Record turnover in the FX market Sep.27/07
Forexmentor.com Forex Trading Price Action
According to David Rosenberg, chief North American economist at Merrill Lynch & Co. in New York, “We do believe that the Fed is going to stay on an aggressive easing campaign, but we question whether or not it is already too late. All the classic signs are there.” He expects more cuts are on the way, but he maintains that the Fed may have been a little slow to respond. “If you look back to the 1990 and 2001 experiences, the Fed cut rates 150 basis points both times before the recession began,” he said. “But, the grim reality is that the recession did begin and the Fed was too late both times.”
Daily turnover on global foreign-exchange markets exploded to $3.2-trillion over the past three years – a record 71% increase. According to the Bank for International Settlements, trading in Chinese yuan and the Indian rupee rose more than any other currency in the past three years, as economic growth in the world’s two most populous nations accelerated.
U.S. home prices and sales are still in the doldrums. With prices dropping the most in 16 years, U.S. consumer confidence is at its lowest level in five years.
This report as at Wednesday, September 26/07 – Source: Financial Post
