Waiting on Stimulus Details

Markets have been waiting for US Treasury Secretary Timothy Geithner to unveil the proposed bailout plan. Originally the announcement was supposed to take place on Monday but an article in USA Today reported that Mr. Geithner will postpone the announcement until Tuesday. The Obama administration said that on Monday they will focus on convincing the Senate to pass the economic recovery package. Currency markets have also been waiting for Geithner’

s announcement which could either expand or contract Forex opportunities.

Geithner Meets With President’s Working Group on Financial Markets

Geithner met with a little known group known as the President’

s Working Group on Financial Markets. The group was formed in 1987 after a stock market crash and focuses on government response to financial market crises. Markets have been in a sort of limbo since Friday and all eyes are on Washington. It is hoped that the stimulus package will provide investors with new Forex investment opportunity.

Risk Appetite Up

Last week was an active week for Forex trading. The Bank of England cut rates to a 300 year low, the European Central Bank did not cut rates as expected, and the US released dismal employment data. Markets were active and provided investors with several Forex investment opportunities. The Japanese Yen and the US dollar were slightly down and investors took advantage of the Forex opportunities offered by the Aussie and New Zealand dollars. The troubled British Pound rose after the announcement of rate cuts by the BOE.

There was a slight return to risk appetite which opened Forex opportunity to many investors. Risk aversion has been the dominant theme during the global economic crisis and any return to risk appetite is good news to investors.