From the aftermath of the debt ceiling crisis and the S&P downgrade to the release of the latest unemployment numbers, we’ve been busy counting the latest stories in the world currency markets. Check out our top picks of the week:
- SEC investigating S&P's downgrade of U.S. debt: report, Reuters, Aug. 12, 2011
- US Jobless Claims Drop - USD/JPY and USD/CHF Rise, Forex Crunch, Aug. 11, 2011
- Bank of Japan Running Out of Levers as Yen Climbs, Counting Pips, Aug. 10, 2011
- France eyes more deficit cuts as ratings eyed, Reuters, Aug. 10, 2011
- Mimicry: An investor’s optimistic answer to the economic crisis, Currensee blog, Aug 9, 2011
- Volatility Continues Unabated, The Wall Street Journal, Aug. 10, 2011
- S&P Downgrade, Volatile Market Highlight Need for New Currencies and Stock Exchanges, Seeking Alpha, Aug. 8, 2011
- Gold Futures Surge to Record as Investors Seek Haven After U.S. Rating Cut, Bloomberg Businessweek, Aug. 7, 2011
News on the S&P downgrade made headlines and many wonder what’s next for the U.S. economy. After a tumultuous week in the stock market, the CBOE Market Volatility Index rose 26 percent, marking a 29-month high. Some investors are stressing a need for new currencies and stock exchanges either in the form of a world economic system managed by the International Monetary Fund or cyber currencies. Meanwhile, gold futures soared due to the rating cut, reaching a record $1,697.70 an ounce. The U.S. Securities and Exchange Commission launched an investigation last week, asking Standard & Poor’s to provide information on employees who were informed of the downgrade decision before it was announced. Concern has once again risen for the European economic crisis as falling shares in French banks prompted finance and budget officials to search for new ways to trim public deficit. Employment numbers released last week show that U.S. unemployment benefits have dropped to a four-month low. These statistics have already impacted the currency markets; both the USD/JPY and USD/CHF have increased, which “releases the hot air” out of the franc and the yen. Japan continues to face problems with the rising yen, as the currency’s increase against the U.S. dollar leads to a cut in Japan’s export sales.
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