Forex News and Rumors for October 2nd, 2008

European Central Bank Holds the Line on Interest Rates

Despite a weakening economy and several high-profile bank bail-outs, the European Central Bank maintains the benchmark lending rate at 4.25 percent.

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Rescue Bill Passes Senate – Now Heads for Congressional Approval

The revised Troubled Asset Relief Act (TARA) received Senate approval last night by a vote of 74 to 25. The dramatic drop in markets after Congress rejected the original bill “really had a chilling effect on a lot of our members and a lot of their constituents” stated House Leader John Boenher who believes that the changes will now make the bill acceptable to a majority of Representatives.

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British Pound Falls on Weak Housing News

The pound fell against the dollar after a report was released showing that house prices in the U.K. have dropped 12.4 percent from one year ago, prompting market watchers to predict that the Bank of England will lower interest rates in a bid to boost the economy.

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