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07-30-2008, 05:22 PM
|  | Dejected conservative. | | Join Date: Jun 2008 Location: Michigan, USA
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Rep Power: 13 | | | US dollar jumps after jobs grow
Quote:
The US dollar traded near a one-month high versus the euro and the yen after an ADP Employer Services report showed US companies unexpectedly added jobs.
The greenback pared gains as an unexpected decline in gasoline inventories pushed crude oil prices higher. The Australian dollar dropped against all of the other major currencies as a report showed home-building approvals unexpectedly dropped in June.
''The ADP number is not bad, but I think the dollar's rally was a bit stretched,'' said John McCarthy, director of currency trading at ING Financial Markets. ''Then oil spoiled the party.''
The dollar reached $US1.5522 per euro, the strongest level since June 24, before trading at $US1.5584 per euro in New York, compared with $US1.5588 yesterday. The US currency was little changed at 108.08 yen, compared with 108.11. It touched 108.33, the highest level since June 25. The euro traded at 168.44 yen, compared with 168.53.
New Zealand's currency decreased to a 10-month low against the US dollar after Reserve Bank Governor Alan Bollard said in a speech in Auckland that ''weakness in the economy will be sufficient to bring inflation and inflation expectations down over the medium term.'' The kiwi dropped 1.1% to 73.23 US cents after touching 73.16, the lowest since September 25.
The Australian dollar declined 1% to 94.32 US cents on the housing report. It fell 0.3% to $1.2841 versus the New Zealand dollar.
Company Hiring
The US dollar strengthened earlier versus the euro after ADP reported that companies added 9000 jobs in July after cutting a revised 77,000 positions in the previous month. The median forecast of 29 economists surveyed by Bloomberg News was for a reduction of 60,000 jobs.
''The worst may be behind the US dollar,'' said Steven Butler, director of foreign-exchange trading at Scotia Capital. ''Perhaps the US is starting to show some small signs of recovery.''
The Labor Department will probably report on August 1 that non-farm payrolls dropped by 75,000 this month following a decline of 62,000 in June, according to the median forecast in a separate Bloomberg survey.
The US payroll report, which includes government hiring, has shown a reduction in jobs each month this year, while ADP has recorded only two declines
| US dollar jumps after jobs grow | smh.com.au
Source - read the full story here
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07-30-2008, 07:11 PM
|  | USMB Member | | Join Date: Jul 2008 Location: Central California
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Rep Power: 15 | | My bad! I thought this meant they were actually "growing jobs" .... like in the dirt.  |
07-30-2008, 07:15 PM
| | Dejected conservative. | | Join Date: Jun 2008 Location: Michigan, USA
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Originally Posted by CA95380  My bad! I thought this meant they were actually "growing jobs" .... like in the dirt. | wouldn't that be neat 
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Charles_Main
"Whenever a man has cast a longing eye on offices, a rottenness begins in his conduct."
Thomas Jefferson
"Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition."
Thomas Jefferson |
07-30-2008, 07:19 PM
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Originally Posted by Charles_Main wouldn't that be neat | Or on trees. That would be great too .. but who would we get to 'pick them'  lol |
07-30-2008, 08:38 PM
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Originally Posted by CA95380 Or on trees. That would be great too .. but who would we get to 'pick them' lol |
Why the illegals of course!!
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Charles_Main
"Whenever a man has cast a longing eye on offices, a rottenness begins in his conduct."
Thomas Jefferson
"Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition."
Thomas Jefferson |
07-30-2008, 09:36 PM
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Originally Posted by Charles_Main Why the illegals of course!! |  Will never work. Why? Because then they could not get Medical |
07-30-2008, 09:50 PM
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Originally Posted by Charles_Main | The dollar won't stregthen long term, without a severe reduction in governmental spending. In addition the dollar would be well served if the US was able to reduce it's trade deficit.
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07-30-2008, 11:21 PM
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Originally Posted by jreeves The dollar won't stregthen long term, without a severe reduction in governmental spending. In addition the dollar would be well served if the US was able to reduce it's trade deficit. | Well really we have to offer a reasonable interest rate on on our debt instruments for the dollar to have a substantial recovery. The Fed has managed to work itself into a corner by trying to create a 'soft landing" when instead they should have just let a lot of these banks who wallowed in their excess fail without bailout, take the bitter pill and move on |
07-30-2008, 11:34 PM
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Originally Posted by Zoomie1980 Well really we have to offer a reasonable interest rate on on our debt instruments for the dollar to have a substantial recovery. The Fed has managed to work itself into a corner by trying to create a 'soft landing" when instead they should have just let a lot of these banks who wallowed in their excess fail without bailout, take the bitter pill and move on | Exactly 300 billion dollars in possible bailouts doesn't improve the strength of the dollar. So we bailout corrupt lenders while the price of the dollar plummets, its idiotic.
