In the News - Forex News

August 7, 2007

Interesting Forex Related Headlines

How Did Things Get So Bad?

Greg Ip at the Wall Street Journal wrote a fascinating article titled “How Credit Got So Easy and Why its Tightening”

“When the Fed cut interest rates to the lowest level in a generation to avoid a severe downturn, then-Chairman Alan Greenspan anticipated that making short-term credit so cheap would have unintended consequences. “I don’t know what it is, but we’re doing some damage because this is not the way credit markets should operate,” he and a colleague recall him saying at the time.

Now the consequences of moves the Fed and others made are becoming clearer.”

Will German Rail Strikes Hurt the Euro?
According to this FT article
“a full-scale labour dispute involving passenger trains would cost it more than €10m ($13.8m, £6.8m) a day and put the daily cost for the German economy at €500m. Economists, meanwhile, worry that a generous settlement could fuel wage inflation.”

Are Problems at Honda Indicative of Weakness in the Overall Japanese Economy?

According to Bloomberg
“Japan’s regular vehicle sales fell for the 25th straight month in July. That’s the longest losing streak since a 31-month drop that began in April 1997.”

Fewer Buybacks in the months to come according to WSJ

Reserve Bank of New Zealand Spent NZ$736m on intervention

Posted in Adjustable Rate Mortgages, American Home Financial, Australian Dollar, FOMC, Federal Reserve, Forex, Forex News, Japanese Yen, New Zealand dollar, Stock Market, US Dollar, euro