In This Issue….

* Euro gets sold on weak data...
* China tries to slowdown again...
* A$'s get slapped on the China slowdown attempt...
* Retail sales & confidence print today...

And Now... Today's Pfennig!


A Special Sunday Update!


Good day... And Happy Valentine's Day! I know that you all are not used to seeing the Pfennig in your email box on a Sunday... But tomorrow is a Holiday, and I've got something I need to talk to you about, that can't wait until Tuesday...

It all centers around the battered and bruised euro... You know that I've long considered the euro as a very good "success story"... And the fact that it had become the offset currency to the dollar in less than 10 short years, was just short of amazing, in my book...

I can remember back in 1998, writing about how I did not think the euro would ever "make it"... I was wrong then, and soon became quite impressed with the resiliency of the euro to withstand the the "doubters' of the single unit.

In 2005, we had the calls for the collapse of the euro, because of the "no" votes to join the euro from Denmark, and Sweden. Then the single unit had to withstand the non-accpetance of the Constitution for the Union. But the euro withstood the hits, and came back stronger...

In August of 2008, the financial meltdown hit the U.S. and then carried over to other parts of the world, and the flight to the dollar as a safe haven, sent the euro's value down to levels it had not seen in a few years. And once again, the calls for a collapse of the euro were heard. But the euro withstood the hits, and came back stronger...

Here we are on Valentine's Day 2010... And once again the calls for a collapse of the euro are being heard. This time because of Greece...

Now, you all have read what I've had to say about this hit to the euro because of Greece... I find it to be unwarranted... But, in a conversation with good friend, David Galland, yesterday, he mentioned something that has me concerned now... When I mentioned to David that Greece was but 2% of the total GDP for the Eurozone. He responded by saying that the Asian Crisis of 1998 was triggered by the debt problems of Thailand, and their debt problems were a smaller percentage of the total Asian GDP than Greece's is now...

WOW! I thought... I think I'm going to have to change horses in the middle of the stream, here... But, I'm torn between these two thoughts: 1. the euro is going to experience major problems and lose a large chunk of value... Or 2. the euro will take its hits, and come back even stronger, just like it has 3 times before...

The point I'm making here folks, is simply that I wanted to get this info to you as I was thinking about it... If you are a euro holder, it's your decision if you take thought number 1 or 2... I just wanted to make you aware of what's going on, and this needed a Pfennig of its own.

And... To say that should you feel that you need to move, think about the ultimate euro alternative, Norway... Or... Like I said last week, with the two largest GDP countries are having problems (eurozone and U.S.) then maybe it's time to go for the Gold!

The thing that may save the euro from taking too big of a hit, are the questions, shadows and clouds surrounding the Treasury's auctions last week... I told you about the demand of 10-year Treasuries was so dampened the yield had to be goosed higher to make it more attractive... Now there are questions about the 30-year auction that I'm looking into right now, and will report to you next week...



Until then... I hope you have a Wonderful Valentine's Day!





Chuck Butler
President
EverBank World Markets
1-800-926-4922
1-314-647-3837
www.everbank.com

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