USDINX

As I wrote about two days ago in my daily commentary, the US$ index was showing signs of being in a corrective pullback phase, and one should not expect USD strength to continue. On the next day, the EU, GU, AU and NU all closed higher and continued padding on further gains today.  As discussed in the post, the…

In economic news, the euro data was overwhelmingly negative, which interestingly enough did not propel the euro lower. A slew of French and German PMI data was all under expectations, which hopefully shows that inflation is stable (the region does not need inflation amidst the high unemployment rates), but could be a signal of stagnant growth as well. In the UK, the revised quarterly GDP also came in under expectations of -0.2%, at -0.3%. Again, this is, objectively, more negative news, but…

The Aussie is down sharply in May already, and shows a 3 month bearish pattern, but it is right on top of 100 which is a big psychological level, and the Aussie remains the carry pair of choice for global institutions/investors, meaning big money is always looking to buy dips.  Our best guess is monitor 99.00 for buy-set-ups.  Both the primary and secondary patters are higher. Keep in mind the Aussie is not in the U.S. Dollar Index so a strong dollar does not automatically mean a weak…

I have already referred to the relation between the expansion of U.S. Monetary base and the development of gold price. As the U.S. Monetary base expands, the price of gold tends to rise as well. Can we use this relation to learn more on the future development of gold? 

The following chart presents the development of gold and U.S.…

Chances of QE3 Increasing – $500 Billion in MBS Purchases?

With various dangers lurking to undermine the US recovery – contagion of euro-zone sovereign debt crisis, a persistently high …

I think it didn't surprise anyone that the Super-Committee failed to reach an agreement among its members to cut at least $1.5 trillion from the Federal Budget over the next decade. This failure and the low expectations from this Super-Committee are probably the best representation for the U.S. government's handling the U.S debt. The current partisan gridlock might eventually…

The markets attention, rightfully so, remains on the European summit, as markets gyrate with each new details, headline, and leak in anticipation.

However we did have a potpourri of US fundamental macro release come out today, that while flying under the radar in regards to impact on the market, still gives us a good update on the status of the US economy and may become important as we move further away from the headline driven market we have currently.

The dated today included…