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Dollar trading low as Treasury bailout plan hits confidence

Tue, Sep 23 2008, 10:49 GMT
by Benny Menashe

Finotec Group Inc.


EUR/USDUSD/JPYGBP/USDUSD/CHF
1.4961081.89551.106
Resistance1.491107.451.87951.0925
1.4865106.151.8641.09
1.4625105.151.84751.07
Support1.454104.551.8441.061
1.4441041.83851.0605

The greenback traded very low against the euro on concerns that the U.S. government proposal to buy $700 billion of troubled assets will hit confidence in the nation's finances. The greenback traded low versus the major currencies as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. Also weighing on the dollar is the U.S. report this week that may show home sales fell, adding to the case for the Federal Reserve to cut interest rates. The EUR/USD is currently trading at $1.4750 as of 7:51am, GMT.

The pound was little changed against the dollar before an industry report that will show whether U.K. mortgage approvals picked up in August. House prices slid a fourth month in September, Rightmove Plc, Britain's most-used property Web site, said yesterday. The average asking price for a home fell 1 percent from August. Banks granted 22,448 loans for house purchase in July, down 65 percent from a year earlier, the British Bankers' Association said Aug. 26. ``The numbers are likely to confirm mortgage financing has dried up in the U.K.,'' said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi Ltd. ``The economic fundamentals are still extremely negative for the pound.'' The GBP/USD is currently trading at $1.8525 as of 8:12am, GMT.

pie

Today's Economic Events

Time Event Currency Period Previous Forecast Significance Actual
23:50Manufacturing PMIJPYQuarterly-15.1-172
14:00Fed Chairman Bernanke TestifiesUSD4
14:00Richmond Manufacturing IndexUSDSep-16-122
11:00Core CPICADAug0.10%0.10%3
11:00CPI m/mCADAug0.30%-0.20%2
9:00Industrial New Orders m/mEURJul-0.30%-0.70%21.00%
8:30BBA Mortgage ApprovalsGBP22.4K20.5K221.1K
8:00Manufacturing PMIEURSep47.647.2245.3
8:00Services PMIEURSep48.548248.2
7:30Manufacturing PMIEURSep49.749.2248.1
7:30Services PMIEURSep51.450.6249.3
7:00Manufacturing PMIUSDSep45.846.1243.6
7:00Services PMIEURSep4847.7250.4
6:45Consumer Spending m/mEURJul0.40%0.00%20.40%
6:45Consumer Spending m/mEURAug0.40%0.30%2-0.30%


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http://www.finotec.com/ | support@finotec.com

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