Whether the Reserve Bank of Australia wished to keep its powder dry or whether it simply did not want to ease at back-to-back meetings, the impact was to drive higher the value of the Aussie dollar Tuesday and push down uncertainty in the forex options market.
The double-digit-dollar decline in the value of Lumber Liquidators' shares has wiped more than 20% off the value of the company in the wake of Sunday’s 60 Minutes documentary alleging the U.S. retailer of hardwood flooring had installed Chinese-made laminate flooring containing formaldehyde at unacceptably high levels.
Yesterday marked the third session following Friday’s employment report big sell-off. The decline in the Eurodollar March 2016 contract was a 2.7 std dev move, the likes of which had not been seen since January of 2011. There was no meaningful recovery over the three sessions following that decline.