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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (16334)11/19/2004 3:12:35 PM
From: Haim R. Branisteanu  Read Replies (2) of 116555
 
the process started over a year ago and it was out of the USD and into hard assets and other currencies.

Each time there is a relative small readjustment FX volatility increases mostly due to massive hedging of parties.

The sellers of hedges need volatility to cover the hedges they sold, so they induce this volatility

IMHO the USD is close to balancing out v. the EUR but not other currencies.

EZ will have a difficult time to deal with a 1.40EUR level, as they are already out priced themselves at 1.30
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