Dollar Makes Small Gains
May 16th, 2008 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar erased early losses and firmed against the euro for the second straight day. Late Thursday, the euro was trading at $1.5432 vs. $1.5459 on Wednesday.
The economic news of the day was mostly negative.
The New York Fed’s Empire State Manufacturing index fell to a reading of negative 3.2 in May from a positive 0.6 in April. In Philadelphia, factory activity rose to negative 15.6 in May from 24.9 in April. New York’s data was worse than projected, but Philly’s was better.
The Fed also reported that industrial output of the nation’s factories, mines and utilities dropped 0.7% in April in a broad-based decline led by falling production of motor vehicles. That was worse than a predicted 0.6% decline.
And the Labor Department reported that the number of people filing for the first time for unemployment benefits rose 6,000 to a total of 371,000 on a seasonally adjusted basis in the week ended May 10.
“The recent downward tilt in industrial production and ongoing moderate job losses suggest the U.S. economy is in a mild recession,” wrote Sal Guatieri, economist at BMO Capital Markets.
It’s mild, of course, unless you’re directly affected.
Source: Dollar Makes Small Gains
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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.