London Session – September 29, 2008 8:26 AM

The USD extended gains in London trading as the outlook for financial markets across the pond worsened.  This was exacerbated by the bailout of a major financial player by the governments of Belgium, Luxembourg and the Netherlands.  Meanwhile, the UK stepped in to nationalize Britain’s biggest lender to landlords.  These were ominous signs that the credit market mess threatens to inflict more damage on European financial systems than in the United States.  As such, EUR and GBP were crushed.  EUR/USD plunged about -150 pips to a close near 1.4350 while GBP/USD fell more than -250 pips into the 1.8010/15 zone. Full text »

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