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11/11/2007 - Credit concerns and write-downs pummel stocks and risky assets

Posted by FOREX.com's Weekly Strategy in November 9th 2007  
* Credit concerns and write-downs pummel stocks and risky assets
* Signs of a USD recovery are building
* Eurozone finance ministers meet Monday/Tuesday
* Heavy data schedule all around next week

The USD sank to new lows in its current downtrend against most major currencies, but by the end of the week, it was on the rebound against all but the EUR and JPY. Notably, however, it was not a US dollar-centric rebound, but rather a messy unwinding of risky asset trades, fueled by further write-downs (and rumors of still more losses and write-downs) of MBS (mortgage-backed securities) debt held by banks. The exodus from risky trades saw stocks plummet, JPY-crosses plunge, gold rejected from just below $850/oz, and commodities retreat from new highs.  Full text »

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Filed under: Weekly Strategy