I remember reading some speculation long ago that the Euro would likely sink to unthinkable levels before making a rally. Seems to be what's happening.
Read the note below (it is sent to me on an everyday basis, and if any here wants to subscribe, it is free), it gives you a bit of an insight of what the currency markets think.
Oh hell, another damned thing to read -gg-
In any event.... imagine where the Euro would be, if the jesters of the United Bananas of America would not be bitching as to who gets to seat as head Dunce for the next 4 years -gg-
************************************************************
As per your request, here is your FOREXNEWS.COM newsletter. For more news & analysis please visit our website at forexnews.com. To unsubscribe from this list, send an e-mail to forexnews-remove@forexmg.com.
FOREXNEWS.COM is sponsored by MG Financial Group (http://www.mgforex.com).
The "TIP OF THE MONTH" has been designed to help traders take advantage of the unique features of trading on Dealstation 2000. To read the latest article, please refer to: mgforex.com
FOREX NEWS NOW GIVES YOU THE LATEST TECHNICAL ANALYSIS as provided by Technical Research Ltd. forexnews.com
************************************************************
November 21, 7:00 AM: EUR/$..0.8490 $/JPY..110.08 GBP/$..1.4226 $/CHF..1.7912
Dollar Breaks Yen and Presures Euro by Jes Black
At 8:30 AM US Sept International Trade (exp -30.7 bln, prev -29.4bln) US Sept. Imports (exp n/f, prev 122.4bln) US September Exports (exp n/f, prev 93.02 bln) US October Fed Budget (exp 13.0 bln, prev 65.8 bln)
Markets will be looking to see if the September International Trade gap widened to $30.7 billion as forecasted due to reported declines in exports.
The U.S Treasury budget is expected to have fallen due to increases in revenues.
In European trading, the yen fell to new lows against both the dollar and euro after PM Mori survived Monday's no-confidence vote. In spite of Mori's doggedness, his victory has set off fears of prolonged political instability
which sent the Nikkei down 123.19 points, or 0.85%, to 14408.46, a 20-month low.
Financial markets were instead hoping that Mori would step down or lose the vote, thus paving the way for a more reform-minded leader. Consequently, the yen was sent reeling to 110.35/dollar and 93.60/euro in Tokyo trading.
The dollar also continues to pressure the euro despite its own domestic political battle and battered stock market.
The single currency, weighed down by slow Eurozone growth prospects and speculations that Bush may take the White House, fell to a two-and-a-half week low against the dollar of 0.8461 in New York trading Monday before closing the session above 85 cents. Currently, the euro is hovering around $0.8490, as markets remain wary of another possible ECB intervention. Cable and Swissy are steady at 1.4226 and 1.7912 respectively.
This morning the German IFO business climate index fell to 97.2 from 98.0, its lowest level since October 1999. The fall in the October index shows that the economy is slowing but does not reveal signs of a steep downturn.
This has pushed the DAX up 44.77 points, as the weaker IFO reading is likely to reinforce expectations that the ECB will hold off with further interest rate hikes in the near future.
U.S. stocks are seen volatile this morning as dealers expect trade volumes to thin out before Turkey-day and for investors to remain edgy about technology shares. A decision by the Florida Supreme Court on hand counts
might take some uncertainty out of the market but investors on both sides of the Atlantic will be weary. Meanwhile, the FTSE and DAX are up slightly this morning, helping reverse yesterday's heavy loses after the Nasdaq tumbled 151.55 points, or 5.01 percent, to 2,875.64, and the Dow dropped 167 pts to close at 10462. Yesterday, the Nasdaq slid below the key 3,000 level for the third time this year and is now down 29 percent on the year, its lowest point since October 1999. The Dow futures are up 40.00 and Nasdaq up 60.00 as some investors may be looking to buy "on the dip."
______________________
Notes:
* Cable = British Pound.
* The Japanese are having a tizzy of their own, and look what is happenning to them.
* The Currency market are speculating that Bush will be the winner. [how I wish the politicians would have the clarity of a free market !]
* I also think thay are giving strength to the dollar, in spite of the Bozo ~vs~ Kaliman tussle, because of the prospect of a reduced, (hopefully, extinguished deficit), and somehow, (comparatively speaking), a stronger economic environment.
* ALthough I have now turned less optimistic, the above does give me a ray of hope --a contrary indicator, or mere confussious speak ? -ggg- |
