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Strategies & Market Trends : Currencies and the Global Capital Markets
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To: Henry Volquardsen who wrote (36)5/4/1998 11:57:00 AM
From: Oeconomicus  Read Replies (1) of 3536
 
Henry, any thoughts on the WSJ article this morning (page A18) on the likelihood of the Germans raising rates? The article argued that the Bundesbank may be aggressive on rates to bolster confidence in the Euro after that confidence seemed to be shaken by recent political infighting.

Of course, on the proverbial "other hand", Germany's domestic economy may still not be strong enough to justify raising rates (and risking damage to the domestic economy).

Which hand seems stronger and what could that do to the Dollar and the flow of money into Dollar assets?

Regards,
Bob
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