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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Robert Douglas who wrote (2946)1/9/2001 10:39:56 AM
From: Henry Volquardsen  Read Replies (3) of 3536
 
I'm not tracking currencies close enough to feel comfortable giving trading advice. But I do feel with the softening of the US economy we should see some dollar weakness against the European currencies with sterling at the head of the list.

My one reservation comes from my concerns about what the ECB may do. All things being equal we should see dollar weakness against the Euro as well. The problem is that, as we have discussed in the past, the Euro has structural issues. Economic conditions between the constituent economies vary widely. In particular I think they are concerned about the core economies potential to slow in response to US dollar weakness. So I think they will respond to any concerted move over 95 my trying to restrain dollar weakness vs the Euro. This could have knock on effects vs the pound.
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