Dollar Weaker

Good Morning:

The greenback dropped, and the dollar index fell the most in a decade after the 50bps cut yesterday by the Fed.  World equity markets rallied as demand for higher yielding assets increased.  Risk appetite is increasing as the marketplace feels that world governments are actually accomplishing something constructive regarding the crisis.

Libors are lower again this morning.

Good Morning:

The dollar was lower again today as traders speculate that this morning’s data on inflation and housing may cause the Fed to reconsider an increase in interest rates at next weeks FOMC meeting.

The dollar has been moving lower as the price of oil stays above $119.00.  The EURUSD tested Friday's close and bounced.  Now getting some addtional short covering as the expected offer did not materialize.  Approaching intraday resistance at 1.5655. 

GBPUSDis making new highs on the day, as it continues it up and down movements over the last half of the month.  1.9972 was the high on the 23rd.  I would expect sellers at this level this morning/today.

Monday 3/31/08

Good Morning:
The dollar may be heading for its largest quarterly loss versus the Euro since 2004.

The GBP fell to a record low versus the common currency (Euro), as UK house prices dropped again.

As the FED keeps lowering interest rates to stem an economic slowdown, the ECB has held their benchmark interest rates steady to stem inflation in the Eurozone.
Equities in Asia and Europe dropped as continued concerns about credit markets losses mount.

US futures are also pointing to a lower opening this morning.

Thursday 3/28/08

Good Morning:
The greenback is poised to end the weak on a lower note.

Speculation that the FED will need to cut interest rates further to avert a recession, added steam to an already weakened dollar.

World equity markets were mixed-Asian markets were higher, and European indexes were stable.
US futures point to a higher opening as Citigroup upgraded Lehman Brothers to a “buy” from “hold”.

Gold: $ 950.70     |     Oil: $ 106.70

Data this Morning:
Personal Income Actual + .5% Expected +.3%