Forex News and Rumors – Afternoon Update

Federal Reserve Implements $200 B Consumer Credit Program

The US Federal Reserve today launched its Term Asset-Backed Securities Loan Facility today intended to boost consumer spending by providing up to $200 billion in new credit earmarked for consumers and small businesses. More

Canadian Dollar Outlook Bearish on Rate Cut

Analysts predict that the Canadian dollar – which hit a three-month low after the Bank of Canada cut interest rates today to a record low 0.5 percent – could weaken further now that the only monetary tool available to the Bank is quantitative easing. More

Peso Gains on Speculation IMF Will Provide Loans

Mexico’s peso gained on recent record lows against the US dollar today as speculation grows that the International Monetary Fund (IMF) will offer assistance to Mexico. More

Auto Woes Continue

Ford Motor Company announced that US sales were down 48 percent from last year, while Toyota Motor Company said that sales fell by 40 percent. The sharp reduction in new car sales has analysts suggesting that the hoped-for rebound in sales later this year could actually be much further off greatly imperiling the ability of General Motors Corp. and Chrysler LLC to avoid bankruptcy. More

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