Overnight, details of the US government’s plan to soak up billions in toxic assets to get them off of bank balance sheets began to be come clear. At the same time, the SEC announced temporary measures to ban short selling on a list of nearly 800 stocks. Just hitting the tape is a new government measure, a fund to guarantee money market funds, a $4 trln asset class. Paulson lays it all at 10 AM.
Share markets around the globe are soaring on hopes that these measures will restore investor confidence. The dollar’s performance is mixed on the news, rising against the former safe-havens like Swissy and Yen but falling against the high-yielders like AUD and NZD. EUR/JPY is up as risk aversion trades are covered.
EUR/USD found support in the 1.4150 area and trades now at 1.4215.
