Stocks are down 200 points as of lunch time in NY, carry trades have weakened significantly as well. So far, the biggest percentage decline has been seen in AUD/JPY which dropped 4.75 percent.
Although volatilities have increased, LIBOR rates and the TED spread continue to fall, indicating that lending conditions are improving. [...]

Posted in Fed Rate Cut, Federal Reserve, Forex News, TED Spread, US Dollar, US Economy, VIX No Comments »

It is now confirmed that the US housing and labor market is in serious trouble. New home sales broke below the 500k make or break mark for the first time in 17 years. The last time we saw new home sales at these levels was during Bush Senior’s Administration. Jobless claims also [...]

Posted in Bloomberg, Forex, Forex News, Forex Podcast, LIBOR, TED Spread, forex blog, paulson dollar 3 Comments »