AMERICA shocked global markets today as it unveiled the worst set of job figures since the recovery out of the financial crisis.
The dollar and world stock markets plunged today after it was revealed just 38,000 new US jobs were created last month – below expectations of around 164,000 and the the lowest figure since 2010.
Furthermore, employers hired 59,000 fewer workers in March and April than had previously been reported.
Risks for a further squeeze lower for the greenback, says Bank of America.
In the wake of last week’s dovish decision from the Federal Reserve, investors have been throwing in the towel on the U.S. dollar.
But Bank of America Merrill Lynch’s proprietary positioning data suggests there’s still another major shoe to drop for the greenback. In a note to clients, FX Strategists Myria Kyriacou and Athanasios Vamvakidis illustrate that hedge funds’ long position in the U.S. dollar remains substantial relative to the past 12 months and to other investors. Continue reading
Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, believes a U.S. dollar crisis is underway.
“The dollar is very overvalued…and the dollar is a bubble,” he told Newsmax Prime on Aug. 11. “This dollar bubble is going to burst.”
Indeed, less than two weeks after Schiff’s interview, the U.S. dollar index, which measures the greenback against a basket of currencies, has retreated 2.1% to 93.063 for a fourth-straight loss.
And U.S. markets are getting rocked with a major sell-off – last week finished out as the worst for stocks in four years… Continue reading