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Market uncertainty as U.S bailout talks stall
Fri, Sep 26 2008, 10:44 GMT
by Benny Menashe
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.4825 | 107.45 | 1.871 | 1.106 | |
| Resistance | 1.4765 | 107.2 | 1.867 | 1.1 |
| 1.4735 | 107 | 1.8525 | 1.0975 | |
| 1.454 | 105.25 | 1.831 | 1.0805 | |
| Support | 1.444 | 105.15 | 1.828 | 1.0745 |
| 1.4425 | 104 | 1.8265 | 1.07 |
The yen was up by more than 1% against the dollar on Friday after a meeting over the $700 billion U.S financial bailout package ended in stalemate. Adding to the unrest, Washington Mutual, the largest savings and loan bank in the States, was closed and its assets sold. JP Morgan and Chase stepped in to buy the assets of the biggest bank to fail in U.S history. Asian and European stock markets fell as investors bought the Japanese currency, seen as a safe haven. The heightened uncertainty in the U.S has seen speculators unwind their carry trades. Carry trades typically involve the purchasing of high yielding assets funded in Japanese yen. The USD/JPY was trading at 105.44 at 10.30am GMT
In London, Sterling was relatively unchanged against both the dollar and the euro as Europe’s largest bank, HSBC holdings Plc, announced they were to axe 1100 jobs from their global banking and markets division. The pound is currency on a winning streak against the greenback, the longest since May, as uncertainty continued to persist in the U.S over its rescue package for banks. U.K Prime Minister Gordon Brown is set to meet President George W. Bush today to discuss the economy. GBP/USD was trading at 1.8380 at 10.30am GMT
Today investors will be taking note of important data releases in the States. Final U.S second quarter GDP data will be released at 12.30am GMT where the expectation is that growth will remain unchanged at 1.2%. At the same time, the University of Michigan will be releasing their monthly consumer confidence survey. The forecast is that current market turmoil has impacted sentiment.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance | Actual |
| 12:30 | GDP q/q | USD | Quarterly | 3.30% | 3.30% | 2 | |
| 12:30 | Final GDP Price Index q/q | USD | Quarterly | 1.20% | 1.20% | 2 | |
| 6:00 | Import Price Index m/m | EUR | Aug | 0.60% | -1.00% | 2 | -0.80% |
Published on Fri, Sep 26 2008, 11:08 GMT
Archive
- US Dollar Shows Stability as Economy worries Grow
Published On Fri, Nov 21 2008, 10:29 GMT - Worries over global recession, credit markets remain bearish, Yen rises
Published On Thu, Nov 20 2008, 11:04 GMT - Japanese yen accelerate vs. the dollar, risk aversion
Published On Wed, Nov 19 2008, 10:47 GMT - Risk and Carry Guiding the Dollar
Published On Tue, Nov 18 2008, 10:01 GMT - Japan is officially in Recession; Risk Aversion Seen Intact
Published On Mon, Nov 17 2008, 12:05 GMT
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