Carry Trade Depth…  RBA intervenes…  Oil weighs on the loonie… And Now… Today’s Pfennig!

Canada, the U.S. and Mexico are destined to be one more major currency block, under the proposed Amero. Russell McDougal in Investor’s Daily Edge says it’s a plan cooked up by elitists. And it’s only one step away from the loss of national sovereignty…

On Tuesday, dollar bulls were hoping the Federal Reserve would take a hawkish stance on inflation and signal that an interest rates hike.

That didn’t happen. Instead, the Fed issued a fairly neutral statement. It said “downside risks to growth remain” - dropping a reference in June’s statement to “diminished” dangers - and price increases are of “significant concern.”

Chris Gaffney in The Daily Reckoning says the statement indicates the Fed realizes it will be forced to leave rates untouched. This leaves Mr. Market is to focus on the European Central Bank. Expect more inflation fighting from Jean-Claude Trichet and his pals…

The Daily Reckoning’s currency expert Chuck Butler says the dollar is being taken to the woodshed. The greenback is losing ground against all major currencies as the credit crisis continues to wreak havoc in the U.S economy. Chuck says disappointing inflation or retail sales data this week will send the dollar to new depths…

Canadian loonie bounces with oil… Aussie dollar dip is temporary… Indian rupee on the ropes… Kiwi dollar looking shaky…

Questioning the Fed’s moves… Euros slow down… Aussie hits 25-year high… Oil hits $135!

The dollar has finally started to make a comeback, creeping up in yesterday’s trade against major currencies.

Meanwhile, a sharp sell off in commodities sent the Canadian dollar tumbling. The greenback climbed to 1.0102 Canadian dollars, up from 99.21 Canadian cents the previous day.