Friday is looking up for risky currencies, as President Bush will announce a plan to help US homeowners who are at risk of defaulting on their mortgage loan. This has eased the concerns of many forex traders who have been resting their money in low-yield currencies like the yen. Now, with the subprime mortgage issues being addressed by the US government, high-risk investments will resume. Reports Reuters:
"There is some reaction to Bush’s plans to help out people
who are in trouble with their mortgage payments and markets are
also expecting some comments from Bernanke this afternoon
regarding rate cuts. Both these factors are helping the carry
trade," said Carsten Fritsch, currency strategist at Commerzbank
Corporates & Markets in Frankfurt.
Read more: High yielders recover ahead of Bush, Bernanke
Original post by Amy Cottrell and software by Elliott Back
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