Fundamental Headlines • Fed Pushes to Resolve Wachovia Deal Dispute – Wall Street Journal • Bank of America in Settlement Worth Over $8 Billion – Wall Street Journal • Risk aversion boosts yen – Financial Times • Bank Writeoffs May Triple, Bond Spreads Fall on TARP – Bloomberg • European Governments Race to Help Banks Amid Crisis – Bloomberg • GBPUSD – Amid the lack of economic data, U.K. Chancellor Alistair Darling announced that the government has yet to pressure the BoE to lower the benchmark interest rate, and backs the BoE’s neutral policy stance. He went on to say that the government will take the necessary actions to offset the sharp decline in Europe’s second largest economy, which suggests that the BoE may hold the benchmark interest rate steady at 5.00% for the rest of the year. The government is scheduled to release a new outline to how they will respond to the financial crisis on Wednesday, which may help to boost the British pound. Discuss the topic and your trade ideas in the GBP/USD Forum. • EURUSD – Investor confidence in the Euro-Zone fell more than expected as the Sentix index slipped to -27.8 from -20.2 in September. The breakdown of the report showed that expectations plunged to -41.0 from -28.0 in the prior month, signaling that investors expect financial conditions to deteriorate further as the effects of the financial crisis spills into the global economy. Discuss the topic and your trade ideas in the EUR/USD Forum.
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Euro Breaks Below 1.36 as German Rescue Plan Fails, Investor Confidence Disappoints