Market News

Looks like we’ve got a whole table full of data today right before the Thanksgiving holiday! Check it out in today’s round up!

Perhaps you saw this morning’s release of Euroland’s economic data.German GDP jumped by 0.7% in the third quarter. Adding to GDP was an inventory build and capital investment; subtracting from GDP was consumption and trade.

After slashing rates to near zero and printing enormous amounts of money, Japan finds deflation, its old enemy, creeping back. What will the BOJ do now?

The dollar took a serious beating yesterday. With the amount of economic data due today, could the dollar regain its losses? Check out my daily economic roundup for what’s next!

John Ross wrote in a recent Currency Currents he didn’t want to rip-off the Milk Board advertising campaign by asking if you’ve “Got Gold.” But it appears more and more have “Got Gold.” Yet another new high was chalked up this morning in white-hot yellow metal. This comes at a very bad time for me and may reflect a lot deeper systemic concerns than we now realize.

It’s the start of a new week! Would we see a turn around in risk sentiment given last week’s aversion from the markets? See what’s up on my daily economic roundup!

I noticed a Reuter’s poll today. All the top banks were asked to provide their guess on just how undervalued the Chinese currency–yuan- was against the US dollar. The average guesstimate was about 20%.

Yesterday was all about risk aversion and US dollar domination. Would this price behavior carry on today or would traders take advantage of bargain prices?

For the past year – since November 4, 2008, actually – I’ve thought about walking around wearing a T-shirt that reads

Fed Chairman Ben Bernanke and ECB President Jean Claude Trichet are arguably the two most influential financial honchos around. As the global economy emerges from the worst recession since WWII, both leaders are stressing “the need” for a stronger dollar in order to stabilize international trade and prices.

Unsure what to make of yesterday’s mixed trading? Perhaps the release of some high impact economic data today will give more direction for traders!

We are taking a little break today. In place of my usual ramblings, below is an excellent article by Chris Fournier and Yasuhiko Seki of Bloomberg laying out the case for a weak yen based on the very ugly set of economic fundamentals and debt picture facing Japan.

After two days of losses, the dollar finally found buyers yesterday as ECB President Jean-Claude Trichet showed support for the Fed’s strong dollar policy. Sentiment can shift on a dime so better brush on up today’s economic events!

This isn’t an entirely new idea – we’ve made the connection in Currency Currents before and have since seen it presented elsewhere.

There seems to be something fishy going on with the US retail sales… First, there’s the huge downward revision on the September sales figures then there’s this gaping discrepancy between October’s headline and core retail sales readings. What’s up with that?

Good day forex peeps! Most of the majors experienced a couple of ‘shocks’ following a speech delivered by Fed Chairman Ben Bernanke yesterday. Will we see a similar kind of volatility today? Check out our daily economic roundup!

Describing Russia, Winston Churchill said, “Russia is a riddle wrapped inside a mystery inside an enigma.” I wonder how he would describe modern China; I think it would be fun to hear that quip.

Got the Monday blues? Well, I hope my daily economic roundup will help you snap out of it! There’s plenty of high-impact reports due this week so you better read up!

The latest G-20 communiqué said nothing new. You know … where the leaders told us they’re not yet ready to rein in the stimulus they’ve provided to their respective economies.

The dollar finally managed to gather strength and retrace some of its losses in yesterday’s session. This day could prove to be an important day for risk sentiment as euro zone’s GDP report is due. Be prepared and check my daily roundup!