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    Good morning, The U.S. dollar strengthened against the euro as traders continue to bet that the European Central Bank will cut interest rates at their meeting this week, a move that would likely lead to decreased demand for euro-denominated assets. The euro was also hurt by news that the German government plans to implement a large stimulus plan to bolster its flagging economy. This confirmation of German economic woes is particularly detrimental to the euro as Germany is the euro zone's largest single economy. The dollar's gains against the euro were furthered by suggestions that Spain may have its credit ratings lowered in the short term. The dollar also gained ground against the British pound after U.K. economic data released showed home and retail sales at multi-year lows. The surge of weak economic data released in the U.K. recently has led many to expect that that the Bank of England will lower rates beyond their current historic lows. The Japanese yen benefited from a slide in U.S. equities that, once again, made the currency a safe haven for risk-averse investors. However, investors now expect that continued economic uncertainty, coupled with low interest rates in Japan will cause the yen to fall as investors borrow money in Japan to invest in higher-yielding economies. Economic data out today includes the U.S. Trade Balance and ABC Consumer Confidence numbers.

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    Good morning, The U.S. dollar strengthened against the euro as traders continue to bet that the European Central Bank will cut interest rates at their meeting this week, a move that would likely lead to decreased demand for euro-denominated assets. The euro was also hurt by news that the German government plans to implement a large stimulus plan to bolster its flagging economy. This confirmation of German economic woes is particularly detrimental to the euro as Germany is the euro zone's largest single economy. The dollar's gains against the euro were furthered by suggestions that Spain may have its credit ratings lowered in the short term. The dollar also gained ground against the British pound after U.K. economic data released showed home and retail sales at multi-year lows. The surge of weak economic data released in the U.K. recently has led many to expect that that the Bank of England will lower rates beyond their current historic lows. The Japanese yen benefited from a slide in U.S. equities that, once again, made the currency a safe haven for risk-averse investors. However, investors now expect that continued economic uncertainty, coupled with low interest rates in Japan will cause the yen to fall as investors borrow money in Japan to invest in higher-yielding economies. Economic data out today includes the U.S. Trade Balance and ABC Consumer Confidence numbers.

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    148 views1 page

    Daily Market Report

    Uploaded by

    International Business Times
    Good morning, The U.S. dollar strengthened against the euro as traders continue to bet that the European Central Bank will cut interest rates at their meeting this week, a move that would likely lead to decreased demand for euro-denominated assets. The euro was also hurt by news that the German government plans to implement a large stimulus plan to bolster its flagging economy. This confirmation of German economic woes is particularly detrimental to the euro as Germany is the euro zone's largest single economy. The dollar's gains against the euro were furthered by suggestions that Spain may have its credit ratings lowered in the short term. The dollar also gained ground against the British pound after U.K. economic data released showed home and retail sales at multi-year lows. The surge of weak economic data released in the U.K. recently has led many to expect that that the Bank of England will lower rates beyond their current historic lows. The Japanese yen benefited from a slide in U.S. equities that, once again, made the currency a safe haven for risk-averse investors. However, investors now expect that continued economic uncertainty, coupled with low interest rates in Japan will cause the yen to fall as investors borrow money in Japan to invest in higher-yielding economies. Economic data out today includes the U.S. Trade Balance and ABC Consumer Confidence numbers.

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    Corporate & Investment Banking Daily Market Report

    Currency Risk Management

    13-Jan-2009 8:01 AM EST

    Major Financial Market Information

    3m 1 Day 10Y Gvt 1 Day Equity Last 1 Day 1 Day


    LIBOR Change Change Change Change
    US 1.09% -0.07% 2.31% -0.11% DJIA 8,474 -1.46% Gold $822.10 -$21.30
    Germany 2.61% -0.04% 2.97% -0.07% DAX N.A. N.A. Silver $10.69 -$0.40
    Japan 0.76% -0.02% 1.24% -0.06% Nikkei 8,837 -0.45% Oil(WTI) $37.67 -$3.04
    Great Britain 2.30% -0.03% 3.15% -0.03% MIB30 19,977 -3.40% CRB $256.42 $4.03
    Italy 2.61% -0.04% 4.37% -0.02% TSE30 8,793 -3.21% 30YTBond 3.00% -0.09%
    Canada 1.71% -0.06% 2.76% -0.07% CAC40 N.A. N.A.
    France 2.61% -0.04% 3.54% -0.03% SMI N.A. N.A.
    Switzerland 2.61% -0.04% 2.22% -0.02%

    Good morning,

    The U.S. dollar strengthened against the euro as traders continue to bet that the European Central Bank will cut interest rates at
    their meeting this week, a move that would likely lead to decreased demand for euro-denominated assets. The euro was also hurt by
    news that the German government plans to implement a large stimulus plan to bolster its flagging economy. This confirmation of
    German economic woes is particularly detrimental to the euro as Germany is the euro zone's largest single economy. The dollar's
    gains against the euro were furthered by suggestions that Spain may have its credit ratings lowered in the short term.

    The dollar also gained ground against the British pound after U.K. economic data released showed home and retail sales at
    multi-year lows. The surge of weak economic data released in the U.K. recently has led many to expect that that the Bank of England
    will lower rates beyond their current historic lows.

    The Japanese yen benefited from a slide in U.S. equities that, once again, made the currency a safe haven for risk-averse investors.
    However, investors now expect that continued economic uncertainty, coupled with low interest rates in Japan will cause the yen to
    fall as investors borrow money in Japan to invest in higher-yielding economies.

    Economic data out today includes the U.S. Trade Balance and ABC Consumer Confidence numbers.

    Bhav Dhanak
    bhav.dhanak@wachovia.com

    Disclaimer: The information provided in this document has been obtained or derived from sources believed to be reliable. Wachovia
    Corporation and its affiliates, including Wachovia Bank, N.A., do not guarantee its accuracy or completeness, nor does Wachovia Corporation
    or any of its affiliates, including Wachovia Bank, N.A., assume any liability for any loss that may result from the reliance by any person upon
    any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are
    not intended as an offer or solicitation with respect to the purchase or sales of any security or any foreign exchange transaction, or as
    personalized investment advice. Securities and foreign exchange transactions are not FDIC-insured, are not bank-guaranteed, and may lose
    value.

    CHARLOTTE - HONG KONG - LONDON


    (800) 733-5554 (704)374-2783
    website: www.wachovia.com/foreignexchange

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