Forex News and Rumors for September 4th, 2008 – Afternoon Update

BoJ Deputy Governor Says Economy’s “Sluggishness” To Last Longer Than Expected

Adding further to the speculation that Japan is facing an economic recession, Bank of Japan Deputy Governor Kazumasa Iwata stated earlier today that “sluggishness” in the Japanese economy “could be prolonged”.

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July Construction Spending in the U.S. Falls by 0.6%

Construction spending declined for the 16th month in a row with July spending falling another 0.6%. Estimated spending was pegged at $357.8 billion which is the lowest monthly amount since March of 2001.

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Mexican Peso Drops Against the US Dollar

Falling oil prices are being blamed for the peso’s continuing decline. The peso shed another 0.7% to reach a 3-month low of 10.4712 per US dollar.

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Euro Zone Chair Feels Euro is Overvalued

Jean-Claude Juncker – Chair of the Euro Zone Ministers – stated that he believed the euro was overvalued “not only against the dollar, also against other currencies”.

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Euro Falls After Comments by Trichet

European Central Bank President Jean-Claude Trichet earlier today described the euro zone economy as being “in an episode of weak economic activity”.

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