Daily FNArena News - FYI

The RBA is widely expected to raise interest rates by 25 basis points on Wednesday following the Cup.

A Dow close of +27 last night belied the extreme volatility throughout the session. Gold rocketed through US$800/oz.

With a favourable interest rate differential and strong commodity prices the Aussie dollar has gained against the greenback, but TD Securities suggests parity is on the cards in 2008.

The Dow fell 362 points last night as the financial sector woke up to the fact there’s still a credit crunch going on.

The Fed gave the market what it wanted but indicated that will be all for now. Wall Street still loved it. The Dow rose 137. Oil hit US$95. Gold hit US$800.

Weekly musings by your editor. The decline of the US dollar. When is the trend your friend?

Oil was the big loser overnight while stock markets began to doubt a Fed cut tonight.

The Dow was once again positive as traders set for a rate cut on Wednesday.

OPEC wants to switch to a basket of currencies while Gulf states are concerned about their greenback pegs.

There is a wealth of US economic data being released this week but it will all be overshadowed by one number – that of the Fed funds rate after Wednesday night.