Dollar Weakened on Fed's Lending Facility

Tuesday morning the Federal Reserve and the Treasury announced a new plan to make borrowing easier for consumers. The new facility includes $800B trying to revive lending and lowering borrowing costs.

Recent attempts seem to have positive effects. Today's report showed that the average mortgage rates dropped in the U.S. most in seven years and the number of applicants for that mortgages rose in November.

Dollar weakened and gold rose in response to the news; not a surprise considering falling interest rates, or at least the possibility of such fall, and its negative effect on rate of return of dollar-denominated assets.

Also on Tuesday, OECD released its economic outlook for the members. As it was expected the report has nothing but concerns about the economic slowdown and need for further attempts to revive growth. I made profit by selling Euro against dollar before the report and closing the position near the pivot.