USD Trading Outlook (20-10-2010)
U.S. Dollar Trading (USD) rallied broadly across the board, aided by tighter lending conditions in China. The People&rsquo s Bank of China moved to raise the official cash rate by 25 basis points, the first time since December 2007. The unexpected rate hike by China was cause for lack of investor confidence, prompting a negative showing on Wall Street, simultaneously relieving dollar weakness. The Dow Jones ended the day down 165.0 points (-1.48%), the S& P down 25.90 points (-1.67%), whilst the NASDAQ also ended lower 43.7 points (-1.76%). In domestic news, housing starts rose by 0.3% for the month of September, whilst Building permits slumped 5.6%.
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