US Dollar rallies as government takes control of Fannie Mae & Freddie Mac
Disclaimer: THIS MATERIAL IS NOT INVESTMENT RESEARCH AS DEFINED BY THE FINANCIAL SERVICES AUTHORITY
The US Dollar strengthened to a 26 month high against Sterling and traded close to an 11 month high against the Euro. It seems that the US Dollar has been moving with confidence as the government has taken control of the mortgage giants. The mortgage providers used accounting “loop holes” to build a “house of cards” as the housing market plummeted. It seems that there simply was not enough capital.
Regardless of the uncertainty behind two of the largest mortgage finance companies, it seems that traders are confident the issues are under control and safely in government hands. The dollar is not showing any signs of weakness, the greenback now looks to be the currency of choice for the investor.
Prior to August the dollar was severely over sold against the Euro and the pound, the come back since has been aggressive and ruthless. Very rarely do markets move with such conviction. The explosive move will not continue as it has been, shortly we should see a retracement as market participants take profits on long dollar positions. After which it is likely in the medium term that the US Dollar uptrend will continue.
Tuesday 09 September 2008, 11:22am
Latest Posts
01 December 2011, 09:46am
16 May 2011, 11:04am
29 November 2010, 11:48am
08 September 2010, 10:30am
11 August 2010, 02:29pm
03 August 2010, 11:02am
23 July 2010, 04:10pm
14 July 2010, 10:12am
02 July 2010, 04:20pm
23 June 2010, 02:41pm
Monthly Archives
2011
December (1 entry)
May (1 entry)
2010
November (1 entry)
September (1 entry)
August (2 entries)
July (3 entries)
June (1 entry)
May (3 entries)
April (3 entries)
March (4 entries)
Febuary (3 entries)
January (3 entries)
2009
December (1 entry)
November (3 entries)
October (2 entries)
April (3 entries)
March (7 entries)
Febuary (4 entries)
January (11 entries)
2008
December (8 entries)
November (12 entries)
October (13 entries)
September (12 entries)
August (4 entries)
July (4 entries)
June (17 entries)
May (12 entries)
Tags
The details expressed in this website are for information purposes only and are not intended as a solicitation for or a recommendation to buy or sell any currency. You should exercise your own judgment before entering into any financial transaction, including the buying or selling of foreign exchange. FairFX Plc accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.
The material set out in this website is current as of the indicated date. This material is prepared from publicly available information believed to be reliable, but FairFX Plc makes no representations as to its accuracy or completeness. All expressions of opinion are subject to change without notice. Opinion may be personal to the author and may not reflect the opinions of FairFX Plc.
FairFX Plc is not acting as your financial adviser or in a fiduciary capacity in respect of any foreign exchange transaction Before entering into any foreign exchange transaction you should take steps to ensure that you understand the transaction and have made an independent assessment of the appropriateness of the transaction in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction.
