The dollar rose against the euro, approaching a one-year high, after the U.S. Senate approved a $700 billion bank-rescue bill to ease a global credit crisis.
``The ability to secure funds in the money market hasn't improved in the slightest,'' said Akio Shimizu, chief manager of foreign-exchange trading in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan's largest publicly listed lender. ``This should support the dollar as banks that need the currency will simply buy it outright in the foreign-exchange market.''
Source: Bloomberg
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Everyone was expecting a rally following the Senate vote but the opposite is going on. Futures are down 90+ points; Asian markets are down while Dollar is at yearly high. So, tomorrow oil will be heading down.
I guess the markets will be in a wait and watch mode till the House passes it.
FOMC Projections
4 hours ago
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