Daily Forex Snapshots - Asian Session – Markets higher as U.S Government seizes Fannie Mae and Freddie Mac

EURUSD traded higher in the Asian open as markets reacted to the US government’s announcement on Sunday that they are compelled to takeover troubled mortgage giants Fannie Mae and Freddie Mac. EURUSD traded as high as 1.4427 in early morning trading as the dollar comes under pressure from this news and the high probability Hurricane IKE could make landfall in the coming days. There are two schools of thought on how the U.S government has handled the Fannie and Freddie bailout. Some say it will provide the much needed stability in the housing market the US economy needs, sending the dollar higher, while others say this action is a confirmation of the dismal and dire state of the economy – a bearish signal for the dollar.

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