USD Trading Outlook: New York Open for October 9, 2008 : * There is talk now that the U.S. government is now considering taking an equity stake in U.S. banks to support the financial system. This power was provided in the bailout program. One problem is that markets are becoming impatient with the bailout program already even though it has not been implemented yet. * Global bourses have recovered today, but the extent of the bounce back has been disappointing for many so far. Trade in the U.S. today could be restrained due to the Yom Kippur observances. Weekly Jobless claims are due. * Dealers are looking ahead to the G7 and G20 meeting at the end of this week to see if key nations take coordinated structural actions to restore liquidity to the financial system. No key announcements before Monday would be a major disappointment. * The USD has eased vs. the EUR and GBP. The CHF is steady and the JPY has eased. The weaker JPY suggests that flight to safety repatriations have eased for a day. * Crude oil prices are steady. Weekly natural gas inventories are due. Gold is easier on reduced flight to safety demand. In line with the reduced tension theme, the commodity currencies (AUD and NZD) have recovered sharply. The CAD is steady. * Asian bourses mostly gained overnight. The Nikkei fell slightly. 10-yr JGBs eased. Key U.S. indices are seen opening higher. U.S. bond prices have fallen sharply.

Source