Forex Investment and Currency Trading

The Treasury reported that the federal budget deficit grew to $164.4bn in November, in line with expectations. Outlays rose to $309bn, an increase of 24% y/y, as the government allocated additional funds to the economic recovery programs. The Treasury purchased $23.2bn in agency mortgage-backed securities (MBS) in November, up from $21.5bn in October. Total commerce and housing related outlays summed to $95bn. Receipts fell by 4.2% y/y to $145bn in November as weaker economic growth led to a decline in corporate tax receipts and personal income taxes. On a 12-month basis, the deficit increased to $701bn from $635bn, consistent with the view that the deficit will balloon to $1.3tr in fiscal year 2009.