Currencies rebound VS the dollar…Aussie and kiwi lead the currencies higher…Data and Central Bank speeches today…Gold rebounds back to $1,000! And Now… Today’s Pfennig!

Good day… And a Wonderful Wednesday to you… Instead of a “turn around Tuesday”, we’re seeing a whiplash Wednesday! And for once in a month of Sundays, the Big Dog, euro didn’t lead the other little dogs (currencies) off the porch to chase the dollar down the street!

No… This time it was the currencies of Australia and New Zealand that led the charge VS the dollar… The euro has taken up the charge since opening the doors to a new day of trading in Europe, so… It looks like it’s a “take the dollar to the woodshed day”…

OK… Let’s start first with the goings on yesterday and then build to a big crescendo! Yeah, right, like I can do that! HA! Any way…

As a reminder, yesterday we

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A bias to buy dollars remains…Looks like coordinated jawboning…Fujii now talks about intervening! Gold remains below $1,000…And Now… Today’s Pfennig!

Good day… And a Terrific Tuesday to you! Well… Stop the presses… You know the presses that are talking about the countries that are on the docket to begin a rate hike cycle, because… Russia has thrown a cat among the pigeons this morning with a rate CUT… Let me tell you why this is a big deal…

Well, when everyone is thinking that the G0-GO countries of Norway, Australia, and Brazil will probably begin their rate hike cycles this year, and other won’t be far behind… While the U.S. drags its feet and wallows in the zero rate mud… The thinking was that the rate differentials to the dollar would begin to widen, causing even more pain for the dollar. And, the reason these countries were able to raise rates

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I should immediately reassure my readers that I am not going to re-account or even continue Macro Man's story of 2007 in which Sherlock Holmes was looking for a vanishing bid in risky assets. Also, I am not sure that we are actually looking at a bid which will vanish but one which will perhaps taper off gradually or so at least is the estimated scenario policy makers would like markets to believe in. Of course, recent messages from the BOJ suggested a very cautious stance towards the economic outlook and although the ECB's chairman Trichet has ardently argued that an exit strategy from extraordinary financing provisions, the statement that, now is not the time to exit, still echoes most of the official messages coming from the ECB.

But perhaps more important than when to exit is the question of how and whether indeed it will be so

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Chinese stocks rise 5%! Risk Assets follow! OECD forecasts faster global rowth…Gold & Silver kicking sand again! And Now… Today’s Pfennig!

Good day… And a Tub Thumpin’ Thursday to you! Let’s hope it remains a Tub Thumpin’ Thursday later today, as I head downtown to watch my beloved Cardinals play a day game! For those of you who are baseball fans, you know what I mean when I carry on about how baseball should only be played during the day!

OK… Before I get to the currencies, economies and the dolts in the world, I wanted to briefly talk

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On Wednesday, US stocks opened the third quarter with a sharp rally but the averages finished well off session highs as caution prevailed ahead of Thursday's jobs report.  The markets opened strongly with the Dow Jones industrial average shooting up 133 points before paring some gains to close up 57 points, or 0.7%, to 8,504.06.  The Nasdaq added 11 points, or 0.6%, to 1,845.72 and the broader S&P 500 index edged up 4 points, or 0.4%, to 923.33.  A better-than-expected report on Chinese manufacturing and General Mills' (NYSE:GIS) solid quarterly earnings also helped sentiments on the Street as investors shrugged off a report from ADP which showed companies in the US cut 473,000 jobs in June.  

US stocks had declined Tuesday after an unexpected decline in consumer confidence sparked a sell off, but the S&P 500 index managed to end the quarter with a 15.2% gain, its best

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Currencies get a tourniquet… BOE And ECB leave rates unchanged…Political uncertainty in the U.K…Aussie dollar to rally further? And Now… Today’s Pfennig!

Good day… And a Happy Friday to one and all! A Fantastico Friday, as we all will be heading to the Ballpark tonight to watch my beloved Cardinals! This should be a fun time by all! It’s also a Jobs Jamboree Friday, and we’re about to witness something that hasn’t been seen in 25 years… A “published by the BLS” Unemployment Rate of 9%!

OK… You know me… I think the (Bureau of Labor Statistics) BLS

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Yesterday was an absolute “10” on the crazy meter, and yet “We the People” just continue to sit and take whatever the government and media tell us is “best for us in these uncommon times.” I’ve got some interesting words on this later in the letter… It’s time for me to get on my soapbox once again, so… At least I’ve prepared you! But first… Some currency news!

Well… Yesterday, I left you with the thought that the currencies were selling off, after the Asian central banks all made statements regarding their support of the dollar as the world’s reserve currency… Here are some further thoughts on that.

Roll up to the mystery tour… The Magical Mystery Tour is waiting to take you away…

Yes… It’s U.S. Treasury Secretary Geithner’s Magical Mystery Tour (which should be re-named the Magical Currency Tour)! OK… Remember yesterday I told you the Asian countries of S. Korea,

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Industrial Production declines…  Stocks sell off, leading currencies down…  Indian election spurs a rally…  China stockpiles commodities… And Now… Today’s Pfennig!

Well… As much as I dislike having to say so, because I told you this might happen… The currencies have given back some major ground VS the dollar since Friday morning. It’s all tied to the fact that the euphoria going around the markets the previous week regarding stocks and the U.S. economy, came to a screeching halt last week. I pleaded and begged for the currencies to break this link to stocks, but it wouldn’t / didn’t happen and voila!

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div class="body" pBy Claus Vistesen: Copenhagenbr //ppOne cannot fault the good journalists for trying, one really can't. Yet, as hard as they tried they could not get President Trichet to concede that the ECB has now entered some form or state of quantitative easing as well as they could not wring an answer as to whether the 1% interest stance would constitute an intermediate floor for the ECB policy rate. Before, however, we get ahead of ourselves let us begin with the beginning./p pThe almost trivial outcome of today's council meeting in Frankfurt was actually the decision to push the main nominal interest rates down 25 basis points to 1%. If anything, risks to this decision seemed to come from the upside in the sense that all the talk of impending green shoots and second derivatives would make the ECB pause. What was ...

One cannot fault the good journalists for trying, one really can't. Yet, as hard as they tried they could not get President Trichet to concede that the ECB has now entered some form or state of quantitative easing as well as they could not wring an answer as to whether the 1% interest stance would constitute an intermediate floor for the ECB policy rate. Before, however, we get ahead of ourselves let us begin with the beginning.

The almost trivial outcome of today's council meeting in Frankfurt was actually the decision to push the main nominal interest rates down 25 basis points to 1%. If anything, risks to this decision seemed to come from the upside in the sense that all the talk of impending green shoots and second derivatives would make the ECB pause. What was always going to be much more interesting at this meeting would be whether the

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