The euro strengthened over the US dollar by 0.35 cents on Monday to close at the 1.3002 as uncertainty over the announcement of details for a fiscal stimulus package and further bank bailout surfaced. At 16.00 GMT today there will be an announcement by Treasury Secretary Timothy Geithner about the details of the new bailout plan, and the market will remain cautious until the particulars are confirmed. Investors speculate that the new plan will move away from the idea of having a stand alone, government backed 'bad bank' and instead propose a public-private partnership that could buy up to $500 billion worth of distressed assets.
In today's trading the euro has fallen significantly against the dollar, reaching as low as 1.2812 as news that Russian banks have asked their government to try and renegotiate the repayment of up to $400 billion worth of debt to foreign banks. This hurt the euro as Russian banks have very close ties with their European neighbors who may be significantly exposed to these debts. Later today ABC/Washington Post Consumer Confidence figures are announced in the US as well as details of the new bank bail out plan. There are no major economic announcements in the eurozone today.
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