Bonds and Stocks
Are Stock Markets Irrationally Apprehensive?
March 6, 2009
The DJIA avoided re-crossing Greenspan’s irrational exuberance flash-point of 6437 today, but it seems only a matter of short time before that happens. Many would argue that investors are as irrational now as then, but consider this. From August 12, 1982, the start of a bull mark when the DJIA was at 777, to 6437 […] More
Foreign Exchange Insights and Next Week
Next Week
March 6, 2009
The U.S. data calendar is lighter than the global calendar next week. Central bank interest rate policy meetings are scheduled in New Zealand, Brazil, Switzerland, Korea, and Chile. All are likely to cut rates, but the reductions in Switzerland and Korea will be no more than 25 basis from already low levels. It will be […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: March 6th
March 6, 2009
The dollar experienced another good week until the labor data-inspired blow-off on Friday. New 2009 highs were set against the euro, yen, Canadian dollar, and kiwi earlier in the week. The back-drop remains the same, namely very intense recessions just about everywhere and plunging equities and real estate in a climate of extreme risk aversion. […] More
Central Bank Watch
Peruvian Central Bank Rate Cut 25 Basis Points
March 6, 2009
The Central Reserve Bank of Peru reduced its key rate to 6.0% from 6.25% and issued a statement that points to more relief in the future. Yesterday’s cut followed a similar-sized reduction in February. Inflation has fallen to a 12-month rate of 5.5%. Copyright 2009 Larry Greenberg. More
Currency Markets in the News
Some Reflections on U.S. Job Losses And Unemployment
March 6, 2009
In the five reported months to February since the engineered bankruptcy of Lehman Brothers, the U.S. economy shed 2.964 million jobs, and the unemployment rate climbed 1.9 percentage points to 8.1%. The monthly pace of job destruction was 662K in December-February, the greatest three-month drop since the 1930’s. The six-month erosion rate of employment was […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Waiting for U.S. Employment Figures
March 6, 2009
The dollar has relinquished ground, dropping most sharply against the Swiss franc (1.3%) and yen (1.2%) but also by 0.9% against the euro, 0.7% against sterling, 0.6% versus the kiwi, 0.4% against the Canadian dollar, and 0.1% relative to the Australian dollar. In Japan, the Nikkei fell another 3.5%, and the Topix closed at a […] More
