Political leaders and central bankers will dominate this week's annual Davos forum as a chastened business elite is sidelined in the drive to reboot the world economy, improve global security and slow climate change. (Reuters)
Key Reports Due (WSJ)
* 10:00 a.m. Dec Existing Home Sales: Previous: -8.6%.
* 10:00 a.m. Jan Conference Board Leading Indicators: Previous: -0.4%.
* 10:30 a.m. Jan Dallas Fed Mfg Production Index: Previous: -21.
Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window.
FX Trading - New High in Gold and a GBP Rogers Rally?
All things gold are glittering in light of a deepening global recession/depression as the muckedy-mucks file into Davos to once again enlighten the world and cook up assorted conspiracies for the New Year, and in addition huddle to determine who was responsible for the grand scheme going badly wrong in 2008 (they will likely blame the many leading flames of finance who won't be attending this year for assorted reasons ranging from job loss to jail time). Are we finally seeing the fear move into gold that many have been predicting? Maybe! Gold made fresh new all-time high today!
But gold was over $1,000 an ounce back in March you say...it only just broker $900 today. Well, true that! However, when you examine the price of gold in weaker currencies, such as the euro and pound, the fresh new high is on display...
Is a dollar correction in the cards, or does it tell us something about the potential for gold and the dollar to decouple from their usual negative correlation and move higher together as they have of late?
Gold vs. US$ Index 240-min:
Or maybe a Jimmy Rogers rally is in the making?
As you likely know, Jimmy Rogers made yet another big call. He told everyone to sell all things UK. Bold he is since the pound is only down from 2.11 against the dollar to 1.3800-level when he uttered his latest very public pronouncement. Given our view of the man who never met a microphone he didn't like, it makes us very nervous now residing in the same camp. Given the nature of Mr. Market's ability to punish extremism and one-way-bets, it would be fitting to see some type of rally in Cable at least over the near term: