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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?


To: Hawkmoon who wrote (2192)10/18/1999 3:54:00 PM
From: Henry Volquardsen  Read Replies (1) | Respond to of 3536
 
Ron,

I subscribe to both theories.

Re Euro I think their concerns are in both directions. The French are particularly useful, and amusing, to watch in this regard. On one hand they want a weak Euro in order to encourage exports. But on the other hand a strong currency is a matter of national pride, particularly if a strong Euro could supplant the dollar and show up the Anglo-Saxons. So they are trapped between ego and self interest and at par their egos said enough is enough -g-.

That arguement about Japan has been around for a while. They need more liquidity and are concerned about the possible impacts so they have engineered a stronger yen to minimize the impact once the reflation begins. It is a plausible theory.

Henry