Dollar sinks as US jobs data signals more Fed stimulus

ChannelNewsAsia ^ | 10/23/2013 | AFP

[TexGrill]

The US dollar sank against the euro Tuesday after fresh data on the jobs market pointed to the Federal Reserve not cutting back its stimulus before 2014. WASHINGTON: The US dollar sank against the euro Tuesday after fresh data on the jobs market pointed to the Federal Reserve not cutting back its stimulus before 2014.

The prospect of the Fed's easy money program staying unchanged, after months of expectations of tightening, pushed the euro to its highest level on the greenback since November 2011.

At 2100 GMT, the euro bought US$1.3780, compared to US$1.3681 late Monday.

The September data showed a slow pace of hiring by the private sector in the weeks before the October 1 partial government shutdown.

Coupled with what is expected to be even poorer numbers for October due to the 16-day closure, the data led analysts to conclude that the Fed would put off the "taper" of its US$85 billion a month bond buying program until early next year, judging the economy still needs such support.

Treasury bond yields fell sharply to their lowest level in three months, the 10-year bond falling to 2.51 per cent after touching 3.0 per cent in July.

[TexGrill]

Global business tip

[sickoflibs]

Who says we will run out of $$$ ?

[pieceofthepuzzle]

“Who says we will run out of $$$ ?”

Well, it’s not we’re going to run out of money. It’s just that it won’t be worth anything.

[GeronL]

exactly

[sickoflibs]

RE :Well, it’s not we’re going to run out of money. It’s just that it won’t be worth anything.”

Not even in Greece? Italy?

[Hoodat]

Stop it already. The only thing that signals more so-called 'stimulus' is more government deficit spending. It has never been about helping the economy. It has always been about allowing the government to spend money it doesn't have without actually having to borrow it.

It's the same thing the Weimar Republic did back in the early 1920s. They didn't print money to stimulate the economy. They printed money to finance government.

[FlingWingFlyer]

It sounds as though somebody doesn’t believe the vomit being spewed by the “labor” department that when fewer people are hired, it causes the “unemployment rate” to drop. LOL! That wacky commie math. It’s something else.

[Red Dog #1]

"It’s just that it won’t be worth anything."

But we're all gonna be millionaires!

[grumpygresh]

Gold spiked up today. Wonder if the banksters can keep hammering it down with shorts.

[sickoflibs]

RE “It’s just that it won’t be worth anything.”
....
But we're all gonna be millionaires”

Yes, my 401K is stilling going up. Pretty soon I will as rich as Romney is.

[Mastador1]

Obamaramadingdong is focused like a laser beam on Reggie’s @ss, err jobs, no the economy, no health care, no immigration, no Mid East peace, no it was right the first time Reggie’s @ss.

[pieceofthepuzzle]

“Yes, my 401K is stilling going up. Pretty soon I will as rich as Romney is.”

Yes, this is the ‘grand illusion’ that keeps people hopeful in the current economy. ‘Stock market’s doing okay, so things must be getting better...’. If they reported holdings and earnings on a ‘purchasing power’ basis, people would be a lot more concerned.

[Red Dog #1]

I’m hoping to just as rich as Al Gore!

[sickoflibs]

RE :”Yes, this is the ‘grand illusion’ that keeps people hopeful in the current economy. ‘Stock market’s doing okay, so things must be getting better...’. If they reported holdings and earnings on a ‘purchasing power’ basis, people would be a lot more concerned.”

When 90% of us are in the top 2% we will have a classless society.

[sickoflibs]

RE :”I’m hoping to just as rich as Al Gore!”

When I reach the top 2% I will look down on the 47%.

[rrrod]

Dollar took a big dump against the Colombian peso.

[Yosemitest]

AN ECONOMIC CHART THAT COULD SPELL TROUBLE
Oct. 21, 2013 by Becket Adams

Fund flows are interesting in that
they help market analysts gauge investor sentiment in specific assets
or the markets as a whole.

“For instance,
if net fund flows for bonds funds during a given month is negative by a large amount,
this would signal broad-based pessimism over the fixed-income markets,”
Investopedia notes, offering a helpful explanation for the concept.

That being said, something interesting happened earlier this year with foreign interest in USD-denominated assets.
Simply put, foreign interest collapsed.

Here’s a chart to help you visualize the drop:


“It is the combination of
the Fed printing money
and slowing domestic US growth
which is likely to lead US funds to be sent abroad
while foreign interest in USD-denominated assets falls,” Morgan Stanley's Hans Redekar wrote.

“Foreign demand for US stocks and sovereign bonds collapsed earlier this year,
and Wednesday’s release of the TIC August report will be important.
Should long-term TIC flows drop below the July level, the USD would come under additional selling pressure,” he adds.

This, of course, may lead to a further drop in foreign interest.

---

This reminds me of a warning we received from long ago.

“... and there ye shall be sold unto your enemies for bondmen and bondwomen,
AND NO MAN SHALL BUY YOU.”

WE WERE WARNED !!!
For those who want to know more, read this commentary, or at least the bottom part on verses 45 through 68.

Thanks, Mr. Becket Adams,
and thanks to the BLAZE and all their staff for putting out this information.

[HiTech RedNeck]

I wonder sometimes if there is a little, overcompensating geek behind that macho sounding moniker. Your stuff is just too pluperfect in appearance (and sometimes suspiciously quickly cobbled together too).

Anyhow — you can’t read the bible worth a hoot because you read it with curse colored glasses.

[Yosemitest]

Time will tell ...

[HiTech RedNeck]

And if you keep this up, you’re going to go to your grave, geek, raging at God because... well for the same reason Jonah got into a snit when told to minister the word of invitation to divine reconciliation to Nineveh, that city which had caused his people so much agony.