US Financials Still Under Pressure
21 April 2008
The Bank of America (BoA) reported less than stellar earnings this morning, missing Wall Street targets of 45 cents per share profit by 19 cents. With the markets waiting for the earnings announcement to serve as an indicator of the US financials, the fall in earnings has put the US Dollar under pressure. With the US financials continuing to under perform, many investors are electing to place their money outside of US equities in better performing vehicles. The US Dollar Trade Weighted Index, a measure of US Dollar strength against a basket of currencies, also fell today, influenced by the soft earnings report as risk appetite weakened.