The support for this shift is not just in price but also as President Obama has talked of a potential $750 billion for the financial industry and as the U.K. is taking steps to extend the guarantees on distressed bank assets. There is confidence that accompanies these moves as fear and uncertainty are -- at least on the surface -- calmed by such actions. Fed Chairman Bernanke has also helped as his two-day testimony this week sent a clear signal to the markets that he is not interested in nationalizing the banks. When asked what he would call the current stance the Fed is taking, he referred to it as “public/private partnership”. The market seems satisfied with that understanding.
Sunday, March 1, 2009
The Dollar Haven and the EUR/USD Support
As the global community gets their houses in order, the safe haven demand for the U.S. Dollar could be on the slide. The U.S. Dollar Index continues to head higher off support on the daily but the 88.00 to 88.50 level is more than a ceiling, it’s possibly signs of a global shift. As long as the U.S. Dollar is trading above 87.00 there is plenty of support and this translates into resistance on the EUR/USD.
Posted by Remnant 888 at 7:10 PM