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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: LBstocks who wrote (2802)	5/4/2000 11:08:00 PM
From: J.T.	Respond to of 19219

Dollar/Euro ... From Bloomberg: Yen Steady vs Dollar Before Payrolls, Euro Up From Record Low By Angela Jones Sydney, May 5 (Bloomberg) -- The yen was little changed against the U.S. dollar before figures expected to show the U.S. jobless rate fell to a 30-year low, suggesting the economy is robust enough to warrant higher interest rates. Higher interest rates boost the appeal of a nation's currency. The yen surged against the U.S. dollar yesterday, ending a three-week decline, as pre-set orders from Japanese exporters to sell the U.S. currency at about 109.50 pushed it lower. Against the yen, the dollar was little changed at 108.06 yen from 108.03 yen yesterday, having earlier fallen as low as 107.96 yen. It fell as low as 107.71 yen yesterday after rising as high as 109.61 yen. The U.S. dollar fell to 89.21 cents per euro from 88.95 cents per euro yesterday, having earlier risen to a record of 88.53 cents per euro. ``Everyone in currency markets is waiting for payrolls -- a strong payrolls number would see yen up to 109,'' said Jo Masters, currency strategist at Macquarie Bank Ltd. The U.S. jobless report is expected to show the nation's jobless rate fell to a 30-year low of 4.0 percent, according to a Bloomberg News survey. That's likely to solidify expectations the Federal Reserve will lift its benchmark rate as much as 50 basis points on May 16. Speculation of a higher U.S. rates helped push the dollar to a two-month high of 109.61 yen earlier this week. The U.S. currency then fell against the yen as Japanese exporters sold dollars, traders said. Masters said yen strength may be exaggerated in illiquid trade as Japan's financial markets are shut for the Golden Week holiday and will reopen on Monday. Feeding speculation the Fed will soon raise rates a half- percentage point, twice the boost previously anticipated, were reports yesterday that showed rising labor costs and slower gains in worker productivity. The U.S. government tomorrow will likely report that the nation's jobless rate fell to a 30-year low of 4.0 percent, according to a Bloomberg News survey. The strength of the U.S. economy and higher U.S. interest rates relative to Europe have powered the dollar higher against the euro, by drawing investors from Europe. A half-point Fed increase would bring the U.S. benchmark overnight rate to 6.5 percent, compared to the ECB's benchmark rate of 3.75 percent. ¸2000 Bloomberg L.P. All rights reserved Best Regards, J.T.