Geithner Delays Speech

Currency markets are in limbo while waiting for US Treasury Secretary Timothy Geithner to announce the details of the bank rescue plan. Interbank Forex markets were affected by the delay with many interbank forex brokers taking a wait and see attitude. President Obama is expected to address the nation on Monday night but Geithner’

s delay has resulted in a loss of confidence among interbank forex brokers and some investors.

Pressure On Dollar

Many analysts believe that Geithner’

s plan will be nothing more than a compromise in addressing the issue of toxic assets that have plagued banks since the beginning of the global economic crisis. This has put pressure on the dollar on interbank forex markets but the Japanese Yen has seen a rise after data revealed a worsening economic picture and had some interbank forex brokers seeking safe haven.

Waiting For Geithner

Last week saw a return of risk appetite as stock markets rose and many investors took advantage of the opportunities offered by higher yielding currencies on interbank forex exchanges. Market watchers are awaiting both Geithner’s remarks and Tuesday’

s Senate vote on the $827 billion dollar bailout package. Most interbank forex brokers expect the senate version to pass despite Republican opposition.

Compromise

Without the injection of government funds to state and local governments the country faces “a vicious cycle of layoffs, falling home values, lower property taxes, more layoffs,” according to Lawrence Summers, chairman of the White House National Economic Council. The Senate version of the package cut some funding to gain Republican votes necessary for passage of the package.

Interbank forex brokers will be monitoring the news media on Tuesday and watching the effects both announcements will have on global interbank forex exchanges. Hopefully the news will be good for a change!