Signs of stability in the US manufacturing sector has failed to turn around the market’s risk appetite. Although the US dollar has weakened marginally against all of the major currencies, if US stocks continue to sell off, we could see the dollar regain strength.
Will the US government allow GM to fail?
The [...]
Entries Categorized as 'US Dollar'
Dollar Hangs Tight on GM Risk, Recession Trades Still On
November 17, 2008
Is the Currency and Equity Rally a Mirage?
November 13, 2008
In every major bear market, there are relief rallies and that is what we have seen today. The Dow Jones Industrial Average dropped more than 300 points during the US trading session before reversing violently to end the day up more than 550 points. The major turnaround in equities has forced the US [...]
Jobless Claims Highlight Seismic Challenges Facing US Economy
November 13, 2008
When the labor market is in trouble, the US economy is in trouble. Jobless claims rose 516k last week to the highest level since September 2001. The claims for unemployment benefits was only surpassed in the 2.5 weeks following 9/11.
Extrapolating the jobless claims data to non-farm payrolls and we could see non-farm [...]
Is the UK Becoming the Next Japan?
November 12, 2008
When the Bank of England cut interest rates by 150bp last week, I turned aggressively bullish EUR/GBP on the belief that interest rates are headed below 2%. The currency pair has now hit a record high as the market realizes that not only will UK interest rates fall below 2%, but could be headed [...]
What Matters More? The Good or the Bad
November 11, 2008
Every day, equities, currency and bond traders weigh the good news with the bad to determine if they want to buy or sell.
Today, there were just as many positive reports that should have helped to stabilize the markets but has instead failed to stem the bleeding in equities and currencies.
In a [...]
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