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

To: Chip McVickar who wrote (1543)	5/9/2000 2:54:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

obviously the USD has been a one-way ride higher, and few are short it so that could lead to a reversal, what is needed for that to occur is a psychological inflection point towards the greenback. We don't seem to be there yet. One thing to realize is that people are looking around Globally at yield investments to preserve Capital and the USD is giving more bang for the buck. --------- ---06:57 ET 30-year: -2/32..6.248%....$-¾: 109.36....Euro-$: 0.8954 Overnight FX Summary : The dollar continues to look firm both against the euro and the yen as mounting speculation of a 50 bps Fed rate hike suggests a further widening of the interest rate differential. Dollar-yen has furthered its ascent from the 107.27 low of 5 May back towards the 109.61 high of the major move ? now at 109.38. Sellers are seen on the approach of 109.60 but, in the event it breaks, gains to the 110.60 area are envisaged. The euro-dollar is on the low of its 0.8950 ? 0.9000 range for the day and looks set to test and break Monday?s 0.8918 low. This would break the rising series of day lows since May 4, ultimately signalling that major new lows for the move are at risk ? possibly towards the 0.8740 region...------

To: Chip McVickar who wrote (1543)	5/9/2000 3:55:00 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

This is noteworthy--Asia plan to protect markets By Peter Montagnon Published: May 7 2000 15:16GMT \| Last Updated: May 8 2000 02:10GMT Economic co-operation in Asia moved into a new phase as the region's leading governments agreed at the weekend to press ahead with a Japanese proposal for a network of currency swaps to bolster their defences against the kind of speculative attacks that provoked the 1997 economic crisis. The agreement, reached at a meeting of finance ministers of Japan, China, South Korea and the 10 countries of the Association of South-east Asian Nations, was "a very significant" step forward, said Kiichi Miyazawa, Japan's finance minister. Crucially it came after support from China, which has reserves of more than $150bn but had been thought reluctant to contribute to a support network. Xiang Huaicheng, finance minister, said China backed the idea "because it contributes to the financial and economic stability of this region". However, no decisions have been taken on the final size of the network, on the need for collateral or on the conditions under which participants will be able to draw on it to support their currencies. The ministers commissioned the Asean secretariat to come up with a technical blueprint that will answer these questions. Japanese officials said the basic plan was to build incrementally on the modest existing arrangements between Asian countries. The five largest Asean economies - Thailand, Malaysia, Singapore, Indonesia and the Philippines - would increase their existing $200m swap arrangements, possibly increasing them to $2bn. The three east Asian countries would consider establishing swaps among themselves, adding to the one existing arrangement between Japan and South Korea. They would also look at extending swap arrangements with the Asean countries, which currently exist between only Japan and Malaysia. The idea was to establish standard conditions, the Japanese officials said. There would also need to be a surveillance system because peer pressure was an important weapon for warding off crisis. Although elaboration of the details would take time, analysts said the deal was significant because it underlined a new determination among Asian countries to enhance their co-operation in the wake of the regional crisis. The growing links between east and south-east Asia were particularly important, said Neil Saker of SG Securities. Significantly, the initiative also drew some support from the US which shot down an earlier Japanese plan for an Asian Monetary fund.