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

To: John Pitera who wrote (1931)	6/1/2000 1:48:00 PM
From: John Pitera	Respond to of 33421

Euro on the offered side today. ----05:06 ET 30-year: -2/32..6.012%....$-¾: 108.67....Euro-$: 0.9326 Buy the prospective dip : For all the talk of a better bid euro lately, the single currency has not performed so well in today?s thin market conditions. The unit looks are little overbought from a technical perspective with the 14 day RSI now turning down from a major level of reversal seen back in early Jan. A fall back towards the 2-week uptrend and key support area of 0.9200 is possible on a break below 0.9273. However, at this point renewed buying from those lows is likely to develop. The longer range daily MACD remains firmly in buy mode and the 3 and eight day moving averages are aligned and rising. In the event of a break below the 0.9200 area, a more sustained weakening is possible but until then gains towards the major long term downtrend at 0.9500 are envisaged. 04:59 ET 30-year: -2/32..6.012%....$-¾: 108.68....Euro-$: 0.9323 UK PMI weakens, led by export orders - but not for much longer: The impact of the UK pound?s recent depreciation against the dollar and euro has yet to be felt in the manufacturing sector if the latest May PMI report is anything to go by. The overall output index fell from 52.1 in April to 50.9 in May ? a level which still indicates expansion albeit very modest. The new export orders component fell sharply in May to 41.8 from 46.8 in April ? taking it to the worst level in 9-months. Nevertheless, with Sterling/euro down 9% from its May 4 peak (of 1.7590 at around 1.60 currently), the export order book should soon start to pick up. At that point or sooner the BOE will feel more comfortable about raising rates though its quite likely they will move sometime after the ECB inorder to force a further drop in sterling. 04:26 ET 30-year: -3/32..6.013%....$-¾: 108.71....Euro-$: 0.9338 Case for reform of UK's MFR likely to succeed but will take time to enact: According to a report in today?s FT, UK ministers are expected to begin consultations on the Minimum Funding Requirement (MFR). The probability is that pension funds will eventually be allowed to diversify out of government fixed income into high grade corporate bonds. However, even if agreement on reform is made, no change is likely soon since legislative changes would need to be undertaken and this may take a further year...more----