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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: Chip McVickar who wrote (283)11/21/2000 3:03:55 PM
From: irlon  Read Replies (1) of 12411
 
Interest rate raising cycle is at an end here. Data shows inflation nonexistent. In fact, one of the biggest building societies (mortgage providers) today announced a cut in the mortgage rate. They wouldn't have done it if they didn't think that the next move is going to be down.

Due to the budget surplus the current Labour Government is about to embark on a multi-billion pound spending spree on social programmes which they will time to secure a second term in office. Which I don't think is a particularly good thing in the view of creeping economic slowdown.

I personally think the dollar will remain broadly unchanged in the foreseeable future relatively to the Euro and pound. (Well maybe a bit weaker). I don't think Europe is about to show strong signs that it is going to outperform the US economically.
BWDIK

I
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