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

To: J.T. who wrote (5500)	12/7/2000 1:42:43 AM
From: J.T.	Read Replies (2) \| Respond to of 19219

Dollar swooning from its perch (and gold and XAU coming to life)from Bloomberg: Dollar Trades Near 11-Week Low vs Euro as U.S. Economy Slows By Miki Anzai and Mari Murayama Tokyo, Dec. 7 (Bloomberg) -- The dollar, hovering near a 11- week low against the euro, may fall for an eighth day in nine on signs that the U.S. economy is slowing relative to Europe's, prompting investors to shift funds to the euro-region. The euro bought 89.11 U.S. cents, compared with 89.19 in late New York trading yesterday. That's 4.5 percent above where the single currency traded nine days ago. Against the yen, the dollar was little changed at 110.38 from 110.19 in New York. ``The euro will keep rising as investors, who had heavily invested in the U.S., take out some funds and place them in the euro region,'' said Takayuki Togawa, a foreign exchange manager at Tokai Bank Ltd. He expects the euro to rise to 93 cents through the end of this month. The Federal Reserve said yesterday in its latest regional economic report that the U.S. economy expanded at a slower pace in November. By contrast, Germany, the biggest economy in the 11 nation region, said yesterday that its manufacturing orders rose in October by more than twice economists' forecast. At the same time, Apple Computer Inc. said it expects to lose money in the quarter ending this month and the Nasdaq Composite Index plunged 3.2 percent, reflecting broader prospects for a decline in U.S. corporate earnings. Growth Disparity Economic growth in the U.S. will probably slow to 3.5 percent next year from 5.2 percent in 2000, the Organization for Economic Cooperation and Development said in its economic outlook report. For the euro zone, it forecasts 3.1 percent growth in 2001, from 3.5 percent this year. The U.S. currency will fall further should the government release weaker-than-expected monthly jobs figures for November tomorrow, Togawa added. Economists surveyed by Bloomberg expect that unemployment rose to 4 percent last month from 3.9 percent in October, a 30- year low first reached in April. The euro benefited the most among three major currencies. It has gained more than 2 percent against the yen and the dollar in the past week. ``The euro is the currency which we all consider the most reasonable currency to buy,'' because it lost its value by more than 30 percent since its January 1999 inception, said Tomoyuki Kawakami, deputy general manager for trading division at Shinsei Bank Ltd. Kawakami said the euro could rise to 90 cents from the 89.10 level it recently traded. Dollar-Yen The yen slipped 0.2 percent against the dollar as investors and traders bought dollars when ``the U.S. currency approached the lower end of trading range'' set Nov. 22, said Tadatoshi Taso, a foreign exchange manager at Bank of Tokyo-Mitsubishi Ltd. For the past two weeks, the dollar has fallen to near 110 yen every day, then rebounded, climbing as high as 112.05 on Dec. 1. ``The 110 yen level is a great level to buy the dollar,'' said Hideyuki Tsukamoto, a foreign exchange manager at Fuji Bank Ltd. In other trading, the dollar rose to 1.7003 Swiss francs from 1.6979 francs in late New York. The British pound was little changed at $1.4425 from $1.4439 yesterday. Best Regards, J.T.