Finally - A Concerted Central Bank Action

When was the last time you remember a concerted effort of central banks in the market?
*For central banks aim for a joint intervention is simply to calm the markets. This is exactly what happened in the year 2000, and of course it could happen again whenever the real need arises. Intervention occurs when a central bank steps into the open market in an attempt to strengthen or weaken its own currency just like the intervention in 2000 was a concerted effort by the Group of Seven (G7) nations to stabilize the Euro.

*The Federal Reserve, the European Central Bank, the Bank of England and the central banks of Canada and Sweden effectively reduced primary lending rates by a half percentage point. Switzerland also cut its benchmark rate, while the Bank of Japan endorsed the moves without changing its rates. Thisoccured in October 08, 2008. And apparently, the Chinese central bank joined the effort — without explicitly saying it was doing so by reducing its key interest rate and lowering bank reserve requirements to free up cash for lending.
For a complete analysis supporting our Market view TUG OF WAR - USD, EURO & GBP in a Fundamental stand point visit http://www.megatrade101.com/ for the continuation of this report.