The dollar rose against the euro and yen on Monday as President-elect Barack Obama is seeking a largerthan-
expected 300 billion in tax cuts and US construction spending dropped less than expected. The yen fell
after breaking important technical levels despite lower US stocks. The recent narrowing of credit spreads and
announced large US stimulus limit the downside for the economy and reduce investors' risk aversion. The
euro, yen and Swiss franc were the weakest...
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The Euro fell almost 400 pips against the Dollar and the Pound as expectations increased that the ECB will have to cut rates more than expected as weak data keeps coming in. The Pound rebounded on the BOE's plan to expand lending to banks, the Dollar saw strength on Obama's fiscal plan and the Loonie gained on rising oil prices...
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US ISM Manufactuing Index
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Expected
Actual
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35.5
32.4
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US manufacturing ended 2008 in a grim state, falling to its lowest level since June 1980. The index fell 3.8 points to 32.4in December from 36.2 in November. All the main sub-gauges showed further deterioration with new orders down to their worst level since 1948. The prices index continued to fall showing an ongoing retreat in inflationary pressures...
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