Markets Await Final Stimulus Vote; G7 Also in Focus (Cross Country)

The markets are now anxiously awaiting the passage of the stimulus bill and equity prices are trading relatively flat. Sterling has given back much of its overnight gains this morning on the news that Lloyds subsidiary HBOS had lost Gbp8.5B last year.
MIDDAY SNAPSHOT & ANALYSIS OF SELECTED CROSS RATES

On the data front this morning, Reuters/University of Michigan confidence came in weaker than expected at 56.2 (60.6 expected), while the earlier release of Canada vehicle sales came in at -14.8% just under the consensus -15.0% estimates. The markets are now anxiously awaiting the passage of the stimulus bill and equity prices are trading relatively flat. The Fed has announced that it will expand all of its FOMC meetings in 2009 to two day affairs to allow for more time to discuss policy in the challenging market environment. Sterling has given back much of its overnight gains this morning on the news that Lloyds subsidiary HBOS had lost Gbp8.5B last year. UK Chancellor Darling in response to earlier rumors of pressures on him from Eurozone officials regarding the depreciated UK currency, has said that FX is only likely to be talked about in general terms at G7 and he also reemphasizes familiar rhetoric that the BoE targets the inflation rate rather than a particular FX level. UK PM Brown hasn’t done anything to help Sterling’s cause saying that a weaker currency has made Britain more competitive. The topic of protectionism seems to be of central importance at this weekend's G7 meeting.