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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: nickel61 who wrote (1328)	4/26/2000 4:37:00 PM
From: John Pitera	Respond to of 33421

glad to provide some input. There is concern that the ECB is not tightening quickly enough, for some. And More importantly some Japanese institutions seem to be rethinking the placing of a greater Percentage of there assets in the Euro, The EURO is massively oversold and there should be plenty of buyers waiting near .9000 . the lows have been down in the .9165 area. A snap-back rally should be in the making. -------------- ECB Chatter: There has been absolutely no reaction on the part of the euro to a Market News International report, which cites a senior ECB official as suggesting that the central bank will raise rates 25 bp at tomorrow?s meeting. The source noted that loose monetary conditions in the region need to be corrected, but suggested that a more aggressive 50 bp move would dampen economic recovery. While a 50 bp tightening would probably a bit much, there is some fear that the ECB may be falling into the same trap as the Fed, where less aggressive rate hikes are easily priced into the market. 10:26 ET 30-year: +7/32..5.920%....GNMAs: -1/32....$-¾: 106.51....Euro-$: 0.9216 All Kinds of Help: The firmer tone in dollar-yen as of late may be somewhat of a function of the recent plunge in the euro. Not only have Japanese institutions been reducing their overweight euro positions, they have also been reconsidering plans for allocating a greater portion of their foreign investment towards the single currency at the expense of the dollar. While the euro-denominated assets made up roughly 30% of institutional foreign investment portfolios at the end of 1999, plans were to increase that ratio to 40 ?45% this year.