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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (15788)	12/9/2002 9:30:46 AM
From: X Y Zebra	Read Replies (1) \| Respond to of 57110

December 9, 7:00 AM: EUR/$..1.0090 $/JPY..122.72 GBP/$..1.5791 $/CHF..1.4601 Bush Playing For Snow, But Dollar Marred by Uncertainty by Jes Black No Key Data The Washington Post reported this morning that John Snow has accepted Bush's job offer to replace Treasury Sec O'Neill with an official statement coming perhaps as early as today. Snow, another industry executive was also the former chairman of the Business Roundtable and has been a strong supporter of tough standards in corporate governance. But the FX market is most interested in his stance on the dollar. A lawyer and economist by training, it is hoped he can be comfortable with both Wall St and Washington and more importantly, become the president's spokesman for an economic "growth" plan. Interestingly, it is not a "stimulus" package as that would imply the previous capital injections failed as it was also O'Neill's and the Fed's hesitation over further stimulus. Sources also say Stephen Friedman, former Goldman Sachs co-chair with previous Treasury Secretary Rubin, will replace Lindsey as Economic Council head. Despite the business friendliness of these possible replacements, the dollar has languished this morning as traders mull over whether Snow will be agaisnt the "strong dollar" policy seeing that he was he and other industry execs have had profits squeezed by the dollar's sharp rise from 1995. Dollar also down as US equity futures point to another rocky road on Wall Street this week. Uncertainty over rising oil prices from the 2-week old strike in Venezuela, the awaited Bush administration reaction to Iraq's declaration of no weapons, and last Friday's surprise jump in joblessness, has US equity futures pointing to a negative start on Monday. UAL is also to file for bankruptcy today. Last week the market gave back 5% in the Dow and S&P after a selloff in front of key resistance at 9000 in the Dow and 950-965 in the S&P. Prices then closed below trendline support at 8790 and 930 in the Dow and S&P, retested and failed, which could be seen as the first indication of an important reversal. Key resistance remains at 930, the 61.8% of the 955-895 decline. Another test and failure here (today or tomorrow) would bode poorly for the index and indicate that further near term losses were likely this week. More weakness on Wall St should also keep dollar sentiment depressed. more... forexnews.com