EUR/USDUSD/JPYGBP/USDUSD/CHF
1.475112.32.0741.1425
Resistance1.4725111.752.0621.134
1.4645111.252.05051.13
1.46110.252.0421.12
Support1.454109.72.03651.1175
1.4521092.03351.113

The fed made the biggest temporary daily infusion to the banking system in six years. This act emphasized the problematic situation the credit market is in. the respond came to a rise in over night lending rates both in the US and Europe. The stock markets fell on uncertainty over condition in the credit crunch.

Financial conditions continue to tighten, as investors shy away from risk as the credit and mortgage crisis continues and the economy slows. In one of the latest developments, General Electric Co said its short-term bond fund ran into trouble amid losses on mortgage and asset-backed securities and that all its outside investors have liquidated their holdings. Barclays Plc, Britain's third-biggest bank, unveiled a 1.3 billion pound ($2.7 billion) write-down on its exposure to credit market problems. Its shares fell about 1 percent in Europe.

The yen gain against the majors as carry trade continues to unwind. Investors' growing aversion to risk also drove the dollar down against the yen as fears about the credit crunch's impact and the falling equity markets led investors to pare back on profitable but extended trades.

The dollar gained to 1.4605 against the Euro when the dollar index rose to 76.035 against a basket of currencies. The Canadian dollar continued to lose ground against the US dollar weakening to 0.9863 influenced also by a drop in the oil price.

The dollar traded around the levels of 1.4620 against the Euro, 110.40 against the Yen and 2.0445 vs. the sterling at 21:21 (GMT).

Pie Chart


Today's Economic Events

DateEventCountryPeriodPrevious ForecastSignificanceActual
08:15 GMTRetail Sales m/mCHFSep3.80%33.00%
12:30 GMTKansas City Fed President Hoenig SpeaksUSD1
14:15 GMTCapacity useUSDOct82.10%82.00%2
16:15 GMTIndustrial Production m/mUSDOct0.10%0.10%2