AUTOREFRESH 
Another day, another 10%
By admin || October 8, 2008 at 16:09 GMT
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In Latin America, that is. The MSCI LatAm index is tumbling. down another 10% today. The US is down less than 2%, a relative victory compared to other markets, like Tokyo. I know, I know, it’s early yet.
It is going to be tough for EUR/JPY, and other JPY crosses, the best barometers of risk in the currency markets, to rally much against this backdrop.
the interesting thing is how well the eur/usd is holding up – why aren’t we seeing a further decline in that? what’s your take on that, Jamie?
I think part of it is that the action has turned to the commodity currencies..They are selling AUD, CAD, Kiwi versus EUR. Throw in EUR/GBP as well. That’s helping cushion the blow to the euro…
Peter Wadkins had a great comment on TFN-IFR a short while ago panning the ECB over their inaction in recent weeks and for only taking back the July hike which was a poor judgment call. Given the state of recent EZ data and forecasts from outside sources such as IMF and others, it is a temporary holding pattern largely resulting from traders exiting other positions and ill advisedly thinking EUR is a safe parking place.
Peter Who?
Wadkins. I’ll send you the article.
Dennis, I think Jamie is pulling your chain. TFN/IFR was his last employer (and mine for 10 blissful years)
I think if the markets calm down, stabilize for a while, we will see a rally in euro up to 1.41-1.44 in the next few weeks – after that who knows? Agree, disagree?
Szabi- I think you’re spot-on. All predicated of course on financial markets calming down.