The dollar encountered unprecedented lack of liquidity last week (as only cable was affected in 1992/1993 and dollar/yen in 1998) as FX took a secondary position behind classic assets. The government didn?t save the day, but the year and probably the decade with an unprecedented operation to remove toxic assets from banks? books and allow [...]
President Bush held a press conference on Friday morning to reassure the public and markets that his administration and lawmakers will complete a rescue plan for the nation’s battered financial markets despite disagreements between congressional Republicans and Democrats over the $700 billion package. Washington Mutual became the largest bank to…
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It will be another long weekend for the US Treasury Secretary and the heavy hitters in Washington. September has certainly been a sleepless month for Paulson, as Fannie and Freddie was followed by Lehman Brothers and AIG and then the initial $700B proposal. This weekend, he will be in discussions…
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The Usd was mostly flat in the US trading session as the majority of the market anticipates the outcome of the Fed Bailout proposal, as this bill is delayed following party contentions. The EurUsd is marginally higher, up a little over 10 pips at the low range of 1.46, while…
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The dollar was mostly lower in light trading Friday after negotiations to push the Bush Administration’s $700 billon financial-rescue package through Congress stalled (but not stopped according to the parties). The US O2 GDP rose at a downwardly revised 2.8% annual rate and corporate profits fell. The yen advanced on…
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The index held steady as markets awaited word on the government’s bailout plan. The fall in oil helped the dollar against the euro, and the index got a boost against the yen when traders speculated an agreement on the bailout plan would be completed before the next Asian open. The…
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House republicans have revolted against their lame-duck president, and the Democrats are not going to pass a bill in support of President Bush without bi-partisan support. That means Mr. Paulson?s plan is highly unlikely to pass as written, although lawmakers on both sides of the aisle understand the urgency of…
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It appears that U.S. congressional officials have not completely agreed on the US$ 700 billion rescue package to transfer under-performing assets from banks’ balance sheets and this has limited the U.S. dollar’s upside. Most traders expect some semblance of a final deal will be in place by Monday.
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The US dollar fell against the yen and strengthened slightly against the euro as talks over the US government’s $700 billion bailout plan came to a stall and the biggest ever US bank failure. The FDIC took over Washington Mutual and sold the bank’s assets to JPMorgan Chase & Co….
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The moves made this week to hold the U.S. dollar valuations in place have been impressive to say the least, mainly due to it being hard to find many fundamental near-term reasons to be holding long-dollar trades out of desire; they are either hedges or reserve holdings it would seem….
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