March 2010 Monthly Archive

Hungary Lost its Appetite

A reader shot us an email yesterday to bring up two things: 1. That a good number of analysts he follows is expecting the Canadian dollar to continue strengthening versus the US dollar. 2. That a good number of analysts he follows is expecting the euro to weaken substantially still versus the US dollar. Read more

A hefty helping of chartage.

Let’s see: Twenty-years of Keynesian pump priming in Japan; cost-several trillion Japanese yen; mired deep in deflation with anemic industrial production-priceless! Read more

Tip-toeing a fine line of support

Friday was a good day for the euro. But it wasn’t enough to eke out a gain on the week. And that could be very telling. Read more

Trichet surrenders with the troops?

Mr. Jean-Claude Trichet, maximum leader of the European Central Bank (ECB) understands the market implications of this surrender of authority/responsibility. Of course Eurozone state “leaders” seem quite happy to be able to “save our comrade Greece” with other peoples’ money. There is unity on that score. Read more

We’re fine, but you may want to do something about …

In other words, don’t worry about us; we’ll worry about ourselves. But if you do find it in you to lend a helping hand then think about what your efforts might be able to do for the common currency. After all, we’re in this together, brothers. Read more

European Monetary Dis-Union and schadenfreude!

Given the German inspiration for the events playing out in the European Monetary Dis-Union, schadenfreude is a word rushing to the front of my think skull this morning as the euro puts in a new low in this cycle against the US dollar. Read more

Will ComDols Play Catch-Up?

We just finalized it yesterday, and it’s a quick read, packed with the latest details and graphs on what’s tearing apart the Eurozone countries and will ultimately be tugging hard on the euro’s ankles for many months to come. Read more

“Our currency isn’t undervalued,” it is to laugh! But China has real fear.

It’s coincidently Orwellian to hear the land of the giant puzzle palace pretend their currency isn’t undervalued. The Chinese Ministry of Mis-information is burning the midnight oil, especially now since oil is back under $80 per barrel. Read more

Hodgepodge

US vs. German Yield Spreads – Tracking on the recent dollar index rally… Read more

When It Rains It Pours, in Euroland

The euro was the big loser yesterday, even when most other majors were able to either eke out gains or at least hold their ground versus the buck. Today the buck is higher versus the entire pack. Read more

If Richard is right the US smokes Europe!

Last month, we did notice that US consumer credit rose unexpectedly. It didn’t seem to get much press, as all eyes were focused on non-farm payroll. Read more

Your Daily Recommended Allowance of China Opinion

Have a look at this gem from Ambrose Evans-Pritchard: Is China’s Politburo spoiling for a showdown with America? I won’t comment on it since we’ve included much of these same ideas frequently in the pages of Currency Currents already; nevertheless he presents these ideas forcefully and succinctly. Read more

Markets Misbehave. Certainty is fantasy!

How many times have you heard this little piece of inanity uttered: “Markets hate uncertainty.”? I heard it said on Friday as I was “passing through” one of the TV “financial” shows on my way to the Home and Garden Channel–the only place safe on the dial for me. Read more

Friday Rant.

The US will stop making a political issue out of it when China unleashes that puppy to run freely. How about that? So let’s commend President Obama for calling out China’s currency policy which could be dubbed “politically dictated”, at least. Read more

Targeting the Canadian Dollar Today

Waiting on the trade balance for Canada, eh? Well, at 8:30 EST we’ll get Canadian capacity utilization, import and export figures and the trade balance. Read more

Why will the euro eventually goes to par or beyond? Basic macroeconomics!

Remember, macroeconomics is like working with Playdough. When you push on one spot, there is a similar or equal reaction in another… Read more

European Mother Funders (EMF)

You probably read about it already; maybe you didn’t … Being proposed is a European Monetary Fund (EMF) — similar to the International Monetary Fund — that could step in and bail out Eurozone countries facing troubled fiscal situations. Read more

Maybe the Buck Loses the Next Race to the Bottom

Now that global recovery is gaining momentum, according to the pundits, and risk appetite is back on the table, maybe the US dollar index is due for correction Read more

A Full Opening Act … to Keep Traders’ Blood Flowing

February US Nonfarm payrolls are reported tomorrow. Typically it’s a snooze-fest in the markets for the 24 hours or so leading up to that report. Read more

Greece stabilized? If so, what next for euro? ECB rate cut?

Some analysts have the view that if Greece is stabilized it will prove the euro has passed a major test, and lead to a fresh new rally against the US dollar. Read more

The Free-Market System Couldn’t Care Less

From the very first hint at a government stimulus effort in the US, there were plenty voices in the opposition’s camp trying to point out the perversity of pumping money into an economy that was already awash with debt and over-leveraged. Read more

Pound pounded, Euro fading, and Reader mail

Ouch! The British pound got hammered this morning…and the euro ain’t acting as though the German/French plans to bailout Greece are going so well. Commodity currencies flat…but will likely take their cue from stocks again today. Read more