Excerpt from: Futures and Commodity News
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| August 31, 2007 | | Hope for a stop to the U.S. dollar decline? | Spread betting, contracts for differences and spot forex trading have been shorting the dollar lately, due mainly to the fallout from the credit market crisis. However, it's becoming serious enough that even President Bush is becoming involved. He is expected to announce new programs to help relieve the market. Forbes reports how this is affecting the U.S. dollar on the spot FX market:
The market is decidedly bearish about the dollar ahead of
Bernanke's speech, although much of this sentiment is based on
assumptions that the subprime fallout will be a big drag on the economy, GFT senior financial analyst Ian Copsey said.
'This is very likely over time, but with a slight lag in reaction we
may just see some more positive numbers come through initially, and
this may well stall the dollar's slide seen this week,' Copsey said. | | |
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