Obama Plan Lacks Original Ideas
Market consensus was that the $2 trillion dollar rescue plan by the Obama administration addressed key areas needed to prop up the ailing banking industry but lacked original ideas and differed little from the policies of the Bush administration. The lack of original ideas signaled a return to risk aversion as Forex brokers sought out the safe havens of the dollar, Yen, and Swiss Franc.
Geithner’s Remarks Short on Substance
Treasury Secretary Geithner’s remarks were seen as short on substance and detail and disappointed many who had been waiting for specific details on the bailout plan. Adam Fazio of CIBC World Markets stated, “People were expecting the government to come up with details on how to fix things. And it doesn’t sound that more details about the plan are forthcoming, so I think there is more risk inherent in the market.”
BOE To Take Extraordinary Measures
The Pound fell further after a bank of England report suggested that extraordinary measures are needed including monetary easing. Forex opportunities were limited by the global flight to safety on currency exchanges. Market uncertainty remains about the fate of the $838 billion stimulus package passed by the US Senate on Tuesday. Both houses now have to haggle over details of the plan causing further delay and limiting Forex opportunities.
Markets Volatile
Markets remain volatile and Forex traders and investors took advantage of the Forex opportunities earlier in the week when risk aversion eased. Markets were waiting for both Bernanke and Geithner to outline and provide details of the US bank rescue and stimulus plans. The return to risk appetite during this short period provided many Forex opportunities for investors. Markets remain uncertain and the sooner the US congress acts, the better.
Market consensus was that the $2 trillion dollar rescue plan by the Obama administration addressed key areas needed to prop up the ailing banking industry but lacked original ideas and differed little from the policies of the Bush administration. The lack of original ideas signaled a return to risk aversion as Forex brokers sought out the safe havens of the dollar, Yen, and Swiss Franc.
Geithner’s Remarks Short on Substance
Treasury Secretary Geithner’s remarks were seen as short on substance and detail and disappointed many who had been waiting for specific details on the bailout plan. Adam Fazio of CIBC World Markets stated, “People were expecting the government to come up with details on how to fix things. And it doesn’t sound that more details about the plan are forthcoming, so I think there is more risk inherent in the market.”
BOE To Take Extraordinary Measures
The Pound fell further after a bank of England report suggested that extraordinary measures are needed including monetary easing. Forex opportunities were limited by the global flight to safety on currency exchanges. Market uncertainty remains about the fate of the $838 billion stimulus package passed by the US Senate on Tuesday. Both houses now have to haggle over details of the plan causing further delay and limiting Forex opportunities.
Markets Volatile
Markets remain volatile and Forex traders and investors took advantage of the Forex opportunities earlier in the week when risk aversion eased. Markets were waiting for both Bernanke and Geithner to outline and provide details of the US bank rescue and stimulus plans. The return to risk appetite during this short period provided many Forex opportunities for investors. Markets remain uncertain and the sooner the US congress acts, the better.
No comments:
Post a Comment