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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (3063)	4/17/2001 10:41:00 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 3536

Lee, I have been wondering the same thing. If it's money flows, then why is the dollar so strong? It could well be that the market is "looking over the valley" and projecting a stronger economy 6 months from now. This morning's industrial production numbers were a bit of a shock and could give support to the argument that the industrial sector is bottoming. It's possible that the whole jump in rates is more of a technical disappointment to the failure of the Fed to produce an intermeeting rate cut. Perversely though, if the Fed has been too hesitant, you would expect that the economy would be even weaker and interest rate expectations would be even lower. I don't know which it is, but I am guessing that this move won't be sustained for long.