Another day dawns but the slow-motion train wreck that is the US credit crisis continues to unfold, just as it has without relent for the better part of a year. Fannie and Freddie are still on a spit, being broiled by the market as investors fear their equity will be wiped out by a government bailout. Compounding woes for the dollar are firming commodity prices as oil rebounds to the $117 area and gold extends its rebound another $15. Selling by Asian central banks helped cap overnight rallies above 1.4825.
Weekly jobless claims are due out next for the market, expected to dip to the 435,000 area from 450,000.