| Currency Traders Send US Dollar Significantly Higher Following NFP ...
Currency traders showed clear confusion following the day's economic figures, with a sharp anti-dollar move leading to later strength. It was a classic case of an “incorrect" reaction to headline figures, as the Change in Non Farm Payrolls came in considerably below consensus forecasts. Those who tried to immediately sell the Dollar following the disappointed were quickly burned, as a closer examination of the labor report showed that a previous revision effectively left figures squarely in line with expectations. Despite a slightly higher unemployment rate, currency traders quickly corrected their previous mistake and sent the Greenback to close near daily highs. Such occurrences arguably provide excellent trading opportunities, with tight money management allowing for solid potential for profit. Bonds – US 10-Year Note Futures Bonds were no different than their currency counterparts, with the 10-year Treasury Note future posting a dramatic reaction to the morning's NFP report.
Yen Declines as Speculation Ends G-7 Will Call for Appreciation
Feb. 10 (Bloomberg) -- The yen declined versus the euro and dollar this week as speculation ended that the Japanese currency's weakness would be a focus of the two-day Group of Seven nations meeting that concludes today in Essen, Germany. Japan's currency fell 0.8 percent versus the euro, approaching a record low. France's Finance Minister Thierry Breton said late yesterday the G-7 won't single out one currency in its statement. Investors cut bets on a Bank of Japan interest-rate boost while Europe's borrowing costs may rise. ``A BOJ rate hike in February becomes less likely,'' said Michael Woolfolk, senior currency strategist at the Bank of New York in New York. ``Once we get past the risk of the G-7 communique, we expect the yen to weaken.'' The yen fell to 121.71 per dollar yesterday, from 121.13 on Feb.
Treasury boss losing currency by losing focus
Owning one of these key-ring attachments, which count down by the second the remaining time of the Bush presidency, might remind the former Wall Street titan that his chances of leaving a legacy in government service are dwindling by the day.
Saying, as he told CNBC on Tuesday, that a solution to funding Social Security might have to wait until the next president is not a film clip he wants on his highlight reel.
A similar remark by Bush regarding the U.S. invasion of Iraq is solidly inscribed in many pending Bush-leaves-office stories.
Paulson's pledge to the House Ways and Means Committee on Tuesday that "everything is on the table" in terms of reforming the nation's social entitlement programs, including Social Security and Medicare, is similarly untimely.
G-7 Urges Markets to Note Japan `On Track,' Omits Yen (Update1)
Feb. 10 (Bloomberg) -- Finance ministers and central bankers from the Group of Seven nations urged investors to recognize Japan's economic recovery is ``on track,'' stopping short of saying the yen's decline threatens global growth. At a meeting in Essen, Germany, the officials bridged a divide between Europeans who want the yen to strengthen, and the U.S. and Japanese who say investors should be free to set currency values without government interference. With the yen trading near the record low reached against the euro last month, European officials signaled they'll keep sounding the alarm on the yen in the hope speculators will tune into their complaints that it's out of kilter with Japan's expansion. ``It's a compromise,'' said Marc Chandler, head of currency strategy at Brown Brothers Harriman in New York.
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