Friday, 9 October 2009

المتداول العربىNew Treasury Secretary Understands Currencies

المتداول العربىNew Treasury Secretary Understands Currencies
What does the appointment of New York Federal Reserve President Timothy Geithner as Treasury Secretary mean to forex traders? To answer this question, it depends on which side of the Dollar you fall in. Geithner worked in the Treasury Department under Bill Clinton, which means he is well versed in the Strong Dollar policy.
It is not clear whether such a policy will be implemented under the Obama administration, which may be counting on the export sector to fill the gap created by a decline in domestic consumption.
Regardless, the consensus among analysts is that Geithner understands currency markets, and is not likely to take steps that will rattle them.
This would mark a sharp break from his predecessor Henry Paulson, whose bungling of the economic bailout has given rise to record levels of volatility (read: uncertainty) in forex and financial markets.
The Australian reports:
"For all the currency traders out there, this means he was in charge of US dollar policy and is steeped in the nuance of the currency markets...Unlike during rookies Paul O'Neill or John Snow's tenure, we won't get many mistakes to make easy money," said [one analyst].