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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (11760)	11/1/2002 9:52:35 AM
From: Bucky Katt	Respond to of 13094

The US dollar?> New York, Nov. 1 (Bloomberg) -- The dollar fell to an eight- week low against the euro as a rise in the U.S. jobless rate added to evidence the economy is slowing. The dollar also fell for an eighth day against the yen, its longest slide in three years. ``The economic environment points to a weaker dollar moving forward,'' said Shaun Osborne, chief currency strategist at Scotia Capital in Toronto. ``People are still very shy of buying the currency.'' At 9 a.m. in New York, the U.S. currency weakened to 99.74 cents per euro from 99.03 late yesterday. It last reached $1 per euro on July 26. The dollar fell to 122.02 yen from 122.48, its longest losing streak since March 1999. The U.S. jobless rate rose to 5.7 percent in October from 5.6 percent in September. Economists had expected a rate of 5.8 percent. Payrolls fell by 5,000, after dropping 13,000 in September. The U.S. currency extended losses against the euro after it reached 99.30, a level that triggered automatic sell orders, said Rob Howard, a currency analyst at Thomson Financial in London. Traders typically place such orders to curb losses when their bets go the wrong way, and these trades may cause a currency to fall. The Institute for Supply Management's factory index for October, due out at 10 a.m., probably fell to its lowest level this year, economists said. Statistics yesterday showed the world's biggest economy grew less than expected in the third quarter and jobless claims rose last week. Today's figures ``probably won't be helpful for the dollar,'' said Michael Derks, a strategist at Commonwealth Bank of Australia in London. At the same time, ``the numbers would have to be very weak to send the dollar much lower'' because signs the economy is struggling are widely expected, he said. Pimco Paul McCulley, who manages more than $90 billion for Pacific Investment Management Co., said the Federal Reserve and Treasury Secretary Paul O'Neill should endorse a weaker dollar in conjunction with a 50 basis-point interest rate cut on Wednesday and rate reductions from the European Central Bank and the Bank of England. ``The time has come for the Fed and the U.S. Treasury to join forces, with Alan Greenspan cutting short rates and Paul O'Neill explicitly declaring that a strong dollar is not in America's interest,'' the Newport Beach, California-based fund manager wrote on Pimco's Web site. ``It is also time for America to announce to its G-3 partners that a weaker dollar is not a problem to be solved, but an opportunity to be seized by Euroland and Japan to aggressively ease monetary policy, using all available means'' to fight deflation, McCulley wrote. Pimco is a unit of Allianz AG. _____________ Oh yeah, gold goes up when the US dollar goes down... I happen to own some AU calls, which are doing quite well this week... Most mutual funds closed out their fiscal year yesterday, so you might expect to see a less "inflated" stock market.