Nonfarm Payrolls - What Will Be the Greenback’s Fate?

The USD was up against the EUR and held steady against its other European rivals early Thursday in New York as the Bank of England cut interest rates. The BoE’s Monetary Policy Committee cut its key interest rate to 5.5% from 5.75% yesterday, the first cut in 2 years, as evidences mounted that the economy is slowing. Overall, the USD remained relatively unchanged after the U.S. jobless claims fell. President Bush is set to unveil plans to help struggling homeowners to avoid foreclosure and this move is expected to help circumvent a U.S. economic recession. However the U.S. still faces a deteriorating housing market for at least another 6 months. Despite the greenbacks’ strong performance over the past 2 days, however, analysts cautioned against jumping on a dollar-recovery bandwagon too soon. There are still a lot of reasons for the EUR/USD to hold above 1.4500. Financial markets remain susceptible to […]

This entry was posted on Friday, December 7th, 2007 at 6:28 am and is filed under Nonfarm Payrolls. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.