Dollar’s First Monthly Gain Since June Trims 2009 Loss to 4.2%

[OntarioVanMan]

U.S. dollar making a comeback.

Can it sustain this...

U.S. Labor Department reported the fewest monthly job losses since before the recession, fueling speculation the Fed will remove stimulus measures and prepare investors for higher interest rates in 2010.

It was the first monthly advance in six months and the biggest gain since January 2009.

Dollar?s First Monthly Gain Since June Trims 2009 Loss to 4.2% - Bloomberg.com

 

[greg334]

U.S. dollar making a comeback.

It seems to be too premature to cheer just yet.

The dollar has had a gain against foreign currency which means little with the interest rates being sustained at below market levels. The biggest competitor, Euro, has been artificually supported through a number of restrictions and dumping of assets into the fund that runs the monitary fund for the EU. If that support was removed, then it would fall back to being on par with the Dollar and the Dollar may not look so weak.

U.S. Labor Department reported the fewest monthly job losses since before the recession, fueling speculation the Fed will remove stimulus measures and prepare investors for higher interest rates in 2010.

Doesn't seem right - the article mentioned that there were a 1000 job loses this monthly cycle but it doesn't include seasonal people who didn't file for unemployment which is what happens every year.

The other thing is the Fed won't revisit raising interest rates until April 2010 unless Obama administration sees the need to move on them. I expect that if they raise it, it will be a half of point at best and they will be overly cautious because of the need to continue to push for more loans being made in the commercial market which has yet to happen. The interest rates should have been raised before a dime of money was handed out to shore up our economy and it seems without the real concern that our lenders, like china, have said, we are on the losing end of all of this with this outdated and rather false hope giving Keynesian theory to solve our economic issues - which didn't work the first time around.

 

[OntarioVanMan]

It is just nice to see some positive movement no matter how small...

 

[greg334]

It is just nice to see some positive movement no matter how small...

But it's not positive by any means - if it was say compared to November of 2008, then yes it would be. The press has been playing games with information to make it look like we are coming out of a recession and very few media outlets will tell the truth.

We are no where's near the place we should be and with a lot of indecisive moves in congress and the WH, everyone is in a holding pattern and not knowing what to expect.

For example, congress is going to let the bush tax changes go and we will return to the Clinton tax mess. This will cause a lot of problems for those who provide the jobs that we need. There is only so much money to be had. IF health care cr*p gets passed, then that is more taxes on the backs of the small business employer, and less places for people to work which means less tax revenue in the long run.

The bush tax changes should have been made perminate, they had the congress and the WH but instead they comprimised on democratic bills and Bush didn't hesitate to sing bills he should have fought against.