Geithner Delays Speech

The US dollar weakened slightly Monday February 9th amid uncertainties about the Obama administration’s financial stimulus package and bank rescue package. Treasury Secretary Timothy Geithner had planned to announce details of the plans on Monday but delayed his remarks until Tuesday leaving markets in limbo and limiting Forex opportunities.

Compromise Needed

The Obama administration is pressing legislators to settle their differences and agree on the much needed rescue plans. During the past few months the US dollar has provided both a safe haven and Forex opportunities for investors. The US is seen as very aggressive in addressing the economic crisis and most analysts believe that the US will be the first industrialized nation to recover from the global recession.

Geithner’s Delay Hurts Dollar

Throughout the crisis the US dollar has benefited from its safe haven status as has the Japanese Yen. Geithner’s delay in announcing the details of the plan has hurt the dollar and the Forex opportunities it provides. Omer Esiner, of Ruesch International stated, “I think it did highlight the troubles the Obama administration faces in finding non-partisan support for the stimulus package. And that has pressured the dollar.”

Elevated Risk Appetite

Last week saw elevated risk appetite and increased Forex opportunities. Economic data from the UK and the Euro Zone helped both the Euro and Pound to rise slightly for the first time in weeks. The Yen also was under pressure as investors sold off the Yen and took advantage of the Forex opportunities offered by higher yielding currencies. The Bank of England cut rates to a historic low which helped the troubled Pound in currency markets.

Tuesday will be a busy day for forex trading. On Tuesday the details of the US’s economic rescue plan will be announced. Currency markets will respond and investors will be watching for Forex investment opportunities related to Geithner’s remarks.