Forex News and Rumors – Afternoon Update

Geithner Reassures China Over Ballooning US Deficits

US Treasury Secretary Timothy Geithner told top Chinese officials at a series of meetings in China today that the Obama administration is aware that America’s increasing debt is causing its largest creditor concern over the safety of its investment.

“As we recover from this unprecedented crisis, we will cut our fiscal deficit, we will eliminate the extraordinary government support that we have put in place to overcome the crisis,” Geithner said in a speech to students at Peking University. More

Technical Analysis Shows Canadian Dollar Could Continue Gains

The Canadian dollar’s 50-day moving average passed over the 200-day moving average at the C$1.1957 mark suggesting that the “loonie” has momentum to continue making gains on the US dollar. More

Pound Increases to $1.64

The US dollar is being attacked on all fronts these days with even the struggling British Pound moving above $1.64 for the first time in seven months. More

US Consumer Spending Falls for Second Straight Month

US consumer spending fell by 0.1 percent in April after retracing 0.3 percent in March while personal income increased by 0.5 percent. The increase in income can be attributed to tax cuts and benefit payments from the government’s economic stimulus package. More

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