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Market Review - 09/02/2009 22:56
Dollar falls broadly on expectation of the positive impact from the U.S. bank bailout plan
The greenback fell broadly on Monday on speculation that the U.S. bank bailout package will help revive not only the U.S. economy but also the global economy despite the delay in the announcement of the plan.
U.S. President Barack Obama is demanding a stimulus bill on his desk before Congress leaves for the Presidents’ Day holiday on February 16. A procedural vote on the Senate legislation is scheduled on Monday (U.S. time), with a final vote planned on Tuesday. Treasury Secretary Timothy Geithner will announce a financial-rescue plan on Tuesday to allow the administration to focus on getting Senate approval of the fiscal stimulus package. The $827 billion Senate measure must then be reconciled with an $819 billion plan the House approved on January 28.
The single currency rallied from 1.2874 to 1.3095 against the U.S. dollar on active cross buying in euro especially versus the Japanese yen and Swiss franc. Eur/jpy and eur/chf rose sharply from 117.10 to 120.04 and from 1.4990 to 1.5152 respectively. The British pound rose to a four-week high of 1.4986 after Barclays Plc, the third-biggest U.K. bank by assets, said second-half profit rose more than analysts estimated. The higher-yielding Australian and New Zealand dollars rose against the U.S. currency from 0.6628 to 0.6852 and from 0.5240 to 0.5445 respectively on rising risk appetite.
Trading was relatively thin on Monday as investors are focusing on Congress, which was divided along party lines on the economic stimulus and bank bailout plans. Tuesday will see the release of U.K. BRC retail sales, RICS house prices and trade balance, Japan’s consumer confidence and U.S. wholesale inventories
Dollar falls broadly on expectation of the positive impact from the U.S. bank bailout plan
The greenback fell broadly on Monday on speculation that the U.S. bank bailout package will help revive not only the U.S. economy but also the global economy despite the delay in the announcement of the plan.
U.S. President Barack Obama is demanding a stimulus bill on his desk before Congress leaves for the Presidents’ Day holiday on February 16. A procedural vote on the Senate legislation is scheduled on Monday (U.S. time), with a final vote planned on Tuesday. Treasury Secretary Timothy Geithner will announce a financial-rescue plan on Tuesday to allow the administration to focus on getting Senate approval of the fiscal stimulus package. The $827 billion Senate measure must then be reconciled with an $819 billion plan the House approved on January 28.
The single currency rallied from 1.2874 to 1.3095 against the U.S. dollar on active cross buying in euro especially versus the Japanese yen and Swiss franc. Eur/jpy and eur/chf rose sharply from 117.10 to 120.04 and from 1.4990 to 1.5152 respectively. The British pound rose to a four-week high of 1.4986 after Barclays Plc, the third-biggest U.K. bank by assets, said second-half profit rose more than analysts estimated. The higher-yielding Australian and New Zealand dollars rose against the U.S. currency from 0.6628 to 0.6852 and from 0.5240 to 0.5445 respectively on rising risk appetite.
Trading was relatively thin on Monday as investors are focusing on Congress, which was divided along party lines on the economic stimulus and bank bailout plans. Tuesday will see the release of U.K. BRC retail sales, RICS house prices and trade balance, Japan’s consumer confidence and U.S. wholesale inventories
