good day... And a Wonderful Wednesday to you! The end of the line, so-to-speak for me until after Christmas, as I begin my winter vacation tomorrow. Yesterday, I told you about having a conversation with one of my fave economists on Monday night. Well, she told me that she was worried about me. That when she reads the Pfennig, I sound like I'm too stressed out, and taking this stuff to personally. She said she was afraid I was going to have a heart attack writing the Pfennig one day!

    WOW! OK... So here's the deal today, my last Pfennig before Christmas... I'm not going to talk about the deficit spending fools in Washington D.C., I'm not going to talk about the national debt, I'm not going to talk about anything that gets my feathers ruffled... It's all seashells and balloons for yours truly today!...
  • 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.

    ...