Posted by Allison on 24 March 2009, 09:37
LIBOR rates – the interest rates banks charge each other – seem to be back under control, which is great news for the global economy (and forex in particular) but now American policy makers are worried about the onset of a recession in the USA and they are continuing to slash rates in an attempt to stimulate growth and lower the value of the USD to overseas buyers.
Posted by Allison on 24 March 2009, 09:36
The US FED's rate cutting reaction to the Sub-Prime problem continued in December, and the UK's Bank of England decided to follow suit and cut their rates too in an attempt to get the LIBOR inter-bank lending rates to correlate more closely to the base rate.
Posted by Allison on 24 March 2009, 09:32
The USD had some big moves against the other major currencies in November. There have already been serious dollar declines in recent months, but they show no sign of stopping as further US interest rate cuts may be on the cards.