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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Robert Douglas who wrote (353)7/14/1998 11:24:00 AM
From: Henry Volquardsen  Read Replies (1) of 3536
 
Robert,

I don't know what the nature of your disagreement with Lee is but if it was caused by discussions on other threads I would like to ask, with all due respect, that you do not carry it onto this thread. This thread as functioned very well as a forum for some diverse viewpoints and given your stated history with currency trading I believe many who monitor the thread would be interested in your contribution.

FWIW I don't believe Lee was dismissing Lindsey by labeling him a hawk. It is fairly common practice to use catch labels for Fed officials to keep track of their overall viewpoint. I know of several reputable analysts who publish a running tally of hawks, doves and swing votes on the Fed.

My own personal view on the Fed at the moment is that they are nervously watching the conflicting influences of international and domestic pressures. It is pretty clear that if there were no concerns about the impact on Asia, the Fed would have tightened already. However despite the recent convenient interpretations of the Japanese election I believe we are still in for a very long workout of Asia's problems. As a result I believe the Fed is going to remain in a position where they feel constrained by the risk to Asia. I personally am not expecting any action to raise rates in the foreseeable future. I therefore am fairly bullish for US bonds and as a consequence belive the dollar will continue to strengthen against the yen.
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