Forex News and Rumors – Afternoon Update

US Spending Falls Less Than Expected

The US Commerce Department announced that construction spending fell by 0.6 percent for the month of November – this is much less than the 1.3 percent many experts predicted. Despite this unexpected news, future outlook for construction spending remains very weak. More

Germany Working on €50 Billion Economic Package

Criticized for being too cautious with an earlier €23 billion economic stimulus package, Germany’s Chancellor agreed to an additional €50 billion to help pull Europe’s largest economy out of recession. More

NY Federal Reserve Buys Mortgage-Backed Securities

The Federal Reserve Bank of New York started buying mortgage-backed securities earlier today following though on a commitment from November of last year that would see the Federal Reserve buy up to $500 billion worth of mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. The move is expected to bring down the cost of mortgages and also make more funds available for lending. More

Canadian Dollar Gains on Rise in Commodities

The Canadian dollar – which tends to rise and fall with commodities and oil prices – had a strong showing today gaining 1.5 percent on its American counterpart. More

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