15.07.2008 11:17

FOREX. Monday summary

The dollar rose against the euro for the first time in four days after Treasury Secretary Henry Paulson asked Congress for authority to buy stakes in Fannie Mae and Freddie Mac to restore confidence in financial markets.
The currency also climbed after the Federal Reserve separately authorized the companies, which buy or finance almost half the $12 trillion of U.S. mortgages, to borrow directly from the central bank. The dollar pared gains as concern losses at regional banks will deepen pushed most U.S. stocks down.

EUR/USD printed lows near $1.5840 before rebounding to session highs on $1.5930. New wave of dollar’s demand dragged the euro down to $1.5880.
GBP/USD tested $1.9811 before slowly rising to $1.9960, triggering some positions on the break through stops and bids between the $1.9900/10 zone.
USD/JPY fell from Y106.80 to Y106.00. Later rate managed to rebound to Y106.30.

Dollar may retreat Tuesday onspeculation Fed Chairman Ben S. Bernanke will highlight risks to the economy in his semi-annual testimony on monetary policy before the Senate Banking Committee tomorrow.
Euro may come under pressure on speculation investor confidence in Germany, Europe's largest economy, fell to a 15- year low, weakening the case for higher interest rates. The ZEW Center for European Economic Research in Mannheim will say its index of investor and analyst expectations fell to minus 55 in July from minus 52.4 in the previous month, according to a survey.