The US dollar continues to weaken, amidst a growing notion that not every financial sector will be bailed out by the Federal Reserve, or the American government. This notion fueled a fear of a wave of bankruptcies.
Yesterday’s Consumer sentiment data from the USA was much lower than last month’s figure. A drop in consuming also hurt the American currency.
Bad data in Britain, didn’t hurt the pound. The cable gained ground, despite the deep recession, probably due to the dollar’s weakness.
In Canada, interest rates were lowered to a 50 year low – down 0.75% from 2.25% to 1.5%. This was a quarter of a percent sharper than expected. This big drop could indicate that the Canadian interest rate could go as low as 0%, a similar fate like its big southern neighbor.
And in Switzerland, today’s ZEW consumer sentiment data is anxiuosly expected, although it has a weaker impact than yesterday’s German ZEW data on the Euro. Dollar traders are looking into the Wholesale Inventories data.
All in all, today is a rather calm day. Tomorrow seems much more interesting…Get the 5 most predictable currency pairs