Demand for the dollar continues to soar as the Greenback fights back after having started the week on a low. While Fed Chairman Bernanke assured the Senate Banking Committee on Tuesday that no banks would be nationalized this still is a concern for investors globally ? having to nationalize a major U.S bank would be yet another nail in the coffin for the U.S banking sector and it?s deviant ways…. (more…)
The greenback continues to hold up despite the release of the biggest deficit in over six decades. The 2009 budget highlights a deficit of 12.3% of GDP and includes spending for the financial sector and a $630bn reserve fund to reform the US healthcare system. However, the market took these huge numbers in stride and the reaction in Usd and Treasury suggests there are no real worries over the… (more…)
Monday saw no let up in volatility as market illiquidity continued.
EUR/USD reversed all the gains made in Asia and much of those made on Friday after option related selling ahead of 1.3000 barriers proved to be insurmountable. With Asian central banks and speculative accounts selling into a weak market, the Euro was on extremely thin ice.
Pressure was also… (more…)
The speeches by President Obama and Fed Secretary Bernanke aimed to reassure markets got mixed reactions today as equities are up but the dollar posts gains only against the distressed Yen. The dollar was weaker across the board as risk sentiment improved after Bernanke assured the markets that jeopardizing the current public-private franchise in the financial markets by nationalizing the… (more…)