USD Interest Rate Cut
The NBER revealed that the US economy has been in a recession since December 2007, leading to the collapse of major US stock bourses. The Dow Jones sank by 7.7%, and both the Nasdaq and S&P 500 plunging by nearly 9%. The selling accelerated following comments from both Fed Chairman Bernanke and US Treasury Secretary Paulson.
In the Forex market, JPY was the biggest gainer at the start of the week. JPY against GBP plunged to 138.60 and EURUSD was at 117.30. The USD also edged higher against the majors. GBPUSD was at 1.4879, USDJPY at 93.16 and EURUSD at 1.2612.
With the Non Farm Payrolls on Friday, you can expect further melting of the USD. The Non Farm Payrolls report is expected to be the worst for the year to date. The US economy will remain weak and Fed will have to take necessary actions so as not to deteriorate further. There could be an interest rate cut.
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Thanks.
It’s been quite sometime since I last visited this blog. Look like you have another great post entry again. lol. When are you going to stop posting good stuffs?