Daily Market Outlook

Tue, Jul 15 2008, 02:59 GMT
by AceTrader Team

AceTrader


AceTrader 1-wk TRIAL

www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
**********************************************************
Market Review -14/07/2008 21:41 GMT

Dollar rebounds on U.S. emergency plan for Fannie Mae and Feddie Mac

The greenback rebounded from near a record low against the euro on Monday after U.S. Treasury Secretary Henry Paulson announced that government may buy stakes in mortgage finance giants Fannie Mae and Freddie Mac if needed, to restore financial markets' confidence.  
  
The emergency plan helped calm market concerns about the health of the U.S. financial and housing sectors, since the two companies as mentioned above fund half of all U.S. mortgages. By late afternoon, though, the dollar had pared some of its gains, with the euro rising back above 1.5900. The euro was down 0.2 percent and closed at 1.5910 versus the dollar after slipping to an intra-day low at 1.5841. Against the Japanese yen, the dollar fell from Monday’s high at 106.81 to 106.10, while euro also retreated from a fresh record high at 169.69 to 168.79.   
  
Elsewhere, cable extended marginally to 1.9963 in U.S. session before easing and closed at 1.9940 and the Australian dollar rose to a 26-year high at 0.7936 on speculation that the domestic economy will withstand losses among U.S. financial institutions.  
  
Investors are watching to see how the latest developments affect Fed Chairman Ben Bernanke's views on monetary policy and the economic outlook when he testifies before the Senate Banking Committee on Tuesday.   
  
Money markets have scaled back their expectations for monetary policy tightening from the Fed and now don't expect it to start hiking rates until the final months of the year. The Dollar Index traded on ICE futures in New York, which tracks the greenback against the currencies of six U.S. trading partners, fell for a fourth day, dropping to 71.915.  
  
On Tuesday, economic data releases include New Zealand CPI, Bank of Japan rate decision and its economic report, U.K. BRC retail sales, RICS house balance, CPI and RPI data, German and eurozone Zew survey, U.S. PPI data, retail sales and business inventories and Bank of Canada rate decision. Federal Reserve Chairman Ben Bernanke will testify before the Senate Banking Committee at 14:00GMT on Tuesday.

**********************************************************

Published on  Tue, Jul 15 2008, 03:53 GMT

Archive

Trendsetter Financial Markets Ltd.  | Room 1201, 12/F., Harcourt House, 39 Gloucester Road, Wanchai
http://www.AceTraderFX.com | cs@acetrader.com

Legal disclaimer and risk disclosure

Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.

Interested in forex trading? forex brokerage firms!


Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
GFT
Contact the broker/FDM
Open a demo account
Alpari (US), LLC
Contact the broker/FDM
Open a demo account		Interactive Brokers LLC
Contact the broker/FDM
Open a demo account		MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]


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.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: 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 invest in 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.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.