Excerpt from: Forex Analysis
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| October 07, 2008 | | U.S. dollar down in currency trading | A Fed rate cut is expected in the near future.
Whether this cut will come as part of a global effort to increase
liquidity, or whether it is something the U.S. does on its own, is yet
to be seen. However, even with the recent move to buy "commercial
paper" and the $700 billion Wall Street bailout, the credit market
isn't moving. And it may be that a lower rate can kick-start the credit
market again.
But because lower interest rates often accompany a drop on the FX market, it is not really a surprise that the U.S. dollar is struggling right now in currency trading. | Topic Tags: commercial paper, currency trading, Fed rate cut, FX market, U.S. dollar, U.S. dollar currency trading, Wall Street bailout | |
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