ECB and BoE down their main rate

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As traders had expected, the European Central Bank and the Bank of England decided today to lower its main lending rate, respectively, a half-point and a half and to cope with the recession . Such a measure has been permitted through the alleviation of inflation, which is not the case in Iceland, a country hard hit by the financial crisis and faced with inflation exceeding 20% d According to the central bank.

Obviously, the announcement of a sharp drop in rates also weighed on round the course of the pound sterling, which was abruptly collapsed today before they resume shortly before the close of trading.

Across the Atlantic, the euphoria is no longer really necessary. While the dollar is still well on the foreign exchange market, especially in the single European currency, but the problems accumulate as illustrated by the avalanche of negative figures made public this week. The new administration must quickly tackle the task, probably before the inauguration official Barack Obama, to prepare a transition that looks difficult because of the context of financial crisis.

The traders scrutinize including the selection of the successor to Henry Paulson, knowing that the names of members of the former Clinton administration move past few days. At this stage, Barack Obama should reassure investors and probably reiterate loud and clear, as has often been George Bush, his preference for a strong dollar policy.( Finance Information City )