Oct 21. Dollar turns back down.

Oct 21.  The dollar turned back down yesterday, commodities rallied.  US rates eased slightly. 
–Geithner says he would like to see world economy rebalance in a sustainable way at this weekend’s G20 meeting.  Apparently he believes Fed monetization of treasuries and dollar depreciation is “sustainable”. 
–Beige book yesterday was mixed.   “There were widespread reports across Districts that firms anticipated increased costs of employee benefits as a result of healthcare reform. Hiring remained limited, with many firms reluctant to add to permanent payrolls given economic softness.”
–Credit Suisse reported large drop in profit due to falling trading activity.  Citadel also announced layoffs.  Trading as % of GDP is adjusting lower, likely for the better, but I’m not sure that this type of news is positive for the stock market generally.
–EDM1/EDU1 spread closed at 5 bps, while EDH1/EDM1 closed 3.5.  EDM/U 9950c spd closed 1.25, with June over…I am inclined to sell this at 1.5 if possible. 
–News today includes Jobless Claims expected 455k.  Leading Indicators expected +0.3% and Philly Fed expected 1.0.

Posted on October 21, 2010 at 4:31 am by alexmanzara · Permalink
In: Eurodollar Options

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