Forex News and Rumors for October 28th, 2008

RBC Recommends Selling Aussie as China’s Economy Weakens

RBC Capital Markets has released a recommendation for the selling of Aussie dollars in favor of U.S. dollars suggesting that the Aussie could fall to 60 cents within the next two quarters. The recommendation is based on an expectation that as China’s economy slows, this will reduce demand for Australian resources.

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Crude Rises on Stock Increase and Further OPEC Warnings

Oil futures rose as stocks in Europe and Asia gained in early trading on Tuesday just as Organization of the Petroleum Exporting Countries (OPEC) ministers suggested the possibility of another meeting in December raising speculation of further production cuts.

Outlook Dims for Eurozone

The dream that led to the creation of the European Union and the economic might expected to result may now prove to be an Achilles’ Heel as the ability for the Eurozone countries to battle recession on an individual basis has been severely curtailed.

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Iceland’s Interest Rate Raised to 18% from 12%

As part of it’s agreement with the International Monetary Fund (IMF) which saw Iceland receive $2 billion in emergency funding, Iceland’s central bank increased the key lending rate to 18%.

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Click here for a summary of the events leading to the economic crisis in Iceland.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.