The Euro and British Pound rose as forex traders saw confidence rebound following the unveiling of a coordinated financial markets rescue plan at the weekend?s G7 summit. A meaningful rebound in risk appetite will likely see the US Dollar come under continued selling pressure, though interest rate expectations continue to favor the greenback in the longer term.
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Identifying Trades with DailyFX 10.13.08 (Daily FX)
Forex traders have found that the global financial crisis has served to benefit those bullish the US dollar and Japanese yen, but will this trend continue over the next week?
Mon, 13th of October, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD continued it’s bearish momentum on Friday. The pair bottomed at 1.3258 but corrected higher, closed at 1.3399
Economic data scheduled for release in European trading hours on Monday, October 12, 2008:
Chaotic financial markets may react positively this week to a long-sought coordinated response by world leaders to a financial tsunami threatening to wipe out the global banking sector.
Nations from Europe to Australia rushed out plans on Sunday to shore up their banks, trying to halt a markets crash with pledges to back lending, buy stakes in financial institutions and take other emergency steps.
Forex traders sold US Dollars and Japanese Yen following this weekend?s G7 summit in Washington, DC as the finance ministers from the world?s top economies surprised the skeptics, coming together to issue a joint 5-point plan aimed at freeing up the gridlock in global credit markets.
Investors will be seeing this week whether policymakers found a way to pull markets away from a deeper collapse as global capital markets faced complete freeze-up.
