Dollar Falls; U.S. Factory, Jobs Data May Show Slowing Economy/ Bloomberg

[TexasLawyer]

Dollar Falls; U.S. Factory, Jobs Data May Show Slowing Economy

By Ron Harui and Chris Young

Jan. 2 (Bloomberg) -- The dollar fell for a fifth day against the euro on speculation U.S. reports this week will show job creation slowed and manufacturing growth stalled, bolstering the case for the Federal Reserve to cut interest rates.

Data due today and tomorrow may show Europe's factories expanded at a faster pace and German unemployment dropped, adding to signs that the European Central Bank will raise borrowing costs. The dollar slid against 15 out of the 16 most actively traded currencies tracked by Bloomberg.

``Disappointing numbers this week will get us back to thinking when will the Fed cut rates next,'' said Harvinder Kalirai, head of research in Sydney at State Street Corp.. ``The Fed will cut interest rates and the U.S. rate advantage will erode, weighing on the dollar.''

The dollar fell to 118.74 yen as of 11:57 a.m. in Tokyo compared with 119.01 at the close of trading in New York yesterday. It also dropped to $1.3239 per euro from $1.3174. The U.S. currency will slide to $1.35 in the next three to six months, Kalirai forecast.

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http://www.bloomberg.com/apps/news?pid=20601087&sid=aewZ.LC.8SDw&refer=home

[Warpy]

1. Cutting interest rates won't do a fucking thing

since they're still at relatively low levels.

You have to raise wages at the bottom and raise taxes at the top.

That is the only plan that will work.

[JDPriestly]

2. Right, and wages will rise soon.

[TheWatcher]

11. No, They Won't.

[Selatius]

4. Unfortunately, GWB will stop any notion of taxation of the rich.

A good economic policy combines not only pro-growth measures but also some income redistribution. Corporatists likes the former but vehemently oppose the latter, and they would spend money on Capitol Hill to ensure their way is heard first above all others.

[DBoon]

13. as Keynes said about the great depression

"you can't push a string"

[Strelnikov_]

3. Will The Chinese/EuroUnion/Japanese Loan Us The Money

at lower rates to support this strategy?

[Up2Late]

5. Anyone know where I can buy some Euros here in Atlanta? I'm going to Germany...

...in about 10 days and it sounds like the Dollar is going to continue to lose value...

Also, how much would I need to buy to make the advanced purchase worth it?

[w4rma]

6. With this type of thing, if you've heard it on the mainstream news, it's usually already too late.

Imho, you shouldn't worry about it at this point. Also, after large drops there are usually small upticks at the end, from what I have seen. Maybe if you wait the ten days you'll catch the uptick.

[Eurobabe]

9. It's not going to fall that fast that you would need to buy now

for a vacation mid-month. It's just a slow slide. I'm coming Stateside in mid-January, and look forward to my 32% discount. Sorry to rub it in...blame Il Dunce for this one, him and his dumbass economic/FP advisors. Sad that all who didn't vote for this clod are still somehow impacted, everyday, in little ways.

[Yavin4]

12. Do You Have A WheelBarrow?

And a strong back? All those paper dollars do get heavy.

[barb162]

7. yeah job growth (from those tax cuts )

is really moving along. Bush promised 300,000+ new jobs A MONTH a few years back
:sarcasm:

[Quantess]

14. But then they act as though they had been expecting a exaggeratedly HUGE number of job losses,

so then they can claim that "there were fewer lost jobs than was forecast".

[area51]

8. The economy

The economy's been slowing for the past 6 years. Most people aren't doing as well as they did 6 years ago. Republinazis crater the economy every time they get into power.

[Vinca]

10. U. S. factory?? Where???? nt

[NMDemDist2]

15. ding ding ding, we have a winner folks! n/t

[rman]

16. In China;

12 hrs/day, 6 days/wk, 14ct/hr

We're supposed to 'compete' with that.

[swag]

17. ADP Employer Services Says U.S. Lost 40,000 Jobs (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=atLoHLL_nYf8&refer=home


By Joe Richter

Jan. 3 (Bloomberg) -- Companies in the U.S. unexpectedly shed 40,000 jobs in December, the first decline since April 2003, a private report based on payroll data showed today.

The decrease followed a gain of 158,000 in November, according to an ADP Employer Services report that's based on data from 307,000 businesses with more than 14 million workers on payrolls. Economists had forecast ADP to report a 120,000 gain in private employment for the month.

The figures may prompt economists to lower their payroll estimates for the Labor Department's December jobs report in two days. An economy that grew in the third quarter at the slowest pace of 2006 may be making businesses reluctant to add workers, reducing the odds that consumer spending will accelerate soon, economists said.

``This is certainly an eye-opener,'' said Douglas Porter, deputy chief economist at BMO Capital Markets in Toronto. ``If employment is beginning to weaken, that would knock a leg out of the economy. This raises the stakes for Friday.''


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