Forex News and Rumors – Afternoon Update

LIBOR Rate Remains Below 1%

The London Inter-bank Offered Rate (LIBOR) – the benchmark used to set lending rates between commercial banks – remained below 1 percent for the fifth straight day as confidence continues to grow that the credit freeze could be abating. More

UBS Warns of Betting Against the Dollar

UBS has advised its clients to watch for a resurgence in the dollar and to limit short positions counting on further losses in the dollar.

“The U.S. dollar has weakened on the back of improved risk sentiment, but we do question the sustainability of that trend,” Gareth Berry, a currency analyst in Zurich, wrote today in a note. “We would not recommend buying into U.S. dollar weakness at current levels.” More

Falling Commodities and Oil Prices Drag Down Loonie

The Canadian dollar – nick-named the loonie – fell by 1 percent to C$1.1613 per US dollar by 2:00 PM today in Toronto. Falling commodity prices – especially a drop in oil that had been flirting with $59 a barrel last week – are primarily responsible for reversing the loonie’s six-week winning run against the US dollar. More

Wall Street Down as Investors Take Profits

The Dow fell just over 100 points to 8,470.86 in mid-day trading today as investors took profits earned over the past two weeks. The S&p 500 was down nearly one and half percent to 916.83 while the Nasdaq composite index managed a 0.4 percent gain to 1,746.47. More

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