Our Two Cents – Week of 8/29/11
Posted by Michelle Heath in Weekly News Roundup, tags: Apple, Bernanke, EUR, Fx, Japan, S&P, Silver, Steve Jobs, USD, Wall Street, world currency market
Summer may be drawing to a close, but the latest news in the world currency markets continues to bring the heat. Check out the top stories we’ve been reading this week:
- Transaction tax may drive FX market from London, Reuters, Aug. 23, 2011
- Gold Reaches $1,913.50 – Smart Money Moving Into Silver As UBS Says $50 Silver In 3 Months, Zero Hedge, Aug. 23, 2011
- S&P Prompts $1 Trillion Stock Loss With Rating Belied by Bonds, Bloomberg BusinessWeek, Aug. 24, 2011
- Japan Rolls Out New Yen-Stopping Measures, The Wall Street Journal, Aug. 25, 2011
- No QE3 in Jackson Hole – EUR/USD Ticks Lower, Forex Crunch, Aug. 26, 2011
- Steve Jobs Is Out, Panic Sellers Are Out, Where Apple Is Headed Now, Seeking Alpha, Aug. 26, 2011
- After Storm, Wall Street Gets Back to Work, The New York Times, Aug. 29, 2011
Steve Jobs stepped down as CEO of Apple Wednesday, signaling a momentous change for the technology industry. While many were anticipating an enormous drop in Apple’s stock, it closed Thursday down only 0.65 percent. By comparison, recent numbers show that the Standard & Poor’s index has dropped 6.7 percent ($1.03 trillion) since its Aug. 5 downgrade of U.S. debt. Federal Reserve Chairman Ben Bernanke’s speech last week in Jackson Hole, Wyo., didn’t reveal much about QE3, but he did announce that the Fed will extend its meeting in September from one to two days in order to discuss future ways to relieve the economy. Market volatility as a result of these economic issues continues to affect the currency markets, as all major currencies have moved higher against gold, despite gold reaching record nominal highs of $1,913.50 per ounce. Japan once again took steps to control the yen, this time by creating a fund backed by the government that supports exporters who feel the weight of the rising currency. Also this week, German Chancellor Angela Merkel and French President Nicholas Sarkozy met to discuss plans for a financial transaction tax, the effects of which could potentially increase market volatility and “threaten London’s status as the world’s biggest foreign exchange center.”
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