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Dollar dipped after Bernanke remark on economy

Discussion in 'Forex Daily News & Outlook' started by prav, Jun 6, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The Dollar fell against the Euro and Yen on Tuesday after Federal Reserve Chairman Ben Bernanke said the ailing US housing sector may remain a drag on economic growth. Bernanke warned that problems in the housing market may drag on US growth for ?somewhat longer? than expected. Wall Street firms have been changing their calls on the Fed's next move. Goldman Sachs said Tuesday it now expects the Fed to hold rates at 5.25% this year and nest, reversing an earlier call of 75bp cuts in 2007. Merrill Lynch and UBS also reversed calls for a Fed cut this Year. The European Central Bank is expected to lift interest rates to 4% at a meeting on Wednesday, and some are betting on official's signals for a future increase.


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