These days we are constantly hearing about currency wars taking place across the globe. Almost every leading country is trying and racing to devalue their currency in order to boost their exports. Just look at the recent action by the Japanese government and the Bank of Japan (Japanese central bank). The Japanese finance minister actually stated they his goal was to get the Nikkei 225 Index up to 13,000 by the end of March. You cannot make this stuff up. Never before has a prominent government figure made such a comment. ...
Hi, I had a few minutes this morning to throw together some charts and make a few comments on what was a momentous week in global financial markets.
This will be extremely abbreviated but I thought it important to give my readers a perspective on these developments because I believe they set in motion a course of events that will lead this market higher into the election.
It's been two weeks since I posted a full commentary and for all the volatility during that time stocks have managed to stay in a trading range. Everyone was getting excited about Friday's rally and questioning whether it was a turning point for stocks. And while I anticipated Friday's rally any follow thru early next week will largely depend on whether the rumors of a massive Chinese liquidity intervention being announced this weekend are true and whether Mr. Bernanke makes some dovish remarks when he testifies before congress on Tuesday.
The Federal Reserve, Gold, the S&P 500, & the Retail Mindset
The recent rally has been breathtaking, however the majority of investors have missed out on a large portion of these gains as significant levels of cash have been either moved to bond funds or taken out of equity markets consistently during this rally. Let’s face it, financial markets around the world are not what they once were.
0K Jobs Created, Unemployment Remains Steady at 9.1%
The U.S economy created no new jobs in the month of August and the unemployment rate was held at the 9.1% mark. The NFP (Non-Farm Payrolls) report is fueling concerns that the U.S maybe heading toward another recession. GBP/USD came very close of breaking the 1.6110 minor support line yesterday and shifting the currency pair bullish momentum, but today’s report put a stop to the downtrend.
U.S Dollar Drops Against the Loonie, Unemployment Claims Higher
The U.S dollar drops against the Canadian Loonie, as the U.S unemployment claims are higher than expected. Unemployment claims came out at 417K, but was forecasted to be at 403K this week. Intraday bias for the USD/CAD remains on the upside, as long as the 0.9600 minor support line is not broken.
Fitch Confirms U.S ‘AAA’ Credit Rating, Dollar Firm Against Yen
The U.S dollar is trading firmly today against the majors, after Fitch confirmed the U.S credit rating at ‘AAA’. Some currency analysts are viewing today’s news as evidence that the U.S dollar is still one of the major ‘safe-haven’ currency to go to during uncertain global economic outlook.