FXstreet.com

Daily FX Commentary

This report has been deactivated

0

0

Daily FX Commentary

Tue, Sep 30 2008, 10:41 GMT

Investica Ltd


Technical dollar support offers protection

Despite expectations of congressional support for the US deal, there were renewed stresses on Monday as liquidity issues continued. Global central banks were forced to respond with a further massive injection of liquidity into markets. The banks announced that the dollar liquidity swaps would be increased to US$620bn from US$290bn previously.

The economic data was overshadowed by political negotiations and the markets were jolted severely again later in US trading as the House of Representatives rejected the US rescue plan. Wall Street weakened sharply with daily losses of close to 7% for the Dow Jones index while there was further intense stresses in credit markets. There will be increased fears over the economy and strong expectations that the Federal Reserve will be forced to cut interest rates.

Confidence in the Euro-zone will continue to be damaged by banking-sector difficulties, especially with economic confidence in the region also continuing to weaken. There will also be speculation that the ECB will bring forward an interest rate cut, especially with business confidence also continuing to deteriorate.

The Euro recovered sharply to highs above 1.4550 in New York before weakening back to 1.4330 on Monday in very nervous trading.


Archive

Investica Ltd http://www.investica.co.uk | tim.clayton@investica.co.uk

Legal disclaimer and risk disclosure

Investica's market analysis is not investment advice and must not be taken as recommending particular market positions. Investica can take no responsibility for any actions taken by investors.

Related reports

Weekly Focus - Is it strong enough? by Danske Bank A/S
Fri, Jul 3 2009, 15:00 GMT

Your Summer Housing Market Update by Money and Markets
Fri, Jul 3 2009, 12:39 GMT

Asia Market Update - Most Asian equities indices track the US session declines as nonfarm payrolls data disappoints by TradeTheNews.com
Fri, Jul 3 2009, 11:55 GMT

KBC Flash - ECB to hold rates steady for some time by KBC Bank
Fri, Jul 3 2009, 10:38 GMT

Daily Forex News - Forex - Risky Assets take a hit on U.S. Payrolls by ACM - Advanced Currency Markets
Fri, Jul 3 2009, 10:35 GMT

usd, ecb, centralbanks, us, wallstreet, eurozona, dowjones

View All

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
Alpari (UK) Limited
Contact the broker/FDM
Open a demo account
Interbank FX, LLC
Contact the broker/FDM
Open a demo account
Capital Market Services, L.L.C.
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.