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

To: X Y Zebra who wrote (22837)	1/24/2003 8:47:27 AM
From: X Y Zebra	Read Replies (1) \| Respond to of 57110

Message 18484772 The Alameda, California-based company installs more than half of China's Little Smart systems, which two Chinese fixed-line phone companies use to sell limited-range cordless phone services to more than 10 million people. China, which has 207 million cell- phone users, overtook the U.S. last year as the world's biggest wireless market. _____________________________________________ January 24, 7:00 AM: EUR/$..1.0775 $/JPY..117.95 GBP/$..1.6305 $/CHF..1.3611 Markets Hedge Bets as Bush Stance Leaves USD in the Cold by Jes Black No Key Data The dollar edged lower in London trade, reaching fresh multi-year lows against the European majors, while narrowly avoiding new lows against the yen. Concerns that the US is ready to wage war on Iraq without the consent of international law have further rattled the markets. Meanwhile, Russia and China have joined France and Germany in opposition to the US rush to war. This was laid out in an article appearing in the Friday edition of the Guardian and corroborates this week's Russian news agency report which cited a top Russian military officer saying he had knowledge the US planned to invade Iraq in mid-February. Sources also informed the Guardian that Bush's state of the union address would advocate the use of force, which likely induced further hedging against the dollar ahead of next week's event risks. On Monday, the UN weapons inspection team is due to present its findings to the Security Council. While chief weapons inspector Hans Blix has said no smoking guns have been discovered in Iraq yet, the inspectors will likely ask for an extension in their investigation. This is where the US will likely stand apart from the rest of the UN Security Council, as it does not appear willing to grant more time before it pushes for a military strike. Also of importance is the confirmation hearings taking place on Tuesday for newly appointed Treasury Secretary John Snow. While the White House has maintained that it intends to stick to a strong dollar policy, observers will be scrutinizing Snow's testimony for hints of his stance on the currency. President Bush will also be delivering his State of Union address on the same day. Suspicions are that the US President will press more urgently for action on Iraq instead of adopting a more consensus-building approach. If Bush broadcasts a bellicose message with regard to Iraq, the dollar could face further declines as investors scramble for safe-have cover. Markets will also closely follow the outcome of Israeli elections, and the Fed's monetary policy meeting. Then on Friday, there will be a Bush/Blair meeting at Camp David, which some are already calling a war council. <snip> Concern that the US may go it alone in Iraq, has put the dollar under even more pressure, with USDX falling to a new 3-year low of 99.65. The move below psychological support is likely to cause non-US holders of Treasury debt to reduce their exposure. Specifically, both Russian and Chinese central bank governors alluded to this earlier in the week. In turn, demand has shifted to the euro in recent months as EUR/CHF remains in a tight 2-year range of 1.45/48, indicating that the single currency is now benefiting from global safe haven demand, and not just the stalwart franc. forexnews.com