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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (44674)	5/10/2003 2:12:27 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 52237

the USD bubble is popped already. 25% depreciation within a year in a currency is very substantial when assuming that the counterparts are in worst economic shape than the US (e.g Japan and Europe)

To: Gersh Avery who wrote (44674)	5/11/2003 7:22:59 AM
From: Haim R. Branisteanu	Respond to of 52237

UPDATE 1-Euro level could hurt if it lasts - French PM Fri May 9, 2003 01:39 PM ET PARIS, May 9 (Reuters) - French Prime Minister Jean-Pierre Raffarin said on Friday he feared that the euro's rise against the dollar could hurt European exports if the exchange rate stayed at current levels for long. Raffarin, interviewed on France's LCI television, said that economic growth was vital and that an interest rate cut by the European Central Bank would help. "Our priority of priorities is growth and employment. From that point of view, at the appropriate moment a cut in interest rates would be welcome," Raffarin said, adding he respected the ECB's independence. Asked about the euro's exchange rate versus the dollar after the 12-nation currency set a fresh four-year high on Friday, he said: "I think that it is worrying that we are currently at levels where our external trade would be penalised if this euro-dollar gap were to last." The euro hit a four-year high against the dollar after the European Central Bank left interest rates unchanged this week, hitting $1.1535 at one stage on Friday. "What counts is the economic issue. The euro-dollar issue is an important one. If the euro is strong it suits us when we are buying, but it does not suit us when we sell," Raffarin said. He said there were also benefits from the rise in the euro, in terms of the cheaper cost of oil paid for in dollars, as well as other imported goods with dollar price-tags. "But it is true also that all our import bills, including oil, are falling," he said. At European level, there should be a greater focus on aiding economic growth and jobs, he said. "One percentage point of economic growth is 150,000 jobs in our country. As soon as world growth slows, unemployment rises. We should all mobilise in Europe." "We must coordinate and have stronger policies to support growth and employment, and on this the central bank must help us," he said. On Wednesday, French Finance Minister Francis Mer said that the euro's exchange rate level versus the dollar was "still tolerable" at current levels, on a day when the euro was trading at close to $1.14. "At current levels of $1.10 or 1.13, the situation is still tolerable," said Mer, who chairs a meeting of finance ministers from the Group of Seven economic powers in France at the end of next week.