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Starting the day

Posted on October 21, 2008 at 8:56 in Starting the day by Valeria Bednarik

October 21th.  Hello everybody hope you are fine. Greenbank is back, leading the market with Japanese yen, after FED´s President, Ben Bernanke said they are ready to do what it takes to limit any further slowdown; meaning sentiment ruling market again, as investors understood the U.S. may recover from the global economic slowdown quicker than other countries. Meanwhile Europe continues tumbling: The U.K house prices continue to plummet and economic data keeps worsening month over month, while in Europe banks continue facing defaults; sentiment has turned dollar  positive, and despite the rise in stocks yesterday, high yieldings were set aside: investors seems ready to give dollar another chance.

A side note for commodity currencies: gold and oil are loosing ground fast quoting these days, are critical support levels, pushing small dollars, like Aud and Cad down against greenback: if gold manages to break under $ 770.00 and Oil under $ 65,00 a barrel, we will see further falls in both currencies and a more important American dollar recovery.

Today we have no interesting news to take care of, yet you can check them in Fxstreet.com calendar, following this link:

http://www.fxstreet.com/fundamental/economic-calendar/

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