Sub-prime lending adds to Dollar woes and Sterling suffers from unwinds.
Wall Street suffered its second biggest one day lose of the year so far following concerns over the US sub-prime lending sector. The Dow fell close to 245 points or nearly 2 percent after news that mortgage delinquencies hit a 4 year high in the fourth quarter.
Traders are concerned that the problems in the sub-prime market could spill over into the wider economy and was encouraging investors to unwind further carry trades. In addition to the problems in the sub-prime sector consumer spending fell short of expectations for the month of February.
Headline sales rose just 0.1 percent while sales excluding autos fell 0.1 percent. This is the first drop in sales excluding autos since October 2006. Today we will see the release of the US Q4 current account balance with the median looking for -203.0
During a day in which we saw the renewal of liquidation in many currency pairs the Euro remained fairly stable. Although the German ZEW survey showed a deterioration in analysts sentiment, this figure was less than expected after concerns of an increase in VAT and the recent rate increase.
In Fact, Bundesbank President Weber joined ECB's Lienscher in saying that risks to price stability still remain on the upside and further rate rises may be required.
The trade gap in the UK shrank to its lowest in more than a year, figures showed yesterday. Sterling continued to suffer the most from the unwind of carry trades as risk aversion returns again.
The Nikkei ends 2.92% lower at 16,676.89 booking its 2nd biggest daily percentage fall this year and closing in on 3-mth low as Japanese exporters fall on concerns of a stronger yen and the turmoil in the US lending sector.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Traders are concerned that the problems in the sub-prime market could spill over into the wider economy and was encouraging investors to unwind further carry trades. In addition to the problems in the sub-prime sector consumer spending fell short of expectations for the month of February.
Headline sales rose just 0.1 percent while sales excluding autos fell 0.1 percent. This is the first drop in sales excluding autos since October 2006. Today we will see the release of the US Q4 current account balance with the median looking for -203.0
During a day in which we saw the renewal of liquidation in many currency pairs the Euro remained fairly stable. Although the German ZEW survey showed a deterioration in analysts sentiment, this figure was less than expected after concerns of an increase in VAT and the recent rate increase.
In Fact, Bundesbank President Weber joined ECB's Lienscher in saying that risks to price stability still remain on the upside and further rate rises may be required.
The trade gap in the UK shrank to its lowest in more than a year, figures showed yesterday. Sterling continued to suffer the most from the unwind of carry trades as risk aversion returns again.
The Nikkei ends 2.92% lower at 16,676.89 booking its 2nd biggest daily percentage fall this year and closing in on 3-mth low as Japanese exporters fall on concerns of a stronger yen and the turmoil in the US lending sector.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: currency converter, sub prime financing
posted by Wise Money @ 8:48 AM
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