May 23, 2022

Good Day… And a Marvelous Monday to you! I have to apologize up front and center this morning… I had my letter all written, 2 hours of writing, and research, and my stupid computer erased it all! I’m not one to redo things, so I’m going to hit the high points, and leave out all the commentary this morning, so this will be short-n-sweet…  I have to get a new computer, this one has driven me to the edge of crazy! 

OK, the things you need to know this morning are 1. The dollar has gotten sold big time in the last two trading sessions… The BBDXY has given up 15 points in those sessions. The dollar dominance is waning, quickly…  The euro has risen to trade with a 1.06 handle, while the A$ has also risen to trade with a 71-cent handle this morning. But the Big mover of the currencies is the Russian ruble, which is now trading stronger VS the dollar than it was before the Russians started a war. 

South Africa has joined the countries that have hiked rates to combat their respective inflation… The rand is a commodity currency, and therefore to me, that is, this rate hike was warranted. 50 Basis Points were added to their internal rate which is now 4.75%…  While the rate hike was warranted, to me, it sure took some time getting here… but I guess better late than never applies here.. 

Gold is up $14 in the early trading today… On Friday, last week, Gold had climbed intra-day by $26, only to see the sellers dominate the afternoon session and bring Gold back to only a $5 gain… Gold ended the week trading at $1,847.70, while Silver gave back 13-cents on Friday, and ended the week at $21.88…  

In the overnight markets last night, Gold has added $14, and Silver has added 26-cents, so we’re starting the week off on the right foot.

The U.S. Data Cupboard is empty today, and gradually adds data prints as the week progresses, with Friday’s offerings to be the datapalooza!  Tomorrow‘s  Data Cupboard  will have the ISM manufacturing index, which has been inching downward in recent months, although it still remains above the 50 level, at 58. The recent regional reports indicate that the national ISM will drop more in April.

To recap…. The dollar dominance is taking on water… It will be interesting to see if this selling of the dollar, continues… South Africa hiked rates 50 Basis Points, and the Russian ruble is proving that if you have a commodity that other nations not only want, but need, and you price the commodity in your base currency…. The currency will respond favorably…

Market Prices 5/23/2002: American Style: A$ .7113, kiwi .6477,  C$ .7820, euro 1.0665, sterling 1.2582, Swiss 1.0342, European Style, rand 15.7219, krone 9.6073, SEK 9.8296,  forint 359.15,  zloty 4.3314,  koruna 23.0552,  RUB 57.99, yen 127.52, sing 1.3736, HKD 7.8493, INR 77.41, China 6.6468, peso 19.80, BRL 4.8804,  BBDXY 1,232.06, Dollar Index 102.17,  Oil $111.06, 10-year 2.82%, Silver $22.14, Platinum $978.00, Palladium $2,033.00, Copper $4.23, and Gold $1,861.25

That’s it for today… Sorry for the shortness, but it wasn’t user error! Tomorrow I’ll be back to being by myself for the next two weeks… Hello Pizza Man, pizza? I was happy with my doctor visit last week… My A1C was just 5.6…. The doc even removed one of my meds! My left knee is hurting bad again… The last time I asked my son, Alex, the kid with the doctorate in physical therapy about my knee he replied, “it’s just old age”.. I then said “this is what I paid for ?”…. Oh well… Don Henley takes us to the finish line with his song: Not Enough Love In The World… (he’s got that right!) I hope you have a Marveleous Monday and please remember to Be Good To Yourself !

Chuck Butler