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To: Lucretius who wrote (47432)12/13/2000 11:05:18 PM
From: pater tenebrarum  Read Replies (2) | Respond to of 436258
 
not necessarily. i think Euro/dollar is much less influenced by rates than is commonly believed. in any case, there has been a huge slowdown in capital flows from Europe to the US. the dollar doesn't yet reflect this imo. not to mention purchasing power parity...

it will be interesting to see if the carry trade unwinds a la Yen...btw, i have a feeling that the Yen carry is back in fashion....did you see Japanese rates lately? complete collapse in JGB yields...so there WAS a govt. bond dislocation there, but in the opposite direction than i originally suspected. japan is going back into recession mode it seems.

i'm outta here!