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 - 23/02/2009 21:55 GMT
The single currency falls against the dollar after ECB’s Trichet and Fitch comments
The single currency reversed early gains against the dollar on Monday after European Central Bank President Jean-Claude Trichet said the euro-zone financial system is under severe strain and Fitch voiced concern about Austria's AAA rating. The euro touched its 12-day high of 1.2992 versus the dollar in European morning but was last trading down one percent at around 1.2700.
On the other hand, the greenback surged to as high as 94.95 against the Japanese yen as investors expected the U.S. government could take a stake of up to 40 percent in U.S. lender Citigroup by converting preferred stock into common shares and inject more funds into troubled domestic banks. This eased fears the government will completely nationalize large U.S. banks while bolstering optimism it will stay more proactive than other nations in stemming a recession. In late afternoon trading in New York, the dollar was up 1.3 percent at 94.33 yen.
The British pound gained for a third day against the dollar as there is a rumour that Royal Bank of Scotland Group Plc is planning to segregate toxic assets in a new unit and cut costs by more than 1 billion pounds. Sterling rose to as much as 1.4663 (the highest since Feb 10) versus the dollar and 1.2 percent to 0.8738 against the euro.
In other currencies, the New Zealand dollar and Australian dollar also reversed their early gain versus the dollar and traded lower in New York afternoon, both down by 0.9 percent at 0.5067 and 0.6403 respectively.
The U.S. stock markets tumbled on Monday on fading confidence that the U.S. government will be able to stabilize the financial system. The Dow Jones industrial average index closed at the lowest level in 12 year, down 3 percent or 250 points to 7,114, while the Standard & Poors’s 500 index and the Nasdaq Composite Index also fell by more than 3 percent, to 743 and 1,387 respectively.
Tuesday will see the release of Japan BOJ minutes and CSPI, German Ifo index and WPI, eurozone industrial production and current account, U.K. nationwide house prices and CBI distribution trade, and U.S. consumer house price index. Federal Reserve Chairman Ben S. Bernanke will testify before the Senate Banking, Housing and Urban Affairs Committee as part of his semiannual monetary policy report to Congress at 15:00GMT.
The single currency falls against the dollar after ECB’s Trichet and Fitch comments
The single currency reversed early gains against the dollar on Monday after European Central Bank President Jean-Claude Trichet said the euro-zone financial system is under severe strain and Fitch voiced concern about Austria's AAA rating. The euro touched its 12-day high of 1.2992 versus the dollar in European morning but was last trading down one percent at around 1.2700.
On the other hand, the greenback surged to as high as 94.95 against the Japanese yen as investors expected the U.S. government could take a stake of up to 40 percent in U.S. lender Citigroup by converting preferred stock into common shares and inject more funds into troubled domestic banks. This eased fears the government will completely nationalize large U.S. banks while bolstering optimism it will stay more proactive than other nations in stemming a recession. In late afternoon trading in New York, the dollar was up 1.3 percent at 94.33 yen.
The British pound gained for a third day against the dollar as there is a rumour that Royal Bank of Scotland Group Plc is planning to segregate toxic assets in a new unit and cut costs by more than 1 billion pounds. Sterling rose to as much as 1.4663 (the highest since Feb 10) versus the dollar and 1.2 percent to 0.8738 against the euro.
In other currencies, the New Zealand dollar and Australian dollar also reversed their early gain versus the dollar and traded lower in New York afternoon, both down by 0.9 percent at 0.5067 and 0.6403 respectively.
The U.S. stock markets tumbled on Monday on fading confidence that the U.S. government will be able to stabilize the financial system. The Dow Jones industrial average index closed at the lowest level in 12 year, down 3 percent or 250 points to 7,114, while the Standard & Poors’s 500 index and the Nasdaq Composite Index also fell by more than 3 percent, to 743 and 1,387 respectively.
Tuesday will see the release of Japan BOJ minutes and CSPI, German Ifo index and WPI, eurozone industrial production and current account, U.K. nationwide house prices and CBI distribution trade, and U.S. consumer house price index. Federal Reserve Chairman Ben S. Bernanke will testify before the Senate Banking, Housing and Urban Affairs Committee as part of his semiannual monetary policy report to Congress at 15:00GMT.
