Work Slowdown? ADP Says Job Creation Declining
Private-sector job creation was considerably less than expected in March, indicating that the labor market’s improvements could begin stalling.
A joint report Wednesday from ADP and Moody’s Analytics showed 158,000 new positions, well below economist expectations of 200,000.
The report serves as a precursor to Friday’s nonfarm payrolls report, so the miss could cause economists to lower their projections.
US Mortgage Applications Fell Last Week
MISS: ADP Jobs [...]
U.S. officials quietly are expressing concern that North Korea could use its “space launch vehicle” to explode a high-altitude nuclear device over the United States, creating an electromagnetic pulse that would destroy major portions of the U.S. electrical grid system as well as the nation’s critical infrastructures.
The concern is so great that U.S. officials who watch North Korea closely are continually monitoring the status of the North Korean “space launch vehicle,” whose status [...]
S&P 500 runs triple-dip risk
The stock market hasn’t been this carefree since early 2007. Should we be worried about that?
As the S&P 500 Index moves toward an all-time high and volatility sits at multiyear lows, investors should remember we’ve been here twice before, with the index just below 1,600 both in 2000 and 2007 only for it to take a dive soon after.
So is a third dip on the horizon? [...]
It Looks Like The Dollar Is About To Surge
Good perspective here from SocGen’s currency analyst Sebastien Galy. Between the Italian election uncertainty and the UK downgrade, it’s safe to expect another dollar pop:
The combination of a UK downgrade and a uncertain Italian elections are the fuel for a run of stop losses on long GBPUSD and EURUSD at the opening of the markets in Asia. CFTC positioning had already shown [...]
Dick Bove: US Dollar Will Be ‘Overthrown’ as World’s Reserve Currency
There’s plenty of evidence supporting the belief that the dollar’s days as the preeminent currency are coming to an end, a development that would be catastrophic for the world’s largest economy.
“Generally speaking, it is not believed by the vast majority that the American dollar will be overthrown,” Dick Bove, vice president of equity research at Rafferty Capital Markets, said in [...]
Is the Dollar Dying? Why US Currency Is in Danger
The U.S dollar is shrinking as a percentage of the world’s currency supply, raising concerns that the greenback is about to see its long run as the world’s premier denomination come to an end.
When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies [...]
With Japan, China and the U.S. all pursuing weak-currency policies, other major economies are retaliating. The WSJ’s Deborah Kan speaks to James Rickards of Tangent Capital Partners about whether the drive to devalue will set off a trade crisis.
As developed countries like Japan and the U.S. try to kick-start their sluggish economies with ultralow interest rates and binges of money-printing, they are putting downward pressure on their currencies. The loose [...]
Today’s AM fix was USD 1,660.50, EUR 1,235.12, and GBP 1,057.17 per ounce.
Yesterday’s AM fix was USD 1,656.75, EUR 1,232.43, and GBP 1,052.77 per ounce.
Silver is trading at $31.09/oz, €23.23/oz and £19.84/oz. Platinum is trading at $1,675.50/oz, palladium at $737.00/oz and rhodium at $1,200/oz.
Cross Currency Table – (Bloomberg)
Gold fell $4.00 or 0.24% in New York yesterday and closed at $1,654.90/oz. Silver climbed to $31.30 in Asia before it eased [...]
Prime Minister Shinzo Abe’s fiscal and monetary stimulus measures may trigger a collapse of Japan’s economy as early as this year, according to Takeshi Fujimaki, a former adviser to billionaire investor George Soros.
The yen has slumped 6 percent since elections last month returned power to the Liberal Democratic Party run by Abe, who’s demanded that the Bank of Japan (8301) undertake unlimited cash infusions to end deflation. The premier also unveiled 10.3 trillion yen ($116 [...]
by GoldCore Gold Bullion
Today’s AM fix was USD 1,693.00, EUR 1,295.14, and GBP 1,050.77 per ounce.
Yesterday’s AM fix was USD 1,703.00, EUR 1,300.79, and GBP 1,057.90 per ounce.
Silver is trading at $32.73/oz, €25.15/oz and £20.40/oz. Platinum is trading at $1,586.00/oz, palladium at $680.00/oz and rhodium at $1,045/oz.
Gold fell $3.10 or 0.18% in New York yesterday and closed at $1,693.60/oz. Silver climbed to $33.24 then slid to $32.51, but finished after [...]
December 3, 2012
Under sanctions imposed by the U.S. and its allies, dollars are hard to come by in Iran. The rial fell from 20,160 against the greenback on the street market in August to 36,500 rials to the dollar in October. It’s settled, for now, around 27,000. The central bank’s fixed official rate is 12,260. Yet there’s one currency in Iran that has kept its value and can be [...]
J. Keith Johnson
October 6, 2012
Over the past 40 years, the Federal Reserve has been force-feeding the world the idea that its printing press puts out more valuable paper than anyone else’s. This is, of course, because in 1971 it was given legislative approval to manage the U.S. currency, without any asset restrictions.
At the time the world was already addicted to U.S. dollars as a reserve currency due to the dollar’s [...]
FRANKFURT (MarketWatch) — European Central Bank President Mario Draghi on Thursday said the institution stands ready to do whatever it takes to save the euro, news reports said. “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough,” Draghi said, according to Reuters. The ECB president spoke at an investment conference in London where he was scheduled [...]
