Stock Markets in Turmoil, Currencies Calm

It has been a wild ride for the various exchanges around the world today. As you will likely know, the DOW opened down 450 points, only to recover most of it after news of a 0.75% cut in interest rates by the Fed. That said if you look at the chart throughout the trading day you will see it has bounced a round quite a lot even after the interest rate news. The same can’t be said for exchange rates. If you look at the exchange rates, you will see they have moderated over the day with far less volatility. Given the connection between interest rates and exchange rates you would expect there to be some shift in the value of the dollar following the unexpectedly large interest rate cut. Yet the dollar is only slightly worse off than it had been suggesting currency traders see more good news in the rate cut than bad. I’m curious why the opinions of currency traders haven’t been sought today by the likes of AP. I’m pretty sure they’d have some useful input to the discussions going on following the rate cut.

Advertisements

2 Comments on “Stock Markets in Turmoil, Currencies Calm”

  1. 宀苝Q says:

    Get bored farming wow gold yourself? Need to buy WOW Power Leveling urgently ? Have it a try here WOW PowerLeveling,World Of Warcraft Gold! We provide cheap World Of Warcraft Power Leveling excellent World Of Warcraft PowerLeveling serice!

    Find Gas Alarm – Natural Gas Detector, Methane Co Detector more. Co Alarm,Alcohol Tester in China (mainland), South Korea around the world.We always provide Breathalyser. Free Breathalyzer,Alcohol Tester.

    我司专业提供升降机、高空作业车、高空作业平台、数据恢复RAID数据恢复;其中包括弹簧式直升式升降机、曲臂式表决器租赁(曲臂高空作业车)和剪叉式升降机等。


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s