Daily FNArena News - FYI

Morgan Stanley analysts want to pre-warn the market that global currency intervention is a looming threat.

Asia called the Dow down 2% yesterday but got only 0.4% last night in another volatile session.

…a supermodel is refusing payment in the currency.

The emergency board meeting on the weekend has resulted in Citi admitting to a further US$8-11bn in write-downs to follow.

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?