The U.S government stated it would raise its current stake in the Wall Street bank to as much as 40% in a recapitalization plan. This sent the dollar tumbling as risk appetite somewhat returned - Asian markets took well to the news except for the Nikkei which traded lower by half a percent. EURUSD traded a range of 1.2764 - 1.2949, rising as the dollar faltered on a brief return of risk appetite.
Gold traded as high as $1'006.42/oz on Friday as it was reported many Japanese funds were buying gold as the Yen lost it's haven status. A distinct correlation between the monthly USDJPY and Gold chart shows this relationship clearly. USDJPY traded a 92.76 - 93.66 range as the Yen continues to slide against the dollar despite a broad weakening of the dollar. Risk appetite seems to have returned momentarily as further measures to secure the U.S financial system spurs on investors - Gold set to continue rising.
Euro-zone heads hold talks over the weekend that didn't amount to much - however they do announce a Euro-zone bond issue set to start soon. This is the first sign of a concerted effort - which did well to boost the Euro.
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