The markets were full of contradictions last week. Take for example the turmoil in the Middle East. In past crises, investors flocked to the U.S. dollar. But not this time. The U.S. dollar futures contract fell to 76.41 last week.

Another contradiction: the U.S. jobs report was the best in two years, with 192,000 new jobs added. The stock market should have rallied strongly. Instead the Dow fell 88 points. The crises in Libya and elsewhere overshadowed the favorable jobs picture.

Continue reading Euro Trades Above $1.40 on Expectation of Higher Rates

Euro Trades Above $1.40 on Expectation of Higher Rates originally appeared on BloggingStocks on Mon, 07 Mar 2011 07:00:00 EST. Please see our terms for use of feeds.

The U.S. dollar is coming under increasing pressure on several fronts. First and foremost is oil. Oil closed at $102 per barrel Wednesday for the first time in over two years. Oil has been driven upwards by the turmoil in the Middle East. The Libyan situation is getting worse with both sides vowing to fight on. There is unrest throughout the Arab region. The great fear for the West is that oil flows may be disrupted. The U.S. dollar usually moves inversely to oil. Today the March futures closed at 76.689, down .394

Continue reading U.S. Dollar Is Getting Hammered

U.S. Dollar Is Getting Hammered originally appeared on BloggingStocks on Thu, 03 Mar 2011 09:20:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Stock Futures Slightly Down as Investors Await Earnings Reports

U.S. Stock Futures Slightly Down as Investors Await Earnings Reports originally appeared on BloggingStocks on Wed, 19 Jan 2011 08:00:00 EST. Please see our terms for use of feeds.

The beleaguered U.S. dollar, which has weakened about 50% versus the euro and about 11% versus the British pound since 2002, is down but hardly out.

The dollar has rallied in the past two months versus the euro (up 8%) and pound (up about 4%), on renewed concern about sovereign debt in Europe. This time, the concern is about Portugal's debt, and the impact continued credit market woes would have on both euro-zone and United Kingdom GDP growth.

On Tuesday, Portugal's Prime Minister Jose Socrates said his country will not need a bail-out, and its budget deficit will be lower than forecast, Bloomberg News reported. He said rumors that the country needs aid are helping "speculators" while hurting Portugal and driving down the euro.

Continue reading Europe Debt Concerns Continue to Weigh on Euro, Support Dollar

Europe Debt Concerns Continue to Weigh on Euro, Support Dollar originally appeared on BloggingStocks on Tue, 11 Jan 2011 15:30:00 EST. Please see our terms for use of feeds.

The U.S. dollar staged dramatic back-to-back rallies on Wednesday and Thursday of this week. As the outlook for the U.S. economy continues to improve, money is flowing back into the dollar. A rising dollar has generally been bearish for stocks and commodities, so traders with significant exposure to risk assets may want to lighten up and take profits.

One place to consider putting some cash in the near-term is the PowerShares DB US Dollar Index Bullish ETF (UUP), which tracks the performance of the greenback versus a basket of foreign currencies. As has been the case with most of the pullbacks that have occurred in 2010, the likely next downside catalyst for global risk assets is another re-flaring of the sovereign debt crisis in Europe.

Continue reading Near-Term Outlook for U.S. Dollar Is Bullish

Near-Term Outlook for U.S. Dollar Is Bullish originally appeared on BloggingStocks on Fri, 07 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Stock Futures Up as Investors Await Economic Data

U.S. Stock Futures Up as Investors Await Economic Data originally appeared on BloggingStocks on Tue, 04 Jan 2011 08:30:00 EST. Please see our terms for use of feeds.

Three intermarket commodities are on the move today. The Financial Times reported that the U.S. dollar hit a low against the Swiss franc.

Why is this noteworthy? First the Swiss franc is a separate currency, not part of the euro. With Europe in disarray, the only safe currency is the Swiss franc. Anyone wanting to hedge against the eurozone getting worse would buy the Swiss franc. On the futures market, the March Swiss is trading at 1.05610, up 0.0138 (9:20 EDT). The March U.S. dollar is trading at 80.18, down 0.49.

Continue reading Dollar Hits Low Against the Swiss Franc

Dollar Hits Low Against the Swiss Franc originally appeared on BloggingStocks on Tue, 28 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Stock Futures Lower as Investors Await Leading Indicators Data

U.S. Stock Futures Lower as Investors Await Leading Indicators Data originally appeared on BloggingStocks on Fri, 17 Dec 2010 08:30:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Stock Futures Up as Investors Await Economic Data

U.S. Stock Futures Up as Investors Await Economic Data originally appeared on BloggingStocks on Fri, 10 Dec 2010 08:30:00 EST. Please see our terms for use of feeds.

