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JPY on the march again.
The Japanese Yen is seeing accelerated gains with EUR/JPY presently at the days low of 150.50. As has been well-documented, the JPY garners support in times of uncertainty as the market becomes risk averse and looks for safe havens. Well these are most surely uncertain times!!! The only slight surprise is that the JPY didn’t really strengthen straight off the bat once it became clear the bailout package hadn’t been passed. It’s on a bit of a roll now though.
Treasury: Will use “all tools” to protect markets.
In the wake of the surprise “no” vote a spokesman for The Treasury Department has said it will use “all tools” at its disposal to protect financial markets. White House spokesman Tony Fratto meanwhile said President Bush has asked his economic advisors for a meeting, ”unsure” of the next step. Meanwhile the Dow is off its low, but is still down a huge 600 points on the day.
Treasury: Will use “all tools” to protect markets.
In the wake of the surprise “no” vote a spokesman for The Treasury Department has said it will use “all tools” at its disposal to protect financial markets. White House spokesman Tony Fratto meanwhile said President Bush has asked his economic advisors for a meeting, ”unsure” of the next step. Meanwhile the Dow is off its low, but is still down a huge 600 points on the day.
Treasury: Will use “all tools” to protect markets.
In the wake of the surprise “no” vote a spokesman for The Treasury Department has said it will use “all tools” at its disposal to protect financial markets. White House spokesman Tony Fratto meanwhile said President Bush has asked his economic advisors for a meeting, ”unsure” of the next step. Meanwhile the Dow is off its low, but is still down a huge 600 points on the day.
Treasury: Will use “all tools” to protect markets.
In the wake of the surprise “no” vote a spokesman for The Treasury Department has said it will use “all tools” at its disposal to protect financial markets. White House spokesman Tony Fratto meanwhile said President Bush has asked his economic advisors for a meeting, ”unsure” of the next step. Meanwhile the Dow is off its low, but is still down a huge 600 points on the day.
No place to hide
Energy futures settlement today reflect carnage:
Market Last Change
CL 9637 -1052
HO 27604 -2345
RB 23970 -2681
Heading to the close of pit trading on the IMM EURUSD is 14487 with spreads at 5.0 pips vs the usual 0.0 on my electronic platform. cable sitting at 18145 and USDCHF 10841. Stunning day with fun and frolic to come in Asian trading and of course the EZ in the morning.
There will be more than a few fx traders will spend restless or sleepless nights.
TARP vote is negative
205 for
228 against
218 needed to pass, probably be some reworking and another attempt but there was a decidedly partisan tilt to the results
The squeeze goes on and so does the talking about it
Noticed two items on the wire a few minutes ago one noting primary dealers were heavily into the discount window trough (no surprise there) and the second that fed funds futures were pricing in a 50 beep cut at the October FOMC meeting.
Wew have seen the FF futures “pricing in cuts” for many months when in fact no such moves were made but more importantly, the issue is not one of the cost of borrowing funds but rather availability. Anectdotally, I was chatting with an old school chum yesterday who mentioned his daughter had been a commercial lending officer with a major bank in Boston. She was laid off a short while back fter being told not to make any new loans whatsoever. The bank flatly stated they we hoarding available funds for their own use.
Bottom line: I would forget chatter about a fed funds or discount rate cut for now. It would serve no purpose to do so.
Ailing European financial institutions could lend JPY ongoing support.
Fortis in Belgium; Hypo Real Estate in Germany; Bradford & Bingley in the U.K.; Dexia in Belgium/France and Glitnir in Iceland, the list of ailing financial institutions in Europe continues to grow at a rather alarming rate. Does anyone really think we’ve seen the last European financial insitution needing to be bailed out, or at least given a helping hand? The answer is most probably a resounding “No.” Those who thought the credit crisis was purely U.S.-centric have been rudely awakened by the events of the past week. Against this backdrop, the JPY could well see further strength against the European majors. .
Energy futures part of the parade
Crude oil (CL), traded briefly below $100 once again and has had a very muted recovery since currently at $100.42, – $6.47. RBOB and heating oil also sharply lower.
Has the appearance of a serious liquidating market and further risk aversion and/or concession by leveraged accounts.
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