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Market Review - 25/11/2008 22:43 GMT
Fed announces facility to boost consumer lending and dollar weakens broadly on easing concerns about the financial crisis
The single currency rose against the dollar from 1.2804 to 1.3081 on Tuesday as Fed announced a facility to boost consumer lending, easing concerns about the financial crisis and diminishing demand for the dollar as a safe haven. The greenback fell sharply against the Japanese yen from 97.44 to 94.94 while the British pound rallied from 1.4982 to 1.5535.
The U.S. Treasury and Federal Reserve on Tuesday announced further measures worth about $800 billion to support the debt and mortgage backed securities issued by mortgage giants Fannie Mae and Freddie Mac, as well as measures to support asset-backed consumer lending.
Senator Charles Schumer of New York said they plan to put an economic stimulus package as large as $700 billion before President-elect Barack Obama when he starts on his first day in office. Obama has called for a sizeable enough plan to jolt the economy, saying the U.S. faces the loss of ‘millions of jobs’ unless immediate steps are taken to stimulate growth and rescue the nation's automakers.
Investors sold the greenback after a report showed the U.S. economy shrank by 0.5% in the third quarter, the sharpest fall since the same period in 2001. The decline in U.S. house prices also accelerated, adding credence to the view that the Federal Reserve will cut interest rates further.
Renowned investor Jim Rogers said the U.S. dollar will be ‘devalued’ as policy makers seek to weaken it, undermining the greenback's role as an international reserve currency. Rogers indicated that he is buying the Japanese yen and said he plans to cut the remainder of his dollar holdings during this period.
Wednesday will see the release of U.K. GDP, U.S. personal spending, personal income, core PCE, durable goods, jobless claims, Chicago PMI, University of Michigan survey, new home sales and Midwest manufacturing.
Fed announces facility to boost consumer lending and dollar weakens broadly on easing concerns about the financial crisis
The single currency rose against the dollar from 1.2804 to 1.3081 on Tuesday as Fed announced a facility to boost consumer lending, easing concerns about the financial crisis and diminishing demand for the dollar as a safe haven. The greenback fell sharply against the Japanese yen from 97.44 to 94.94 while the British pound rallied from 1.4982 to 1.5535.
The U.S. Treasury and Federal Reserve on Tuesday announced further measures worth about $800 billion to support the debt and mortgage backed securities issued by mortgage giants Fannie Mae and Freddie Mac, as well as measures to support asset-backed consumer lending.
Senator Charles Schumer of New York said they plan to put an economic stimulus package as large as $700 billion before President-elect Barack Obama when he starts on his first day in office. Obama has called for a sizeable enough plan to jolt the economy, saying the U.S. faces the loss of ‘millions of jobs’ unless immediate steps are taken to stimulate growth and rescue the nation's automakers.
Investors sold the greenback after a report showed the U.S. economy shrank by 0.5% in the third quarter, the sharpest fall since the same period in 2001. The decline in U.S. house prices also accelerated, adding credence to the view that the Federal Reserve will cut interest rates further.
Renowned investor Jim Rogers said the U.S. dollar will be ‘devalued’ as policy makers seek to weaken it, undermining the greenback's role as an international reserve currency. Rogers indicated that he is buying the Japanese yen and said he plans to cut the remainder of his dollar holdings during this period.
Wednesday will see the release of U.K. GDP, U.S. personal spending, personal income, core PCE, durable goods, jobless claims, Chicago PMI, University of Michigan survey, new home sales and Midwest manufacturing.
