Can the Greenback Hold On To Its Gains Next Week?
• British Pound Plunges Over 800 Points Intraday As UK GDP Signals Recession • Euro Dives Amidst Evidence of Q3 Economic Contraction, ECB Rate Cuts • Japanese Yen Hits 10+ Year Highs as Deleveraging Continues US Dollar: Can the Greenback Hold On To Its Gains Next Week? The US dollar and Treasuries surged on Friday as deleveraging led funds to flow away from stocks, commodities, and carry trades into safe-haven assets. Indeed, recession concerns weighed heavily on risk appetite, and the nearly 10 percent drop in Japan’s Nikkei 225 index triggered pronounced fears of similar declines in other markets. In fact, European shares plunged almost 10 percent themselves intraday, sending DJIA and S&P 500 futures to limit down. Fortunately, this did not translate to massive losses during the NY trading session, though we did see the DJIA test the October 16 lows before recovering slightly and ending the day down 3.59 percent. There were two fundamental factors coming in to play here, none of whic
