Daily FX Commentary
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Daily FX Commentary
Fri, Nov 14 2008, 12:54 GMT
Investica Ltd
Dollar doubts set to grow.
Initial US jobless claims rose to 516,000 in the latest week from a revised 484,000 the previous week and this was the highest figure since 2001. Continuing claims also increased further and reached the highest level for over 25 years. The rise in initial and continuing claims suggest both an increase in layoffs and continuing difficulties in finding new jobs.
The trade deficit narrowed to US$56.5bn for September from US$59.1bn the previous month. There was a decline in exports and imports for the month which will reinforce unease over economic trends. The monthly budget deficit for October was also a record US$237.2bn as spending rose sharply while revenue declined 7.5% over the year. Overall confidence in US assets is liable to deteriorate, especially with major stresses in the consumer sector and intense pressure in the auto sector.
Wall Street weakened in initial trading, but then found some strong buying support and this helped trigger a further recovery for the Euro with a peak above 1.28. The G20 meetings will be watched very closely over the next 36 hours and the Euro retreated back towards 1.27 on Friday as caution over the global economy prevailed.
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Fri, Nov 14 2008, 12:55 GMT
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Investica Ltd
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