The dollar was still stuck in a rut through most of yesterday's trading, in spite of a weekly jobs report that showed jobless claims climbed to 500,000. But Bundesbank head Alex Weber dropped a bomb on the markets late yesterday and sent the euro (EUR) running for cover. The euro has fallen over one cent in early trading and is in danger of losing the $1.27 handle for the first time in a month. More on the euro in a sec, but first let's review the jobs data, which dominated the news yesterday.
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More Stimulus?
Today has seen a return to risk aversion, after watching the currencies have their way with the dollar, yen (JPY), franc (CHF), and Treasuries on Friday. Remember on Friday when I told you that in the “old daysâ€? you could bet a dollar to a Krispy Kreme that if the Jobs Jamboree was bad, the dollar would get sold, and if it was good, the dollar would rally, but that had changed during the financial meltdown… And so it was on Friday… The labor report wasn't as bad as it was thought to be, but the dollar got sold.
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