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Market News – US Dollar Skyrockets Against The Euro, Swiss Franc Rises…

Even with news of the US debt deal fresh on the minds of currency traders, the US dollar still made a huge jump against the Euro. Fears of a US economy that isn’t really growing and may even regress back into tougher times coupled with talk of a credit rating downgrade had a huge effect on the rates.

In terms of the Swiss Franc – it continues to rise against almost all other currencies. The Franc is often seen as a safe haven currency that people invest in when things aren’t going to well elsewhere – much like the current situation…

 

Lack Of Trust In Italy A Threat To Euro?

As Italian banks report huge losses once again, a lot of investors are begginning to think that Italy may be a threat to the strength of the Euro.
Even though Italian officials and analysts at some major Italian banks insist that there is nothing to worry about and the Italian economy is much stronger than that of Greece and Spain, people are still starting to get concerned.

Italy still holds a huge amount of debt, but their economy is still relatively strong and their fiscal policy is quite different than that of Spain and Greece. Whatever the case, people are keeping a close eye on how the situation develops in Italy and are watching the Euro closely.

 

US Still In Trouble?

Even though the risk of the US defaulting on their debt obligations is all but gone, there are still some major issues they need to deal with in the near future.

In essense, the US debt plan that is soon to be passed only delays the inevitable – drastic action will still have to be taken if the US wants to turn around it’s economy and rebuild its fiscal strength.

If you look at the dates specified in the US debt deal and the way it’s structured, it seems as though both parties are trying to make fiscal reform one of the main battlegrounds during the next election in 2012.

 

Bank Of Japan To Ease On The Yen?

With the Yen skyrocketing against the US dollar in midst of the debt crisis, the Bank of Japan has stated that it is willing to ease it’s monetary policy if Tokyo intervenes to try and get everything back under control.

Even if Tokyo doesn’t intervene, the BOJ is still considering making some changes to ensure that the Japanese economy isn’t damaged due to its currency valuation.

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