Today all trading settled, as US losses stopped yesterday after Mr. Bernanke ensured in his testimony that they are going to cut rates to revive the economy once again, as fears from recession is still on which helped a drop in the financial sector stocks.
The Euro dropped to 1.4620 recording a low of 1.4609 and a high of 1.4661, as fears of slowing growth are dominating the European Union, as markets are waiting for Mr. Trichet speech today to determine what might be the next step to the monetary policy in Europe.
The British pound set at 1.9700 levels, recording a high of 1.9726 and a low of 1.9665, with expectations that the December Retail sales rose 0.2% lower than the previous 0.4% as it might rise especially that it was in the Holiday season on the month, the yearly retail sales rose 3.3% from the previous 4.4%, which might be used as another sign that the economy is going to drop.
As investors' are being pessimistic about the US futuristic outlook they decided not to take any risky position, which led to a reversal action of carry trades; the Japanese Yen strengthened against the US dollar returning to 106.30 levels; recording a low of 106.33; as markets waiting to see what's Mr. Bush plan in order to support the US economy which boosted the pair slightly to a high of 107.32 levels.
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