The Swedish Krona Is A Petro-Currency!!!

There has been a lot of commentary about the Canadian dollar being a petro-currency and how oil price is driving the Canadian dollar up thus hurting the Canadian economy (chart $CdnWTI).

Certainly if that was all the data one looked at, one could conclude that this was the case. However, if you plot the Swedish Krona vs. WTI, you would have to draw the same conclusion: the Swedish Krona is also a petro-currency!!! (chart KronaWTI). Someone should mention to the Swedes that all of that oil they are producing is driving up their currency!!!.....

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Are Natural Gas Prices Ahead Of Themselves?

Natural gas prices have rallied strongly since late April. It does appear that most of this is being caused by the ongoing exit of the bears (chart NGJun12OI). The bears are being pressured by.....

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The U.S. Dollar - Where To From Here

The U.S. dollar represents a gauge measuring the markets’ move toward high return/higher risk ($US falling) or risk aversion ($US rising). Longer term, we expect the U.S. dollar to continue its downward trend as the U.S. government issues massive amounts of new debt. However, in the short term, the dollar was rising as risk aversion grew. A major spike in the $US could cause a lot of commodity selling as speculators are leveraged to the long commodities/short $US trades. The dollar index rallied as the risk aversion trade was on and a great deal of uncertainty shrouded the European debt crises of Greece, Ireland, Portugal and others, but should weaken again relative to other unpegged currencies.

The U.S. Dollar Index is a weighted gauge against the Euro, Yen, Pound, and three other currencies.

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