Monday March 17, 2008 - 20:34:12 GMT
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FX Blog- Market Snapshot Far East Open for 18 March 2008
GVI Market Snapshot- Far East Open
- The USD is closing weaker vs. the EUR and higher vs. the GBP against late Friday levels. The carry trade financing currencies, CHF and JPY, are up strongly.
- The focus of activity starting with the Asian open Friday was on risk aversion plays following the Bear Stearns (BSC) developments over the weekend. In addition to the JPM take-over, the Fed has took a number of steps to insure the liquidity of the system. A major step was a decision by the Fed that primary dealers would have direct access to the discount window and a -25bp cut in the discount rate to 3.25% ahead of the FOMC meeting tomorrow. Chatter is that the Fed will cut its Fed funds target by 100 bps on Tuesday and also reduce the discount rate accordingly.
- The commodity currencies (AUD, CAD and NZD) are sharply weaker vs. the USD on risk aversion plays. Gold is steady and oil is sharply weaker on the soft USD.
- Asian bourses closed sharply lower earl. Key European bourses closed down. U.S. stocks ended weaker. U.S. bond prices are up sharp on a flight to safety. .
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