While Americans might enjoy throwing politically-charged barbs at their neighbors to the north, Canadians now have at least one reason to be smug.
For the first time in recent history, the average Canadian is richer than the average American, according to a report cited in Toronto’s Globe and Mail.
And not just by a little. Currently, the average Canadian household is more than $40,000 richer than the average American household. The net worth of [...]
Americans may enjoy teasing and taunting their neighbours to the north but now the jokes on them.
For the first time in recent history, the average Canadian is richer than the average American.
The net worth of the average Canadian household in 2011 was $363,202 compared to the average American household’s $319,970 worth, according to data published in Canada’s Globe and Mail last month.
Quids in: For the first time in recent history, the [...]
The euro fell to the lowest level in more than a week against the yen as Spanish and Italian borrowing costs rose amid concern a European Union summit this week will fail to solve the sovereign-debt crisis.
The 17-nation currency slid earlier against the dollar, reaching its lowest level since June 8, after German Chancellor Angela Merkel told German lawmakers she expects no shared debt liability in her lifetime. The greenback weakened against [...]
Ex-Soros Adviser Fujimaki Says Japan May Default by 2017
Investors should buy assets in U.S. dollars and other currencies of strong developed nations because Japan may default within five years, said Takeshi Fujimaki, former adviser to billionaire investor George Soros.
“Japan is likely to default before Europe does, which could be in the next five years,” the president of Fujimaki Japan, an investment advising company in Tokyo, said in an interview [...]
* Argentines reacting to foreign exchange restrictions
* About $100 mln in dollars withdrawn every day
* Rush toward greenback started in November
By Jorge Otaola
BUENOS AIRES, June 8 (Reuters) – Argentine banks have seen a third of their U.S. dollar deposits withdrawn since November as savers chase greenbacks in response to stiffening foreign exchange restrictions, local banking sources said on Friday.
Depositors withdrew a total of about $100 million per day over the [...]
June 7, 2012
Time for dollar, euro to step aside — the redback cometh… Yuan finally set to emerge on a global scale with China hot on heels of US as world’s second largest economy. There are increasing calls for the yuan to become an international payment, investment and reserve currency. The move towards yuan internationalisation requires domestic structural reforms and financial market development. China’s 12th five year plan objectives [...]
Japan and China will start direct currency trading this week, Tokyo said Tuesday, the first time Beijing has let a major unit other than the dollar swap with the yuan.
The move, which will scrap the greenback as an intermediary unit, comes as China introduces measures as part of a long-term goal of internationalizing its currency to rival the dollar.
The Chinese central bank earlier Tuesday introduced a rate of 7.9480 yuan [...]
The dollar is proving scarce, even after the Federal Reserve flooded the financial system with an extra $2.3 trillion, as the amount of the highest-quality assets available worldwide shrinks.
From last year’s low on July 27, the greenback has risen against all 16 of its major peers. Intercontinental Exchange Inc.’s Dollar Index surged 12 percent, higher now than when the Fed began creating dollars to buy bonds under its extraordinary stimulus measures [...]
In recent articles, I have outlined the very immediate dangers of several potential economic events that are likely to take place this year, including the exit of peripheral countries from the European Union, the conflict between austerity and socialist spending in France and Germany, the developing bilateral trade agreements between China and numerous other countries which cut out their reliance on the U.S. dollar, and the likelihood that the [...]
By: Doris C. Dumlao, Michelle V. Remo
Philippine Daily Inquirer
It may only be a matter of time before the US dollar gets replaced as the main currency in international trade, according to economists attending the meeting of the board of governors of the Asian Development Bank.
For many years, the dollar “has been almost the sole ‘reserve’ currency,” banked on by the world economy, American economist Jeffrey Sachs said Thursday in one of the forums held [...]
by The Economic Collapse
Most people think of a cashless society as something that is way off in the distant future. Unfortunately, that is simply not the case. The truth is that a cashless society is much closer than most people would ever dare to imagine. To a large degree, the transition to a cashless society is being done voluntarily. Today, only 7 percent of all transactions in the United States are done with [...]
Today, without much fanfare, US debt to GDP hit 101% with the latest issuance of $32 billion in 2 Year Bonds. If the moment when this ratio went from double to triple digits is still fresh in readers minds, is because it is: total debt hit and surpassed the most recently revised Q4 GDP on January 30, or just three weeks ago. Said otherwise, it has taken the US 21 [...]
China and UAE ditch US Dollar, will use Yuan for oil trade 24 Jan 2012
NEW YORK (Commodity Online): The US dollar is fast losing out its reserve currency status with China aggressively replacing the dollar with the Yuan as a currency for bi-lateral trade. The latest is an agreement signed between the China and the United Arab Emirates (UAE), which will use the Yuan for oil trade.
The deal is worth around [...]
From All Star Charts:
We always hear it, “Today was a Risk-On day” or “Today was Risk-Off.” Over the last few years, it feels like either everything is up or everything is down. If Risk is “On,” stocks and commodities are usually up and Treasurys and the U.S. dollar are typically down. If the Risk trade is “Off,” stocks and commodities are probably getting sold and money is flowing into the [...]