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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (40167)	10/25/2003 3:40:33 PM
From: Haim R. Branisteanu	Respond to of 74559

Thanks James - Japan and China are big players that induce the huge volatilities in the FX markets. For example to stabilize the JPY Japan was a massive buyer of EZ bonds which pushed the EUR to the record highs last June. (Japan was also active many times before this year, having various targets set for the JPY/USD ...... always round #) US hedge funds just jumped on the bandwagon. By mid June Japan started to recover and FX trader lost interest in the JPY/USD pair. About that time both Japan started dumping their EZ bonds. On the other hand China which is pegged to the USD started also to sell the EUR to cheapen their EZ imports. As a result of this manipulation the EUR slid over 10% in less than 2 months from 1.1930 to 1.0750. Those actions were very selfish with disregard of the damage to world economies excluding those engaged in the manipulation

To: James F. Hopkins who wrote (40167)	10/25/2003 4:57:01 PM
From: Haim R. Branisteanu	Read Replies (3) \| Respond to of 74559

Flagging dollar fuels fears of halt to world recovery By Gary Duncan, Economics Correspondent THE dollar lurched downwards yesterday, tumbling to its lowest level for more than six years with losses that fuelled fears that a rout of the US currency could derail world recovery. Although the dollar later clawed back lost ground, the latest assault on its value — which drove it to a five-year low against the pound — saw strategists give warning that it is vulnerable to renewed attack and likely to succumb to deeper losses. The sharp rise in the yen triggered by the dollar’s plight also provoked the worst fall in Japanese shares since the September 11 attacks. timesonline.co.uk