Sep 18, 2018

Europe Wants The Euro To Become The World's Reserve Currency

European Commission President Jean-Claude Juncker just this week said publicly that their plan, their hope is that the Euro becomes a reserve currency that rivals the US dollar because Europe is tired of being depended on the US Dollar. 

In fact, he specifically mentioned the fact that 90 plus percent of European payments for oil are made in dollars he says, "Why is this? Why are we buying oil from Russia and paying in US dollars? It makes no sense!" And so Europe wants to wean itself from dollar dependence.

Sep 17, 2018

Currency Markets: ECB is Hawkish, The Fed Is A Dove

The European Central Bank (ECB) is saying "we're gonna keep inflation under 2 percent no matter what" and so to me they're taking opposite positions: the ECB is tighter and the hawkish bank and the Federal Reserve is a dove and therefore the Euro currency (EUR) on that basis alone is going to be stronger than the US Dollar (USD).

How The Federal Reserve Is Thinking About Inflation Right Now

The Federal Reserve is saying that they're gonna err on letting inflation break out, that they are fine with symmetrical inflation around 2 percent.

Podcast: The Next Economic Hurricane Will Be a Category 5

Podcast: The next economic hurricane will be a category 5

Sep 14, 2018

Ford (F), General Motors (GM) Trading At 52-Week Lows

The auto industry is suffering. I mentioned just a minute ago about how many Americans have to borrow to buy cars and that's one of the reasons that both General Motors (GM) and Ford (F) are again hitting new 52 week lows. 

Ford (F) is trading close to  an eight or nine year low or something like that. But General Motors (GM) is again at a new 52-week low as both of these stocks are venturing further into bear market territory.

Sep 13, 2018

Crude Oil: $80/Barrel By The End Of The Year

Crude oil is getting more expensive again. The chart to me looks very, very strong. I still think we have a shot of 80 dollars a barrel crude before the end of the year and then north of a 80 dollars a barrel next year especially when the US Dollar rolls over. If you think about how strong crude oil prices are today with the US Dollar strong, imagine how much stronger oil prices will be tomorrow when the US Dollar is weak.

Blog Archive