Currency Volatility!  Trading Theme creeps back!  ADP indicates a bad Jobs Jamboree…  Putting on my thinking cap…  And Now… Today’s Pfennig!

In the currency market, the dollar moved higher again vs. the euro. Late Monday, the euro was trading at $1.2641 vs. $1.2751 on Friday. “There is still strong underlying demand for the U.S. dollar,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

SO the SPOT GOLD PRICE sank in October, dropping right back to 13-month lows at $683 an ounce. After failing to breach $930, this collapse marked the third step lower from March’s all-time high of $1,032. And from a technical perspective, the Gold Chart looks horrible – recording lower lows and lower highs for the last six months and more.

There are only a few global-minded investors I really listen to when it comes to gaining insight on the markets. Most of today’s money managers are too mainstream and remain obsessed with beating their benchmarks. What a waste of time. My favorite market seers in Europe include Marc Faber and Felix Zulauf.

The U.S. Federal Reserve is likely to cut rates tomorrow (Wednesday), possibly in conjunction with central bank counterparts in Europe, as fears of a global recession have intensified. However, the Fed has little room to maneuver as its benchmark Federal Funds rate is already at 2% and analysts remain skeptical that reducing it any further keep the United States from sliding into a prolonged recession.

The markets are going to forgive the U.S. of its debt position and imbalances. They will forgive the U.S. of the financial institution meltdown that all began with sub prime mortgages. They will forgive the U.S. of having rising unemployment, and an economy that will be proven to be in a recession. And I’m not even going to go into the future debts the U.S. will have to take on with all the baby boomers hitting retirement.

The tiny London-listed share that’s on the brink of doubling in post-war Georgia. There’s a popular misconception that the Chinese word for “crisis” means “danger and “opportunity”.

“You will lose more in purchasing power (as central bank monetary inflation destroys the currency by printing enough to finance the higher stock prices) than you will ever net in gains…”

Eurozone inflation measured 3.7% year-on-year in May, the highest rate for 16 years, reports Bloomberg. This increases the likelihood of an interest rate hike by the ECB in July, putting more downward pressure on the US dollar.

Money Morning’s William Patalon III discusses how rising inflation is dominating the news on both sides of the Atlantic:

Undoubtedly, a universal theme is emerging at the Fed and other world central banks: Inflation, Inflation, Inflation.

After voting to hold rates steady at its monthly meeting today (Thursday), European Central Bank (ECB) President Jean-Claude Trichet said a rate hike in July is “possible.”