Forex News and Rumors – Afternoon Update

Sterling Loses Ground in Wake of Bank Spending

Currency traders backed away from Sterling this morning after the Bank of England noted that the recession in the UK was worse than previously believed. As a result, the pound fell against both the dollar and the euro. More

California Suffers Record Unemployment

California has suffered through a budget crisis that pushed the state to the edge of bankruptcy, but the world’s eight largest economy can now add a record 13 percent unemployment to its list of troubles. More

Oil Prices Fall as Dollar Strengthens

A strengthening US dollar – together with weaker equity prices – conspired to pull down oil prices as investors abandoned oil as a hedge against the falling dollar.

“There are plenty of reasons to be bearish in this market,” said Peter Beutel, president of trading advisory firm Cameron Hanover Inc. in New Canaan, Connecticut. A stronger dollar and a weaker equities market is “the combination we need to take a good look at fundamentals,” he said. More

Doubts Growing that China Can Rescue Global Economy

It has been popular belief in some circles that China can single-handedly whip the global recession into submission – indeed China has accounted for the vast majority of the world’s growth the last quarter, but some experts are warning that it will take more than just China to solve the recession. More

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