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The U.S. Senate agrees to vote on a $700 billion bail−out package tonight
Wed, Oct 1 2008, 08:13 GMT
by Varengold Bank Research Team
Varengold Wertpapierhandelsbank AG
Good morning from wonderful Hamburg. The U.S. Stocks and Indices recovered back from record lows on hopes for a second try to bail out the financial crisis. We hope for good news and wish you a successful trading start to the new and last quarter of this year.
Market review
The U.S. Senate agrees to vote on a $700 billion bail-out package tonight, that will include a sharp increase in the amount of bank deposits insured by the FDIC (Federal Deposit Insurance Corporation) senate leaders say. The House of Republican and Democratic leaders also hope for a revised decision would pass in that chamber. On this news U.S. stocks added to gains after record lows from yesterday as investors were shocked due to the bail-out rejection. However the EUR/USD is down at 1.41 after the opening at 1.44 the day before. The USD/JPY dips 0.2% at 105.84 from the 106.54 level earlier, while the investors became nervous as the S&P futures fall and suggests a possible negative start of Wall Street shares later in the day, traders said.
The BOJ offers 800 bln JPY of funds on a same-day basis after the biggest 1-day injection in the post-quantitative easing period of 3 trln JPY the previous day. It keeps supplying cash to those market players needing it on the first day in the new quarter. Overall the market is calming down in Tokyo, with investor focus remaining on the fate of the U.S. bank bail-out package.
Overnight USD funding rates stayed steep in Asia trade while some traders saying that transactions were done at 6% as the start of a new financial quarter failed to relieve the big shortage of USD cash that has left many banks and funds scrambling.
EUR/AUD
After the break trough the 1.654 resistance level, the EUR/AUD has started to trade in a bullish trend channel. Last week the market was trading close to the lower trend line but it recovered back to the upper line again. If the market doesn’t break the lower trend line we could expect further bullish movements.
EUR/CAD
Since the beginning of August the EUR/CAD has been trading in a bearish trend channel with a support at 1.5 and a resistance level at 1.62. In the previous days the currency pair has traded close to the 1.5 level. If the market crosses this support level it could continue its bearish development.
Published on Wed, Oct 1 2008, 08:24 GMT
Archive
- The JPY gained against a basket of major currencies
Published On Mon, Dec 1 2008, 11:44 GMT - The USD headed for its biggest weekly decline in almost three years against the EUR
Published On Fri, Nov 28 2008, 09:09 GMT - The EUR/USD was back again above the 1.29 level
Published On Thu, Nov 27 2008, 09:08 GMT - The JPY has gained against the EUR
Published On Wed, Nov 26 2008, 08:37 GMT - Yesterday the EUR/USD rose 2.8 %
Published On Tue, Nov 25 2008, 09:49 GMT
Varengold Wertpapierhandelsbank AG
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This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational purposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.Related reports
Economics Weekly - Government borrowing to rise sharply by Lloyds TSB Financial Markets
Mon, Dec 1 2008, 12:42 GMT
FX Briefing - Fed pledges gigantic bailout programme by BHF-Bank
Mon, Dec 1 2008, 06:40 GMT
Daily FX Report - The USD headed for its biggest weekly decline in almost three years against the EUR by Varengold Wertpapierhandelsbank AG
Fri, Nov 28 2008, 09:09 GMT
Pairs to Range Trade - Clear Momentum And Technicals May Provide A Short-Term EURAUD Range Opportunity by FXCM
Thu, Nov 27 2008, 06:35 GMT
Daily Forex Overview by Dukascopy Swiss FX Group
Wed, Nov 26 2008, 08:45 GMT
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