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Strategies & Market Trends : Currencies and the Global Capital Markets
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To: Oeconomicus who wrote (37)5/4/1998 12:42:00 PM
From: Henry Volquardsen  Read Replies (1) of 3536
 
It's a possibility. There was a lot of talk yesterday about them raising rates in order to give the Euro a boost. The problem as you point out is that the economy remains weak and doesn't need a hike. I suspect that in a couple of days people will forget about the politics and focus on the fact that for at least the first four years you have a strong ECB head. So I don't think there will be any added pressure on the Bundesbank to raise rates and we will see a modest strengthening in Europe near term.
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