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Interest rate cuts across countries

The US Dollar suffered heavy losses against safe haven currencies and Gold but made gains against higher yielding pairs. NASDAQ was down 14 points (-0.83%) in the share market and the Dow Jones ended down -189 points (-2.00%).  Crude oil closed at $88.95 a barrel and Gold at $909 per troy ounce. United states jobless claims are forecast to improve to 475K against 497K previously. 

The Sterling was affected by various sources that created a volatile day of trading. The announcement of the bank rescue package was quickly overshadowed by the global coordinated interest rate cuts. UK rates were cut to 4.5% from the previous 5%. GBP/USD closed at 1.7520. At one point the pound fell to a seven year low against the Yen down 3.1% to Y172.48, then pared to Y172.82 following the rate cut.

The Euro also received a boost after interest rates were cut by 0.5% down to 3.75% from 4.25%. Stocks were unable to maintain gains and the Euro fell. Whereas against the USD, the Euro rose for the second consecutive session ending at $1.3640, still 14.7% lower than its high of $1.6308 reached in July.

The AUD suffered as a result of a huge sell order out of the US, breaking below 70 and not stopping until reaching the low 64's. AUD/USD closed at 0.6711. Looking ahead the unemployment rate is set to increase to 4.3% from its previous 4.1%.

As risk aversion soared on falling markets, Gold broke above $900 with investors flocking, and finally closed at $909.