(As of 7:11 am pacific)
The threat of a downgrade of
US debt is sending the dollar markedly lower today. The threat, by research and ratings company
Moody’s, is linked to the approaching fiscal cliff and how Congress will deal
with it over the next few months. Oil
and gold are up moderately while interest rates are mixed. The US trade deficit is up slightly, likely a
result of higher oil prices. Stock markets are rallying on generally positive
news from Europe and the Far East, where China has reaffirmed its growth target
for the year. Company news is also
positive, with McDonalds reporting higher same store sales, among other
positive news reports. There is also
hope that another round of quantitative easing by the Fed will juice the
markets with liquidity. There is a
sense of positive momentum today, in spite of the Moody’s threat.
