Thread: OzForex Market Update (01/11/2010 - 05/11/2010)

Good morning all,

I hope you had a great weekend?

In the markets we saw The dollar weaken across the board as a result of news from the Federal Reserve concerning fresh stimulatory measures, or quantitative easing mark 2 (QE2). The Fed, who had been previously talking down the size of the stimulus package, unveiled plans to buy $600 billion of government bonds over the next 8 months, with the additional inclusion of maturing assets, bringing the total purse to a possible $850 - 900 billion worth of asset purchases. Policy makers mentioned keeping rates at ultra-low levels for an extended period, and added that the use of QE would become a common policy tool, rather than an emergency back-up plan.

Pound Sterling (1.6280) opens at a ten-month high after the Bank of England held its benchmark interest rate at 0.5 per cent and kept its bond-purchase program unchanged. The currency hit an overnight high of 1.6298. Better-than-expected jobs local jobs data yesterday sent the kiwi soaring, while the Australian Dollar managed to hang onto its gains above parity yesterday despite softer-than-expected retail sales data.


Have a great week all.

Regards

Jon

Alliance Manager
http://www.ozforex.com.au

Thanks for this Jon.

Good info Jon,

Good to see that the FED is spending our money for us again ;-)