Institutional investors have talked a lot about the so-called “yen carry trade” over the past couple of years. But that’s really just been a warm-up act for a much bigger story. I’m talking about the “yuan carry trade.”

Currencies continue to rally…  More Stimulus…  Data shows more rot on the vine… And Now… Today’s Pfennig!

Paulson says no to automakers…  Currencies trade in a tight range…  Richard Russell on a Wednesday!  TIC Flows improve… And Now… Today’s Pfennig!

The China good feeling dissipates…  Currencies lose their edge…  Fannie Mae needs more!  Silver manipulation? And Now… Today’s Pfennig!

I want change too!  Euro leads a currency rally!  Factory Orders plunge!  Carry Trades back on the table! And Now… Today’s Pfennig!

The winner is… Deflation!  Trading theme in place…  RBA cuts rates 75 BPS!  Manufacturing collapses! And Now… Today’s Pfennig!

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

Credit fears ease…  Chuck’s thoughts from the road… India cuts rates… China growth slows, but is still 9%…
And Now… Today’s Pfennig!

Good day…And what a day it was! As I stated in yesterday’s Pfennig, Columbus day is just sort of a holiday for the markets. These ’semi-holidays’ can create some volatile trading, as not all of the markets are open and many desks are short staffed. So with the Federal Reserve and the banking system closed, the equity markets had the largest one day gain in over seven decades.

Bernanke gets help opening the spigot… Euro and Pound rally… Yen to continue to benefit from carry reversals… Aussie $ rallies… And Now… Today’s Pfennig!