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Be thankful we're not getting all the government we're paying for.
Will Rogers
Socialism is a philosophy of failure, the creed of ignorance, and the gospel or envy, its inherent virtue is the equal sharing of misery.
Winston Churchill
And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.
JFK
No man's life, liberty, or property are safe while the legislature is in session. -- Mark Twain
Last edited by jreeves; 07-31-2008 at 12:30 AM.
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07-31-2008, 12:04 AM
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Originally Posted by jreeves Exactly 300 billion dollars in possible bailouts doesn't improve the strength of the dollar. So we bailout corrupt lenders while the price of the dollar balloons, its idiotic. | Well I can't really disagree with that at all. We need to let these organizations that engaged in excessive behavior fail! No matter how much pain it causes. It teaches a lesson. Recessions are supposed to purge the weak. They are VITAL to economic vitality. When you subvert the cleansing mechanism you simple fail to teach the ignorant and short sighted the lessons they need to learn. |
07-31-2008, 01:21 AM
| | Registered User | | Join Date: Jun 2008 Location: Maine
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Rep Power: 39 | | | Of course when more Americans are gainfully employed the dollar gets stronger.
Free trade?
Isn't free,
duh!
I wonder if someone would be kind enough to point that out to the econ boys at University of Chicago?
They seem to have missed that fact because they are busy congratualting themselves about how swell free trade is working out for about 5% of us. |
07-31-2008, 01:47 AM
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Originally Posted by editec Of course when more Americans are gainfully employed the dollar gets stronger.
Free trade?
Isn't free,
duh!
I wonder if someone would be kind enough to point that out to the econ boys at University of Chicago?
They seem to have missed that fact because they are busy congratualting themselves about how swell free trade is working out for about 5% of us. | Actually the employment rate plays only a small part in the value of the dollar.
The dollar has been losing value, weakening its status as the world’s major currency and setting off jitters in the international financial system. The falling dollar is not just a technical matter for financial market experts: trillions of dollars in value have shifted in the course of about eighteen months, reducing the reserves of the world’s central banks and knocking down the value of all US assets on the international marketplace. Analysts worry that a serious dollar selloff could create panic in the markets and lead to a global financial meltdown. Even if the worst-case is averted, a declining dollar may weaken the power of the United States, reorganize global markets and shift strategic power in the international system
After rising sharply against the Euro during 1999 and most of 2000, the dollar started to tumble in late 2001 and it continued its decline through mid-2003, losing more than a quarter of its value against the euro (see "The Dollar's Ebb and Flow"). After a brief rally in the summer, the dollar started another steep retreat that is likely to continue. Many financial analysts expected the dollar to weaken because of the growing US trade deficit on its “current account,” which includes goods and services, income payments such as interest and dividends and unilateral transfers such as foreign aid and worker remittances (see chart). But few thought the dollar would fall so far and so fast. The biggest single factor in the dollar’s fall has been the soaring deficit in US trade. The United States imports far more than it exports in goods and services. US consumers have a strong appetite for Japanese automobiles, Chinese clothing, German machinery and Finnish mobile phones. Oil imports, by far the largest item, grow steadily. US companies are not able to export products and services of the same value. While Microsoft, Coca Cola, Boeing and Hollywood may wrack up large earnings and gain high visibility for US exports, they simply cannot match the foreign products and services purchased by US companies and consumers. In 2002, imports of goods and services totaled $1,652 billion, while exports amounted to only $1,203 billion. The difference is made up by net foreign lending and investments. Fall of the Dollar - Social and Economic Policy - Global Policy Forum
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Be thankful we're not getting all the government we're paying for.
Will Rogers
Socialism is a philosophy of failure, the creed of ignorance, and the gospel or envy, its inherent virtue is the equal sharing of misery.
Winston Churchill
And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.
JFK
No man's life, liberty, or property are safe while the legislature is in session. -- Mark Twain |
07-31-2008, 08:56 AM
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Originally Posted by jreeves Actually the employment rate plays only a small part in the value of the dollar. | Really? Let's see if you really understand why Quote: |
The dollar has been losing value, weakening its status as the world’s major currency and setting off jitters in the international financial system.
| Yes! Quote: |
The falling dollar is not just a technical matter for financial market experts: trillions of dollars in value have shifted in the course of about eighteen months, reducing the reserves of the world’s central banks and knocking down the value of all US assets on the international marketplace.
| Why? Where did the dollars value go and why did it go? Quote: |
Analysts worry that a serious dollar selloff could create panic in the markets and lead to a global financial meltdown. Even if the worst-case is averted, a declining dollar may weaken the power of the United States, reorganize global markets and shift strategic power in the international system
| Yes, but I'm still waiting to see if you'll tell us why this happened. Quote: |
After rising sharply against the Euro during 1999 and most of 2000, the dollar started to tumble in late 2001 and it continued its decline through mid-2003, losing more than a quarter of its value against the euro (see "The Dollar's Ebb and Flow"). After a brief rally in the summer, the dollar started another steep retreat that is likely to continue. Many financial analysts expected the dollar to weaken because of the growing US trade deficit on its “current account,” which includes goods and services, income payments such as interest and dividends and unilateral transfers such as foreign aid and worker remittances (see chart). But few thought the dollar would fall so far and so fast.
| Yes. Still ... why is this happening? Quote: | The biggest single factor in the dollar’s fall has been the soaring deficit in US trade.
| Bingo!
