Daily Archives: September 9, 2011

As we said goodbye to summer this past Labor Day weekend, we took a break from anticipating the arrival of the New England fall foliage to check out the world currency market this past week. Here are our top headlines from the week:

Nonfarm payroll numbers were released Sept. 2, showing that, for the first time in 11 months, the economy failed to add new jobs in August. Market reactions to this news sent stocks declining, increasing fears of a recession while driving bonds, gold, and the Swiss franc higher. Considered one of the only remaining safe havens for investors, the Swiss franc continues its high demand. As a result, yields for short-term Swiss government debt turned negative Aug. 30 for the second time in a row, meaning that those who invested in these assets paid more for them than they will receive when they fall in three months. Recent numbers also show that gold, another safer investment, rose 12 percent in August. Meanwhile, a combination of the S&P downgrade and the European debt crisis led investors toward Treasuries and bonds, which grew 2.8 percent and 1.99 percent, respectively. In other news, Japan’s newly appointed prime minister Yoshihiko Noda (previously the finance minister) has signaled that a new approach will be taken to ease Japan’s economic issues due to the rising yen.

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