Dollar, Leading Indicators, Philly Fed

In our top story tonight, Generalissimo Francisco Franco is STILL dead.

Yesterdays dollar rally sparked by comments from French Finance Minister Thierry Breton, who said European officials will do "everything" to prevent the euro from rising further against the dollar, was short lived.

Does this mean, dollar and Euro falling in tandem, while Yuan & Yen rise? That makes our exports cheaper and their imports more expensive.

FYI, the FED meeting is slated for June 28-29, just after our D-day zone of June 11-15 and at the end Captain Numerica's super date zone of June 22-29. See yesterdays Market Observations post for further details.

April Leading economic indicators -0.1%

Inside the number: a revised +0.4% in March, thus ruining a triple decline. In the past six months, the index is up 1.5%, with eight of the 10 indicators showing improvement. Yawn.

May Philly Fed UP to 14.4 vs prior 13.2

Inside the number: New orders index fell almost 10 points, to its lowest reading since last September. Prices paid index soared to 55.3 from 29.0, the highest since October 2005.

Prices received index dropped to 10.3 from 15.4, employment index fell to 1.1 from 21.7. Longer workweeks were also reported.

Future optimism is down: future new orders -13 points, future shipments -22 points, future employment index -17 points, to its lowest reading since August 2002.
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Conclusion: Much like the NY Empire State Index, prices paid up, prices received down showing the effects of overspeculated commodities inputs.

Also, employment levels down & workweeks up in an attempt to squeeze out through labor, every last penny of input price squeezed margin.

The latency of $50-$60 oil has finally arrived, I can't wait for the effect of $70 - $80 oil to get here. Its like a pig going through a python, slow, painful and ugly.

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