USD Consolidates After The All Time Low.

Yesterday, the greenback fell to a record low against the EUR on the back of the Growth Fed Outlook index. It dropped down to a new low against the EUR on Thursday after the EUR currency broke through the $1.43 mark on reports from Washington that growing economic weakness was increasing jobless claims, and at the same time The U.S. currency fell 0.9 percent against the JPY touching 115.29, the lowest since Oct. 2. This unexpected jump in the number of workers filing new claims for jobless aid is an additional signal of the continuation of the weakening US labor market. The Labour Department said that the new claims for unemployment aid climbed by 28,000 last week.

Also yesterday a separate report showed that the Bank of America’s third-quarter net income fell to $3.7 billion, its Revenue fell 12 percent to $15.93 billion and its shares had fallen 6 percent this year. Bank of America said it placed aside $2.03 billion for credit losses, up more than 73 percent from a year earlier, and nonperforming assets doubled to $3.37 billion. It mentioned that the weakened housing conditions were mainly responsible for some of the increases. Also the corporate and investment banking profit dropped by 93 percent to $100 million from $1.43 billion, hurt by $717 million of the trading and sales losses.

At the moment the global investors are divided as to whether the Fed will lower its key interest rate in its next meeting on Oct. 30-31. Concerns about the outlook for the U.S. economy have increased in the last few days with the weaker-than-expected US currency. On the basis of this major event many investors have increased their speculation whether the Federal Reserve will cut interest rates again in order to shore up the economy.