And why is there a soaring deficit? Quote: |
The United States imports far more than it exports in goods and services. US consumers have a strong appetite for Japanese automobiles, Chinese clothing, German machinery and Finnish mobile phones.
| An appitite that thee public would have trouble not feeding because why? Because FREE TRADE makes it problematic for american manufacturers to compete with third world imports, mostly.
And when that happens, and millions of industrial jobs (including managments jobs, mind you) go off shore, how much taxes can those displaced workers pay?
Less than they could, that's for damned sure. Quote: |
Oil imports, by far the largest item, grow steadily.
| Okay. Quote: |
US companies are not able to export products and services of the same value.
| That's because we don't make as much stuff.
Our trade policies have been perverted to benefit hi tech industry at the expense of low tech industry.
Hence while General Electric (et al) might be selling jet engines or nuclear technology, they are ONLY doing so because those nations which make lo tech stuff are allowed to import their stuff, thus putting more Americans in lo tech industries OUT of WORK. Quote:
While Microsoft, Coca Cola, Boeing and Hollywood may wrack up large earnings and gain high visibility for US exports, they simply cannot match the foreign products and services purchased by US companies and consumers. In 2002, imports of goods and services totaled $1,652 billion, while exports amounted to only $1,203 billion. The difference is made up by net foreign lending and investments.
Fall of the Dollar - Social and Economic Policy - Global Policy Forum | Yup, you get it...sort of, I think.
And yet you start out by claiming that more or less Americans working have little to do with the decline or rise in the dollar in comparison to other currencies..
Clearly there is a connection between how many Americans are working (and paying taxes and buying stuff made in the USA) to the decline of the dollar against other currencies.
I don't think either of us is missing that, yet somehow you arrived at the place where you thought I was wrong?!
I'm confused, or perhaps you missed telling me something that you think what you and I can both agree is the root source of the problem, negates my point that working Americans make the dollar stronger?
Last edited by editec; 07-31-2008 at 09:01 AM.
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07-31-2008, 08:18 PM
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Originally Posted by jreeves Exactly 300 billion dollars in possible bailouts doesn't improve the strength of the dollar. So we bailout corrupt lenders while the price of the dollar plummets, its idiotic. | NBC, a network I simply cannot stand, trying to paint the worst picture of everything they can, had a sample family that the new housing bill will not effect. I guess if you don't already have a reasonable credit rating you will not get the refinancing deal.
I'm pretty sure they wanted to make you fell sorry for this family but they had taken out a $50,000 variable rate second mortgage out in California to do God knows what, and their rate is scheduled to bloom to 12% next year and they said they couldn't do it. The also have run up $40,000 of creditcard debt and have defaulted on two of them, and have two vehicles, a new Toyota 4Runner and a fairly new Minivan. He's a teacher and she';s a hairdresser????? So what's wrong with this picture? Why should we have any sympathy for this family at all who is living a $100,000+ lifestyle on $60,000/yr  |
07-31-2008, 10:22 PM
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Originally Posted by Zoomie1980 NBC, a network I simply cannot stand, trying to paint the worst picture of everything they can, had a sample family that the new housing bill will not effect. I guess if you don't already have a reasonable credit rating you will not get the refinancing deal.
I'm pretty sure they wanted to make you fell sorry for this family but they had taken out a $50,000 variable rate second mortgage out in California to do God knows what, and their rate is scheduled to bloom to 12% next year and they said they couldn't do it. The also have run up $40,000 of creditcard debt and have defaulted on two of them, and have two vehicles, a new Toyota 4Runner and a fairly new Minivan. He's a teacher and she';s a hairdresser????? So what's wrong with this picture? Why should we have any sympathy for this family at all who is living a $100,000+ lifestyle on $60,000/yr |
Could they be living beyond their means...maybe just maybe?
Why should everybody else have to pay for their lack of fiscal displine?
Good post Btw Zoomie...We get it but there is a ton of people who don't get it.
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Be thankful we're not getting all the government we're paying for.
Will Rogers
Socialism is a philosophy of failure, the creed of ignorance, and the gospel or envy, its inherent virtue is the equal sharing of misery.
Winston Churchill
And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.
JFK
No man's life, liberty, or property are safe while the legislature is in session. -- Mark Twain | | Thread Tools | | | | Display Modes |  Linear Mode | 
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