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  • House prices move up, but consumers still aren't confident...

    In This Issue..

    * House prices move up...
    * US consumers are worried...
    * Japanese retail sales drag...
    * Australian rates to rise...

    Good day... We finally had a bit of volatility in the currency markets yesterday, as conflicting data released in two separate reports moved the markets in opposite directions. The dollar started off the day drifting lower, as has been the pattern over the past 2 weeks. But during the late morning the dollar started gaining strength, and has barely paused its ascent overnight.

    Many of you probably heard the news reports that home prices finally rose during the month of May, and this is what had the dollar on the ropes yesterday morning. The S&P/CaseShiller Home Price Index reported that home prices in the US rose ever so slightly in May compared to April. But if we look at the annual figures, home prices are still down just over 17% across the country. Media outlets trumpeted this 'feel good' story with many economists declaring that housing has now turned a corner. This is a good sign, as prices have to stabilize before the housing sector can recover, but it is hard to get overly excited about a 17% drop YOY. The monthly figure rose just .5%, reflecting the first monthly gain since July 2006. Another report showed the share of homes sold as foreclosures or otherwise distressed properties fell to about 31% in June, down from a high of 50% seen earlier this year. With unemployment still creeping up, and the US consumer continuing to save instead of spend, I am going to need to see a couple of months of stabilized prices before I am convinced housing is turning the corner here in the US....
  • The ECB Clash Over Policy Again...

    In This Issue..

    * Initial Jobless Claims rise...
    * PPI does too!
    * Euros get hung out on a line...
    * Gold makes a comeback!

    Good day... And a Thunderin' Thursday to you! It may not be Thunderin' where you are, but apparently it was yesterday in my little river town, as I heard we had some shingles blow off... And... It certainly is Thunderin' over in the Eurozone this morning, I'll tell you why in a minute. So, let's get going don't want to get caught in any of that Thunder!

    I finished the last of my 3 presentations yesterday, and called it quits, as far as walking back and forth to the Conference Center. They'll just have to do without me at the booth! But the presentation was good, I think, and I made some very important points. None of which, were brand new to Pfennig readers!...
  • Bad news for GM and Chrysler rallies the US$...

    In This Issue..

    * Bad news for car makers rallies the US$...
    * Yen comes back strong...
    * Singapore to devalue?...
    * German Chancellor Merkel gives warning...

    Good day... And good Monday morning to all of you. I can't believe March is nearly over, it seems as though it just started. March will end up being a pretty good month for the currency markets, as investors exited the safety of US treasuries and started moving funds back into higher yielding assets. But the markets continue to be volatile, and news released on Friday and over the weekend has sent these investors rushing back to the safe haven of the US dollar.

    The Japanese Yen and US dollar benefited after a US Government official said Friday that bankruptcy may be the best option for GM and Chrysler. The dollar continued to gain strength this morning after US Treasury Secretary Geithner warned yesterday that some financial institutions will need 'large amounts' of aid. When the Treasury Secretary says large amounts, you know it is going to be billions or trillions! Geithner was making the rounds of Sunday morning talk shows to try and justify the money already spent and prepare the taxpayers for another request of funds....