Today’s Market focus – U.S rescue plan

Further details over the U.S financial stimulus package are expected to be revealed later today (16:00 GMT) by the U.S Treasury Secretary Geithner.

The package aims to fight the deep recession by jump-starting  the US economy.

Logically thinking, the fact that there is a good chance for the rescue plan to be approved by the Senate should maintain positive sentiment in the Forex market- and when I say positive I do mean a more risk taking environment, with traders dumping safe haven currencies in favor of currencies such as the Australian dollar.

However, market hopes and rumors are working full time – last night the Euro dropped sharply against the dollar after its last rally to 1.3094. We could clearly sense a temporary comeback of risk aversion.

EURUSD  is now  trading back under 1.3 but looks more stable this morning -maintaining levels above 1.29 could mean a second test on the 1.3 level is in the cards.

Z.Georgi

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