IFO Sends Euros Soaring Higher
May 21st, 2008 | By Chuck Butler | Category: US Dollar & Forex TradingI’m wondering when bond yields are going to rise… We’ve seen a basis point here and there, but nothing to write home about. When will the bond market finally see the inflation that’s ripping us apart? Obviously, when bond yields do rise, it won’t help the homeowners with ARMS coming due, or the ones that want to flip to a 30-year loan.
I used to be a “bond guy”, trading short-term treasuries, and commercial paper back in the early ‘80 s when it was easy to put 18% yields in customer accounts. Then I moved to be a Foreign Bond Trader… But in recent years, I’ve lost touch with bonds… I mean, the yields were so low, who wouldn’t lose touch with them?
But I noticed on the yield curve sheet that our Foreign Bond Trader, John Kaupisch, puts out weekly, that yields in Australia can be locked in above 6%! WOW! OK, there’s a ton of disclaimers that need to go in if I talk any more about this, so I won’t… Except to say that foreign bonds are sold in our affiliate Brokerage, EverTrade Brokerage. Should you want to inquire more, just call 1-800-926-4922 and ask for John Kaupisch!
Well… Oil is over $130 today… The Dow was down 200 points yesterday… Gold was up $15 yesterday… And the euro gained a full cent. Do you feel the need to diversify your dollar denominated investment portfolio yet?
Currencies today 5/21/08: A$ .9645, kiwi .7805, C$ 1.0170, euro 1.5760, sterling 1.9660, Swiss .9705, ISK 73.43, rand 7.6575, krone 4.9775, SEK 5.9015, forint 154.25, zloty 2.15, koruna 15.9150, yen 103.30, baht 31.80, sing 1.3590, HKD 7.80, INR 42.82, China 6.9590, pesos 10.38, BRL 1.6480, dollar index 72.05, Oil $130.30, Silver $17.76, and Gold… $926.03
That’s it for today… Did you see that the Boston Red Sox pitcher, Jon Lester, pitched a no-hitter Monday night? John Lester is a cancer survivor… That means a lot to me. Tough day for yours truly yesterday…Llet’s hope today is better. We’re creeping up on Memorial Day weekend, which means that Friday will be void of volume, as the “boys” leave early to head to the Hamptons. Memorial Day is a good time to stop and look at what’s happened so far in 2008. It’s also a good time to get out the grill and get outside! Finally, we’ve turned the corner on weather here in St. Louis… Crazy weather year so far for sure! Time to hit the send button… I sure hope you have a Wonderful Wednesday!
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Source: IFO Sends Euros Soaring Higher
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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.
