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Dollar Falls Sharply against New Zealand and Aussie Dollars

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 10, 2009.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    Stronger global equity markets contributed to the weakness in the Dollar early in the trading session as traders once again increased demand for more risky assets after reassessing U.S. economic data and the odds of an interest rate increase by the Federal Reserve.

    The U.S. Dollar finished mixed against most major currencies with the massive losses coming against Pacific Rim markets.

    The NZD USD posted a strong gain fueled by the prospect of an interest rate hike sooner than previously expected. In adapting a more hawkish tone at today’s monetary policy meeting, the Reserve Bank of New Zealand said that if the economy continued to improve, conditions may support the removal of monetary stimulus “around the middle of 2010. This last line was more bullish than the previous announcement which said rates would not be raised “until the second half of 2010”.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
  2. Rider

    Rider New Member

    Nov 24, 2009
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    Overhauling the financial regulatory system has been a major priority of the Obama administration, which has been involved in almost every step of the nearly year-long process. High ranking Treasury officials visited House Speaker Pelosi's office this week, when some parts of the bill appeared in trouble.

    "This legislation brings us another important step closer to necessary, comprehensive financial reform that will create clear rules of the road, consistent and systematic enforcement of those rules, and a stronger, more stable financial system with better protections for consumers and investors," President Obama said in a statement.

    House Republicans have been united in their opposition, saying the bill would provide a permanent bailout of Wall Street and a step toward socialism. One of the bill's lead opponents, Rep. Jeb Hensarling, R-Texas, said it would impose "sweeping draconian powers" on private businesses.

    However, over the past several months, the bill has faced its biggest hurdles among Democrats.

    Conservative Democrats picked apart different sections, especially the consumer protection agency, saying they worried it would hurt small businesses.

    In fact, the plan for the agency has been watered down from the version first proposed by the White House. It no longer would examine and enforce consumer protection rules at 98% of credit unions and banks, most of them smaller. It also would not regulate auto loans, even though auto loans are among the most common issued to consumers.

    The Congressional Black Caucus held up the bill at one point, citing displeasure with the lack of support for loans and jobs to those in minority communities.

    To smooth things over with those lawmakers, the bill transfers $3 billion from the federal bailout program to provide emergency loans capped at $50,000 to unemployed homeowners to help them prevent foreclosure.

    It also would redirect another $1 billion of bailout money into federal neighborhood stabilization programs to redevelop abandoned or foreclosed homes.

    Here's what else it would do:

    Federal Reserve: The bill would allow Congress to order the Government Accountability Office to audit Fed activities, which the Fed says would interfere with the central bank's ability to carry out independent monetary policy.

    Derivatives: The bill attempts to shine a brighter light on some of the different kinds of complex financial products, called derivatives, that are blamed for bringing down financial companies such as American International Group (AIG, Fortune 500) and Lehman Brothers. It would pass some of these derivatives on to clearinghouses, which would help pinpoint the value of such trades. However, some derivatives would still be unregulated, including those traded by big agricultural and airline companies to mitigate risk.

    Oversight: It creates a new oversight council that would look out for major problems at large financial firms, giving the Federal Reserve a key role in enforcing tougher regulations on larger firms.

    Breaking up: It would also give regulators new powers to break up companies that have grown too big, if they threaten to destabilize the financial system.

    Executive Compensation: It would give shareholders the right to a nonbinding proxy vote on corporate pay packages.

    The House rejected, by 223-208, an amendment that would have effectively killed the Consumer Financial Protection Agency, replacing it with a council of existing regulators.

    The members also voted down, by 241-188, an amendment that would have given bankruptcy judges new powers to lower balances on mortgages in order to prevent homeowners from losing their homes in foreclosure.

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