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  • Taking Back Lost Ground.

    In This Issue.

    * Bias to sell dollars remains in play.

    * Norway & Sweden gain.

    * Central Bank meetings today.

    * BOE see inflation pressures.

    ...
  • Dollar continues it’s slide...

    In This Issue..

    * Dollar continues to slide...
    * US GDP contracts but not as fast...
    * Nordic currencies outperform...
    * Japanese yen continues to fall...

    Good day... The last day of July is upon us. Time just seems to keep moving faster as it seems summer just got started. The fall of the dollar also accelerated yesterday as investors moved back out of the 'safe haven' of US$ and continued to shop for more yield. The greenback tried to stage a bit of a rally in early European trading, but has fallen back off again as I sit down to write the Pfennig.

    I got a call from a Reuters reporter yesterday mid morning to ask why the dollar was rallying at the same time stocks were moving higher. I quickly paged through my Bloomberg looking for some sign why both were heading higher. The trading pattern which has been established over the last few months has these two asset classes moving in opposite directions; good news for the US economy sends stocks higher and the dollar lower as investors retreat from defensive 'safe haven' positions in the US$. The opposite occurs whenever there is data which shows the global economic recovery is faltering, stocks move lower and the dollar rallies with safe haven buying....
  • Currencies Continue to Rally...

    In This Issue..

    * An auction announcement...
    * Euro soars!
    * Gold back to $900...
    * Who's telling the truth?

    Good day... And a Happy Friday to you! A Fantastico Friday to boot! I leave for Bermuda very early tomorrow morning, so no late night shenanigans for me tonight! HA! I'm still trying to make sure I've beaten that pneumonia, and being a "good boy"!

    Well... Front and center this morning, we have a Big currency rally going on... Recall yesterday, I told you of the beginning of the rally... Well, it really got legs as the day went on, and once again, it was not sold off overnight, but added to! Here's what I believe, and you won't see this anywhere else, my friends, is moving these currencies so violently higher VS the dollar......