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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (21939)	8/3/1999 8:42:00 PM
From: Don Green	Respond to of 99985

Wednesday, August 4, 1999 Forex Outlook: Intervention Unlikely To Prop Up Dollar TOKYO (Nikkei)--The rising yen will not be turned around by the disclosure that the heads of the monetary authorities in Japan and the U.S. spoke by telephone about their economies and currency market trends, predicts Masao Nishizaki, assistant general manager of the foreign exchange and international treasury division at Sakura Bank. Finance Minister Kiichi Miyazawa, who spoke with U.S. Treasury Secretary Lawrence Summers, mentioned the conversation Tuesday because he wanted to see how the market would react to the news, Nishizaki points out. For interventions to have any significant effect, the market needs to be overwhelmingly tilted toward long-yen/short-dollar positions, he adds. But the fact that the announcement boosted the dollar by as much as 1 yen indicates that the market is not committed in one direction, so any central bank yen-selling will not have much of an effect, Nishizaki says. (The Nikkei Financial Daily