Dollar Rises
Jul 1st, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar was higher against the euro. Late Tuesday, the euro was trading at $1.4032 vs. $1.4078 on Monday.
The dollar posted its modest gain on not much, as the data of the day was decidedly mixed.
First, the Case-Shiller home price index in 20 selected cities fell 0.6% in April. But that was taken as a positive by the it-coulda-been-worse crowd, since it compared favorably with compared with the 2.2% decline in March.
David Blitzer, chairman of the index committee, turned the upbeat knob, saying that, “Thirteen of the 20 metro areas also saw improvement in their annual return compared to that of March. Furthermore, every metro area, except for Charlotte, recorded an improvement in monthly returns … While one month’s data cannot determine if a turnaround has begun; it seems that some stabilization may be appearing in some of the regions.”
Next, manufacturing activity improved in the Chicago region in June, with the Chicago purchasing managers index rising to 39.9% in June from 34.9% in May. Of course, readings below 50% still indicate overall business contraction.
Finally, the Conference Board said that its consumer confidence index abruptly reversed course, falling to 49.3 in June from a slightly downwardly revised 54.8 in May. Economists had been looking for a bump up to 55.5.
“The decline in the present situation index, caused by a less favorable assessment of business conditions and employment, continues to imply that economic conditions, while not as weak as earlier this year, are nonetheless weak,” said Lynn Franco, director of the Board’s Consumer Research Center.
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.