Forex News and Rumors for September 9th, 2008 – Afternoon Update

OPEC Is Expected to Maintain Output Despite Price Drop

The group seems divided in two camps: Iran and Venezuela support a cut in production and higher prices, Saudi Arabia is for maintaining production levels and supports lower oil prices. The influence the Saudis have on the Oil market might prevail in this meeting and allow their production goals to be carried out.

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Lehman Shares Plunge on Reports

Shares of the US Investment bank dropped after rumors circulated that the Korean Development Bank would not be investing in the troubled financial firm.

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Loonie Down Against US Dollar

Falling crude prices place downward pressure on the Canadian dollar as it falls in late-day trading.

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Yen Continues to Climb

Recent interest rate cuts in Australia and New Zealand have closed the gap between the higher-yielding currencies and the lower-yielding yen resulting in further carry-trade sell-offs. Demand for the yen to unwind these positions has reversed the yen’s slide against both the Australian and New Zealand dollars sending it to a two-year high.

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Canadian Housing Starts Up 13% for August

Despite a 3.2% reduction in pending home sales reported earlier today in the U.S., housing starts in Canada increased more than 25,000 units in August over the previous month.

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