• Australian dollar hit 0.9918, highest level since the currency was freely floated (Reuters)
• Brazilian Real closed Friday at its strongest level in more than two years (WSJ)
• Dow Jones Index closes above 11,000 for first time since May (AP)
• Bank of America halts foreclosures in 50 states amid growing furor over document errors (AP)
• US nonfarm payroll employment down by 95,000 in September (BLS)
• US unemployment rate was unchanged at 9.6%; U6 unemployment rate at 17.1% (Bloomberg)
• IMF predicts that the global economy would grow by 4.8% over the year as a whole (Economist)
• Gold price at yet another record briefly above $1360 on Thursday (Reuters)
• European Central Bank kept interest rates steady at 1.0% (Economy.com)
• Euro area GDP increased by 1.0% during the second quarter of 2010 (Eurostat)
• US 30-year mortgage rates fall to 4.27% lowest on records dating back to 1971 (AP)
• The Bank of Japan cut its overnight call rate target to a range of 0-0.1% from 0.1% (Bloomberg)
• The Reserve Bank of Australia kept its key cash rate unchanged at 4.5% (Reuters)
|Weekly Market Barometers|
Chart Of The Week
The US Dollar continues to be the leader against other currencies in a race to the bottom. Meanwhile, Gold has been picking up the pieces appreciating in value to make up for the perceived loss in purchasing power from the declining US Dollar – at least in part. The Gold bugs continue to cheer while ever more retail investors seem to develop a desire to jump on the running train. Before loading up and jumping on this train, take a look at the very colorful history of the most precious of all metals. Please enjoy this fascinating chart.
|(Click on the chart for a larger image)|
Please consider this illuminating write-up on QE2 by Ed Yardeni: Why QE Doesn’t Work
Here’s an interesting quote from the article:
Bernanke knew back in 1988 that quantitative easing doesn’t work. Yet, in recent years, he has been one of the biggest proponents of the notion that if all else fails to revive economic growth and avert deflation, QE will work.
Good luck and good investing!
Neither the information nor any opinion contained in this communication constitutes a solicitation or offer by us to buy or to sell any securities, futures, options or other financial instruments or to provide any investment advice or service. Each decision by you to do any investment transactions and each decision whether a particular investment is appropriate or proper for you is an independent decision to be taken by you. In no event should the content of this communication be construed as an express or an implied promise, guarantee or implication by or from us that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Please note that there is no requirement and no commitment to make any payments to FX Investment Strategies LLC in order to access our published information be it via email or via website publication. All information is publicly available without any required monetary consideration. Any payments or donations made by you are deemed to be voluntary and cannot be considered as payments for investment advice given to you.