The eurozone debt crisis is spreading across Europe. The latest Irish bailout is not quelling the fear factor. Now, all eyes are turned to Spain, Portugal and Italy.

What has happened is that banking systems are freezing up, the Financial Times explains. One Spanish banker told the paper, "The bond and credit markets are completely closed."

Continue reading Euro Falls as the Eurozone Debt Crisis Worsens

Euro Falls as the Eurozone Debt Crisis Worsens originally appeared on BloggingStocks on Wed, 01 Dec 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Futures Trading Lower Ahead of Economic Data

U.S. Futures Trading Lower Ahead of Economic Data originally appeared on BloggingStocks on Tue, 30 Nov 2010 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Is Spain the Next Debt Domino?

Is Spain the Next Debt Domino? originally appeared on BloggingStocks on Mon, 29 Nov 2010 16:00:00 EST. Please see our terms for use of feeds.

Euro Currency Trust (FXE) closed down 0.6% to 131.93 , near its 100-day moving average of 132.47. Overall option implied volatility of 13 is near its 26-week month average according to Track Data, suggesting non-directional price movement.

CurrencyShares Japanese Yen Trust (FXY) closed down 0.62% to $117.68. The FXY reflects the price of Japanese Yen plus accrued interest. FXY over all option implied volatility of 11 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Euro Currency Trust Volatility Flat originally appeared on BloggingStocks on Fri, 26 Nov 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading German Chancellor Merkel's Comment Triggers Euro Sell Off

German Chancellor Merkel's Comment Triggers Euro Sell Off originally appeared on BloggingStocks on Tue, 23 Nov 2010 16:00:00 EST. Please see our terms for use of feeds.

The recent sell-off in risk assets can be largely attributed to the strength in the U.S. dollar. While on a longer term basis the general decline in the greenback may make fundamental sense, on a near term basis, the currency looks to be oversold and could continue to rally for weeks or months. This is particularly true when considering the precarious nature of the European sovereign debt situation.

It was not that long ago that many observers and investors were calling for the euro to hit parity with the greenback. The recent Irish problems suggest that this kind of talk may get started once again and a substantial decline in the euro seems like a possibility. This is a bullish indication for the dollar.

Continue reading Risk/Reward in the Dollar Attractive (UUP)

Risk/Reward in the Dollar Attractive (UUP) originally appeared on BloggingStocks on Fri, 19 Nov 2010 10:20:00 EST. Please see our terms for use of feeds.

The eurozone sovereign debt crisis has bubbled to the surface again. This time Ireland is in the cross hairs. Ireland may need aid, primarily to bail out its banks. Ireland says it has enough cash to carry it through next summer, but the key concern is keeping Irish banks afloat during this crisis. So far, Ireland hasn't requested financial aid from the European Union.

This uncertainty has set off a selling spree in the euro. About two weeks ago the euro was trading at $1.42. Since the Irish crisis began the euro dropped to $1.35.

Continue reading Traders and Investors Selling the Euro

Traders and Investors Selling the Euro originally appeared on BloggingStocks on Tue, 16 Nov 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Euro Falls on Irish Debt Worries

Euro Falls on Irish Debt Worries originally appeared on BloggingStocks on Mon, 08 Nov 2010 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Dollar Sharply Lower, Causing a Rush into Commodities and Equities

Dollar Sharply Lower, Causing a Rush into Commodities and Equities originally appeared on BloggingStocks on Thu, 14 Oct 2010 10:30:00 EST. Please see our terms for use of feeds.

In an interview with CNBC, Warren Mosler, principal broker dealer with AVM, lays out his argument for the euro's rise to $1.50.

His main argument is that Europe is creating austerity measures that are curbing inflation and thus strengthening the euro. Notwithstanding the fact that the European Central Bank (ECB) is buying bonds from weaker members like Greece, Ireland, Spain and Portugal, these moves will not create inflation. No longer can speculators attack a single country like Greece and in doing so take down the entire eurozone.

Continue reading Will the Euro Rally to $1.50?

Will the Euro Rally to $1.50? originally appeared on BloggingStocks on Thu, 07 Oct 2010 12:40:00 EST. Please see our terms for use of feeds.

Continue reading Gold Prices Surge to New Record High on Global Economic Concerns

Gold Prices Surge to New Record High on Global Economic Concerns originally appeared on BloggingStocks on Tue, 14 Sep 2010 14:40:00 EST. Please see our terms for use of feeds.