Chuck Butler Currency Round-Up
Jun 24th, 2008 | By Chuck Butler | Category: US Dollar & Forex TradingAussie dollar pumping iron… Icelandic krona dumps… Brazilian real top of the class… China puts brakes on renminbi…
The Aussie dollar is back on the rally tracks this morning after it was announced that Rio Tinto (RTP) is reported to have agreed average iron ore price increases of 80% with China’s largest steel maker Baosteel group. That puts iron ore at a record price, and the Chinese have agreed to pay it! That just brings more revenue to the Aussie Treasure Chest, which helps narrow the Trade Deficit and so on… As I keep saying, I like Aussie to outperform kiwi, because of the astronomical Trade Deficit in New Zealand VS the narrowing Trade Deficit in Australia, and this story plays well with that thought!
There was a currency that got routed yesterday… The Icelandic krona… The Banking Crisis going on there came to a head and the currency just got taken to the woodshed. It’s so bad that the Icelandic Prime Minister thought he had better come to the aid of the currency, saying that the currency, “is likely to stabilize at a stronger level”… The PM also said that Icelandic banks are “more healthy than they appear”…
I hate to say this, but that sounds to me like a General Manager in Baseball giving his manager a “vote of confidence”, only to fire him a week later… I sure hope I’m wrong here, Iceland deservers better… Unfortunately, things just got too heated for such a small country to bear.
Yesterday, I was doing some research for something I’m writing, and I noticed that the top ten currencies year-to-date are all my list of currencies to look to except two #7 Taiwan dollars and #9 Mexican pesos… But for those of you keeping score at home, the list goes like this: 1. Brazilian real, 2. Aussie dollar, 3. Swiss franc, 4. Swedish krona, 5. euro, 6. Danish krone, 7. Taiwan dollars, 8. Norwegian krone, 9. Mexican pesos, 10. Singapore dollar and just for fun, 11. Japanese yen
The Brazilian real is the winner by far though, racking up a better than 10% gain VS the dollar so far this year…
The Chinese renminbi put the brakes on last night… After a week of strong moves VS the dollar, the renminbi applied the brakes as it appears China might be trying to deter speculators from making what they believe to be “one-way” bets on the renminbi. The problem here is that the Chinese won’t follow that one day “hard stance” with about a week of the same… I’m not saying that the Chinese “don’t get it” what I’m saying is that I don’t believe they really truly want to deter speculators…
Source: Dollar’s Mini-rally ends…
Advertisement
But shouldn't a high-yielding checking account be a must-have too? At EverBank®, we believe that your money should earn a great rate—including the money in your checking account.
That's why we created our FreeNet© Checking Account. You'll earn a high yield—at opening and as long as you have your account. Plus, you'll be entitled to all of the extras a FreeNet account offers. Optional Online Bill Pay. Free online account management—view your EverBank and non-EverBank accounts. Unlimited check writing—and so much more.
Come to EverBank and experience the difference. You'll be amazed by how quickly our FreeNet account becomes a must-have for you.Visit us
Chuck Butler, is the author of The Daily Pfennig, which is republished at The Daily Reckoning. His respected analysis is frequently quoted in or referenced by: the Wall Street Journal, U.S. News and World Report, CBS Market Watch, USA Today, CNNfn, the Chicago Tribune and many other publications.
