Ford has joined GM on credit markets and auto parts makers are added as well. The stock market has gone into freefall but currencies are reacting in fairly muted fashion. EUR/JPY is lower, but the slide is not nearly as dramatic as the move in stocks. The cross is at 135.90. Yesterday’s overnight low was 134.15.
There are no winners in this environment so the only real trades are of the risk-aversion variety. One manifestation of this is the Mexican peso which trades up at 12.90, well above levels where the Mexican central bank was forced to depend the peso by selling dollars yesterday. Stocks are a mere 1200 points above their 2003 lows.
Make it stop…please make it stop…
