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  • Big Al Talks Deficit Financing...

    In This Issue..

    * Currencies hold gained ground VS dollar...
    * Swiss franc really shines!
    * Japan borrows a line from the U.S....
    * The Labor problem grows...

    Good day... And a Happy Friday to one and all! A Fantastico Friday, especially if you are a Los Angeles Lakers fan! Me? I've always been a fan of the Celtics, but since it's a long distance directory assistance relationship, it's not that big of a deal to me that they lost. When I was a kid, the Hawks were in St. Louis, and we won a championship, with Bob Pettit... OK, I was only 3... But my dad loved to talk about it!

    Well... We've had a day where the currencies gained VS the dollar, and then held their ground, for the most part... No profit taking, no debt crisis fears trading, just held their ground VS the dollar... Now, some would say... 'that's a sign that they've hit resistance and can't overtake it, which is not good for a rising asset'... But, me? Well, I would say, and will say... 'I find this to be refreshing. The last thing you want to see is an asset, which in this case is a currency like the euro, run up too much, too fast, for that WILL give the markets reason to sell. I prefer the slow gradual, stealth-like moves in currencies, so that they don't gain any attention, until the rally is well established.'

    ...
  • Jobs Disappoint Again!

    In This Issue..

    * Euro falls below 1.20...
    * Did we have negative "real" job creation?
    * Canada's labor market is strong...
    * G-20 yields nothing...

    Good day... And a Marvelous Monday to you! It was a wonderful jam-packed weekend for yours truly, and when the alarm went off this morning, I had a greater appreciation for 3-day weekends!

    Well... 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 had fallen below 1.20, for the first time since 2005, and everything other currency was getting whacked too... For the first time all week though, Gold rallied......
  • Risk Aversion Is Back!

    In This Issue..

    * Euro bashing is back!
    * Canadian GDP jumps to 6.1%!
    * RBA keeps rates unchanged
    * 7-U.S. cities have 'junk debt'...

    Good day... And a Terrific Tuesday to you! And welcome to June! As Pfennig tradition would have it... June is busting out all over, all over the meadows and the hill! Buds're bustin' outta bushes, And the rompin' river pushes, Ev'ry little wheel that wheels beside the mill! And you thought I was just a 'rock-n-roller!'

    Well... Yesterday while we were honoring the fallen soldiers of today and yesteryear, the Europeans were knocking the stuffing out of the euro once again... This time, it was a story that spread like wildfire regarding the Eurozone economy not being able to have strong growth, because of all their austerity measures... Now... Come on boys! First you slam the euro's fingers in the door (OUCH!) for not cutting deficit spending in a few countries, and when they do show a willingness to cut deficit spending, you the ruler out and smack the euro right across the wrist!

    ...
  • Germany Talks Tough!

    In This Issue..

    * Euro's big rally stalls...
    * Problems with Greek Aid Package?
    * A U.S. debt update... (you're not going to like it!)
    * What about the $53 Billion?

    Good day... And a Marvelous Monday to you! It was a wet, and sometimes dangerous weather wise weekend here in St. Louis, as a couple of tornados touched down on Saturday. It's still raining outside, and even though the euro got to get out of the rain for a bit on Friday, it's raining on the euro's parade once again this morning.

    Yes... As I left you on Friday, Greece had announced the activation of an aid package, and momentarily, things looked up for the beleaguered Eurozone. The euro continued to gain throughout the day on Friday, and well, looked like it was about to 'break out'... But that was Friday, and today is Monday... And all the euphoria surrounding Greece on Friday has been thrown out with the bathwater, and it's back to euro bashing this morning......
  • Greek debt is the euro's Sword of Damocles....

    In This Issue..

    * Greek debt crisis continues to hang over the euro...
    * Moody's says the UK and US debt ratings are secure, for now...
    * Swiss National Bank lets the franc appreciate...
    * Lots of data on tap in the US this week...

    Good day, and welcome to another week. The alarm clock seemed to go off an hour early this morning, as my body hasn't yet adjusted to daylight savings. I have heard several reasons for the semi annual adjustment of our clocks, but still don't buy into it. I think everyone should just agree to leave the clocks alone and I for one vote to leave them where they are right now, giving us an extra bit of sunlight in the evenings. We didn't see much sun here in St. Louis this weekend, as a soft spring rain has been coming down for the past 3 days....
  • A Dollar Roadblock!

    In This Issue..

    * Euro goes back and forth over 1.42...
    * Geithner make another promise to China...
    * RBA leaves rates unchanged...
    * The Mogambo on a Tuesday!

    Good day... And a Terrific Tuesday to you! Well... The currencies, led by the euro, ran into a dollar road block yesterday, not once, not twice, but three times... The first two times the euro traded over the 1.42 figure, it fell back, but recovered to again try to remain over 1.42... It was a classic case of profit taking at a line of resistance... But the third time, was no charm for the euro, and thus it ended the day and night sessions below 1.42... But hey! Has this run from 1.2578 on March 1st, been something or what?

    I see where UBS believes this is it for the euro... Sort of like the thought that a star burns the brightest right before it burns out... Hmmm... I guess they believe that the U.S. deficit problems are going to go away... Apparently, they drank the kool-aid from U.S. Treasury Sec. Geithner, who told the Chinese that the U.S. was going to shrink the deficit... He also told them that their assets were 'safe'... Ty sent me something on this that he found yesterday......