Dollar Drifts Lower
May 8th, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar prolonged its slide against the euro. Late Thursday, the euro was trading at $1.3403 vs. $1.3341 on Wednesday.
The common currency got a boost, as MarketWatch.com wrote, “after the European Central Bank announced minimal actions that would hurt the region’s shared currency while stabilizing the region’s financial markets and economy.
“The European Central Bank cut borrowing costs and said it would buy up to 60 billion euros ($80 billion) in covered bonds, a security popular in Europe and backed by mortgages or public-sector loans …
“As ECB President Jean-Claude Trichet discussed details of the plan’s size and timing, traders became more comfortable with the notion it was a targeted move and would not be immediate, relieving fears that it was similar to quantitative easing maneuvers that are generally corrosive to a currency.”
The euro’s gains were capped, though, after the Labor Department said initial jobless claims fell 34,000 to 601,000 in the week ending May 2. That’s an awful number, but the lowest level since January.
At the same time, continuing claims reached a new record high, adding 56,000 to reach 6.35 million in the week ended April 25. Continuing claims are a broad indicator of the difficulties of current job searching. Now, today, come April’s unemployment numbers, with most analysts expecting a slowing.
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.