Weaker data doesn't bring about a weaker Dollar?

• Currencies and metals get sold on Tuesday.

• Wait till you see awaits you in the FWIW today!

Good Day... And a Wonder Dog Wednesday to you! My beloved hit 3 homers again last night, and like the night before, they lost the game... All those previous losses when we received great starting pitching, and no hitting, now we get hitting and no pitching! UGH! Baseball will definitely drive you crazy at times, folks... So, If I sound a little off my rocker today, you'll know why! Golden Earring greet me this morning with their hit song: Radar Love...

Well, it was another day of one day up, the next day down, with yesterday being the down's day for the metals... Gold lost $23, and Silver gained 4-cents... Copper lost 3-cents... So, Gold was the whipping boy for the short paper traders yesterday...  

The dollar gained 2 index points on the day, and ended the day at 1,252... I would have thought, that since last week when the economic data was bad for the dollar, the dollar got sold, that this week would bring more of that kind of trading, but noooooooooo! The ISM (manufacturing Index) dropped in April to 48.7 from 49.2... That's going the wrong way folks... And just a friendly neighborhood reminder that any number below 50 means the manufacturing sector is in Contraction...  

But the dollar bugs saw to it that it didn't mean a hill of beans to them, and the dollar gained ground on the day... The euro remained well bid above 1.08, and the rest of the currencies, that are not Petrol Currencies, all seemed to hold on to their pants... With the price of Oil remaining in the $73 handle yesterday, the Petrol Currencies were able to catch their collective breaths... 

The 10-year's yield dropped 7 more basis points yesterday, and ended the day trading with a 4.34% yield... Longtime traders know that I was once a foreign bond trader, and for years, I was around U.S. Treasury Bond traders, and I thought I had a good handle on what they used to move the yields on bonds... And that they were always looking ahead... But today's U.S. Treasury Bond dealers are not their father's dealers... I'm just saying... For if they were they would be looking ahead at all the maturities that are coming due in the near future, and all the new debt that will have to be added to new bonds to replace the maturing ones...

And, asking themselves, "who is going to buy all that debt?" 

Just for those of you keeping score at home... I read the other day that China had sold a record amount of Treasury and US agency bonds in the first quarter... how does $53.2 Billion sound? I don't think we as a nation can depend on the kindness of foreigners any longer... We've ticked off, sanctioned some, and made them choke down trillions of debt already, and they are saying now... no mas! 

In the overnight markets last night... There was little to no movement in the dollar overnight with the BBDXY gaining just ½ index point. Yen, after enjoying a day or two of sunshine is back to getting sold this morning, and the rest of the currencies, sans Petrol Currencies, all look a bit healthier this morning... The Price of Oil remained in the $73 handle overnight, and have given up the ghost on price increases here... The Summer driving season is upon us, so there should be some upward movement, but we'll have to wait-n-see....  I did, for once in a blue moon, filled up my gas tank yesterday, while prices were lower... I was really proud of myself for that move... 

Gold is up $6 to start our day today, and Silver is up just 3-cents to start the day. The short paper traders probably slept in today, something I kind of wish I could've done! I told you yesterday my outlook for the metals, so we don't have to rehash that... The metal that was going great guns a couple of weeks ago, and now isn't any longer, Copper, was introduced to price management, from the short paper traders, and their relationship has been all one-sided... UGH! 

The 10-year's yield fell a couple more basis points overnight, and trades this morning with a 4.32%... The weak data that's been printing sure has caused the rate cut bugs to come out from the wall boards, and scatter around the kitchen... But like I've pointed out, if the data is so weak that the bond boys smell a rate cut coming, then why is the dollar not getting weaker? Something's got to give here, folks... 

Well, I was actually out of it for most of yesterday, the new chemo that I'm taking knocked me on my arse... I slept most of the day... And was able to go right back to sleep last night after the ball game... I feel somewhat OK, this morning... After I get my coffee, I think I'll be good to go today... I told you that to let you know, I didn't make notes yesterday during the day of what I wanted to talk about this morning, so... This could very well be a shot-n-sweet Pfennig today... 

I found this last night... and after you read this, knowing what you know about the manufacturing sector and adding an eye of newt, no wait, we're not making a witch's brew here, simply add this info and then you can point to them the next time you hear A Gov't Official tell you how strong the U.S. economy is: "The long list of restaurant chains closing locations due to financial reasons keeps growing. Now, joining the likes of Red Lobster, Pizza Hut, Boston Market, TGI Fridays, Popeyes, Tijuana Flats, Cracker Barrel and Applebee's in shuttering locations, is national burger chain BurgerFi, and also like some other companies, they might also be filing for bankruptcy soon."

And before I go to the big Finish today, I wanted to share this with you... Fed president Neel Kashkari says that Americans have such a ‘visceral’ hatred of inflation that they’d rather have a recession than rising prices." that can be found on Fortune.com  

Chuck again: Well, yes, as long as you decrease deficit spending along with the recession, then you'd have something... A cleaning out of the excesses, and a starting over for the economy... I'll take that to go, sir! 

Today's U.S. data Cupboard has April Factory Orders for our review... I suspect that they will be disappointing at best... We'll also see the Jobs Openings for April, which will remain above 8 Million... Hiring seems to be stuck at 2016 levels... Nobody wants to work any longer I guess...

To recap... The dollar bugs bought up dollars yesterday, and the BBDXY gained 2 index points, but the euro remained well bid above 1.08, and the only currencies showing some weakness are the Petrol Currencies, and that's because the price of Oil has fallen out of bed! Chuck talks about his days as a bond trader... And gives us proof that the U.S. economy is teetering... 

For What It's Worth... Well, I hate to do this, but not really, because this is something that everyone should know... This is a very short video of the head of the U.S. Chief economic advisor... 

See? Doesn't that just give you a nice warm and fuzzy about the people running our economics? NOT! He can't even explain how the deficit spending gets financed... And he's the Chief of the economic council? GIVE ME A BREAK! SERENITY NOW! I'm going to go yell at the walls for a minute to see if that calms me down, be right back.... 

Market Prices 6/5/2024: American Style: A$ .6646, kiwi .6183, C$ .7311, euro 1.0870, sterling 1.2780, Swiss $1.1204, European Style: rand 18.0364, krone 10.5635, SEK 10.4251, forint 360.35, zloty 3.9612, koruna 22.6842, RUB 88.60, yen 156.14, sing 1.3483, HKD 7.8094, INR 83.37, China 7.2474, peso 17.65, BRL 5.2720, BBDXY 1,250.83, Dollar Index 104.31, Oil $73.64, 10-year 4.32%, Silver $29.57, Platinum $996.00, Palladium $953.00, Copper $4.53, and Gold... $2,333.73.

That's it for today... Sorry for the shortness of the letter today, but when you don't do your homework, it's difficult to pass the test! Man oh man, my bumbling, fumbling, stumbling beloved Cardinals... They are not ready for prime time, for sure! Their days of beating up the teams in their division, and then winning the division, are over, for they no longer play the other teams in their division 18 times per team a year!  Well, now I just have to remain not sick, for the next 12 days... Well, actually I would prefer not being sick ever again! Eric Clapton takes us to the finish line today with his song: Let It Rain... I hope you have a Wonder dog Wednesday today, and please Be Good To Yourself!