Market News

The global markets had been optimistically awaiting Obama’s rescue plan, which had been passed by the House of Representatives two weeks back. In the expectation of positive action by the government, some deal of risk aversion had abated that showed up in a brief positive run for the stock markets, both in the US and Asia.

Are gold coin sales a positive indicator for the US dollar? The answer to that question would fall on whether or not an ongoing period of deleveraging and risk-aversion remains a positive driver for the buck.

Seems traders are betting the US stimulus package/rescue plan will juice investor confidence. The dollar is in corrective mode, having broken below its near-term trend line support levels.

Point being, all the money the Washington gang has thrown at the economy already, one could say the job market is telling us and them it ain’t working.

If data and numbers can be trusted, then it is possible that the US recession may have seen its bottom in November-December of last year. A new report released by the Institute of Supply Management suggests that US non-manufacturing sector contracted at a slower pace in January.

Investment advisor at Blackmont Capital and friend of Currency Currents, Yves Lamoureux, made a few comments on trading strategy that we wanted to include in today’s piece

Australia’s dollar is little changed since the overnight announcement by the Reserve Bank of Australia to slice another 100 basis points off its benchmark interest rate.

Just maybe the market is catching on to the potential problems facing the commodity currencies–China. The Reserve Bank of New Zealand made it very clear by its statement and recent 150 basis point cut that this crisis is intensifying.

A nice gesture – is that what the US government is hoping to pass under our noses with their most recent stimulus bill?

The paralyzed US economy may have some reason to cheer, with President Obama managing to get a massive USD 819 billion stimulus package ratified by the US House.

I don’t know about you, but I’m becoming bailout fatigued. I’m to the point where I want all talking and commenting on the bailout to end.

Turning to the news … We got a bit of a surprise yesterday. In the US, existing home sales rose. That’s right … sales of existing homes did not fall … sales of existing homes did not stay the same. They rose.

All things gold are glittering in light of a deepening global recession/depression as the muckedy-mucks file into Davos to once again enlighten the world and cook up assorted conspiracies for the New Year

Yuppy-fication is killing us! One of the problems I’ve lamented about over the last several years is what I refer to as the Yuppy-fication of Wall Street.

I’ve been told not to use a question as a headline for an article – apparently it’s just not as effective, say the pros. But I can’t help myself; it’s not my style.

Not being a fan of mass hysteria myself, and always nervous when Kings are fabricated for a so-called democracy, I chose to watch dollar rally yesterday instead of the coronation. That was good!

Sounds confusing! Common wisdom suggests that as a nation’s exports increase it forex inflow should rise and it trade surplus should grow.

I’m not sure if you’ve heard, but today is the day Barack Hussein Obama gets inaugurated as the next President of the United States of America.

Just when you start to feel too good about your story–blam!!! We were feeling good about our dollar story yesterday–especially when euro tanked and others followed on the ECB news. But this morning, it ain’t looking so hot.

ECB rates to 0%? Well maybe not yet … but now even European Central Bank interest rates are making their way to the central bank gathering point at zero percent. The market expected the ECB to cut 50 basis points.