• Home ::
• Technical ::
• Market View ::
• Daily Market Outlook

• Send
• Print
• Add To
• Rss

Daily Market Outlook

Tue, Oct 14 2008, 01:26 GMT
by AceTrader Team

AceTrader

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

Market Review -   13/10/2008 17:56 GMT

Euro rallies as European leaders agree to guarantee bank borrowing

The single currency rallied against the greenback and the Japanese yen to 1.3685 and 138.80 respectively on Monday as European leaders agreed to guarantee bank borrowing. European policy makers pledged to guarantee until the end of 2009 bank-debt issues with maturities of up to five years. France, Germany, Spain and Austria committed 1.1 trillion euros to guarantee bank loans and take stakes in lenders after the G-7 meeting over the weekend, while Federal Reserve announced unlimited dollar auctions.  
  
The greenback rose against the Japanese yen from 99.56 to 102.20 due to the rally in global stock markets, prompting investors to sell the Japanese currency to buy high-yielding assets. Dow posted its best gain yesterday and closed 936 points higher. Aussie and sterling rallied from 65.22 to 71.43 and from 168.77 to 177.67 against the Japanese yen respectively. The British pound strengthened from 1.6924 to 1.7442 as the U.K. government said it will invest 37 billion pounds in Royal Bank of Scotland Group Plc, HBOS Plc, and Lloyds TSB Group.   
  
The Australian dollar gained against U.S. currency from 0.6547 to 0.7001 after the government guaranteed all bank deposits for three years while the U.S. currency fell against the Canadian dollar from 1.1795 to 1.1470 after last week’s 7.7% drop, its biggest weekly decline in 37 years. Canadian Finance Minister Jim Flaherty said the government will shore up the nation's banks by taking on some of their mortgages.  
  
Tuesday will see the release of U.K. RICS house prices and BRC retail sales, Japan’s domestic CGPI, consumer confidence, U.K. CPI and RPI, German ZEW index, eurozone ZEW survey and industrial production.

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

Published on  Tue, Oct 14 2008, 01:57 GMT