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Dollar Falls for Second Day as U.S. Markets Not Revived by Rescue Plan

October 8, 2008 (Last updated on September 12, 2018) by

EUR/USD currency pair is growing for the second day in a row today after the Federal Reserve and the major central banks cut the interest rates to provide additional help to the tumbling markets. Fed cut the interest rate from 2% to 1.5%, Bank of England — from 5% to 4.5%, European Central Bank — from 4.25% to 3.75%, Bank of Canada — from 3% to 2.5% and Swiss National Bank — from 2.75% to 2.50%. This didn’t influence dollar much — it continued to fall despite some positive fundamentals reports from U.S. today. EUR/USD is currently trading near 1.3652 level above the opening value of 1.3621.

Pending home sales index rose by 7.4% in August after 2.7% drop in July. It’s good growth for the national realty sector because the average forecast was at 1.1% fall for August.

Crude oil inventories added 8.1 million barrels last week following 4.3 million barrels gain a week before. The last two weekly increases pushed crude oil inventories to the upper half of the average range for this time of year.

3 Responses to “Dollar Falls for Second Day as U.S. Markets Not Revived by Rescue Plan”

  1. rurzag

    In my opinion USD will rise until the end of the year, maybe even for the first half of 2009 and after that it will devalue fast. We will see EUR rising and probably taking over dollars role as worlds reserve currency.

    Great forex resources on the blog. congratulations!


  2. John Philips

    The volatility in the markets has been great for me. But the stress is unreal. I’m currently not sure if its luck the past month or a validation of my past strategies. Can anyone else comment on their recent record?


  3. Michael Coleman Jr

    I agree with Rurzag about the dollar rising through at least the end of the year.

    The fall of the dollar could be the thing to really watch. I do have a little concern with that. There is a lot of talk (online at least) about the Amero.
    If this claim is actually true I really wonder how this will affect the currency markets.


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