Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: AuBug who wrote (505994)	12/8/2003 1:57:34 PM
From: jackhach	Respond to of 769670

FOREIGN EXCHANGE Updated December 8, 2003 9:52 a.m. Borrow Until Something Happens Dollar Weakens on Euro & Yen as Fed Decision Nears By JAMIE MCGEEVER DOW JONES NEWSWIRES NEW YORK -- The dollar opened U.S. trading Monday around record lows against the euro and multiyear lows against a host of other currencies as dealers await the Federal Reserve's policy meeting Tuesday. Early Monday, the euro was trading around $1.2232, up from $1.2162 late Friday in New York, and was also up against the yen at ¥131.29 from ¥131.03. The dollar was at a new three-year low against the yen of at ¥107.26, down from ¥107.76 late Friday, and hovering round fresh seven-year lows against the Swiss franc at 1.2641 francs, down from 1.2757 francs. Sterling was trading around a new five-year high at $1.7353, up from $1.7295. In the wake of the weaker-than-expected U.S. labor market report last Friday, there's near unanimity in the market that the Fed will preserve the dollar's low-yielding status by leaving interest rates unchanged at a 45-year low of 1%. But with nearly all other economic data over the past month surprising on the upside, a growing number of observers expect the Fed to remove the words "considerable period" -- which indicate its easing bias -- from the accompanying statement. If the Fed does take the first step Tuesday toward eventual tightening, the dollar will likely get a much-needed fillip. And given the extent of its recent losses, there's also the possibility of a natural correction higher as the session progresses Monday. After all, this is the seventh straight session the euro has posted new highs against the dollar. But the momentum in the drop is such that few are willing to confidently call a halt to the dollar's decline. "It's moving a bit quicker than we expected ... but there's no discomfort in the market," said David Durrant, senior currency strategist at Bank Julius Baer in Zurich. Pointing to U.S. trade data slated for release Friday, he anticipates not only a weak session for the dollar but another difficult week. Even if the Fed does remove these two words from its statement, the general tone of Fed policy will still be conducive to a softer dollar, Mr. Durrant contends. "It's our belief that the Fed is driving the dollar [lower]," he said. While stacked against the dollar, market positioning isn't too extreme, according to the latest International Monetary Market data from the Chicago futures exchange. And sentiment remains deeply bearish. "The risks are tilted in favor of a further acceleration in the dollar's decline in these thin holiday markets," wrote HSBC currency analysts in a research note Monday. The market is on intervention alert, with Japanese monetary authorities likely to intervene selling yen for dollars at or just below current levels, observers say. They have been in the market consistently in recent weeks smoothing out the dollar's decline, but with the U.S. currency probing a ¥106 handle, a more concerted intervention may be imminent. Write to Jamie McGeever at jamie.mcgeever@dowjones.com

To: AuBug who wrote (505994)	12/8/2003 2:10:34 PM
From: Oeconomicus	Respond to of 769670

Too bad no one in office has the moral courage to do what's really best for our future. You're on the wrong side again, Eumenides. Is that why you picked that alias? ;-) Seriously, if you took a moment to read Bush National Security Policy, his speech of Nov 6, and Blair's Warsaw speech of late May, you'd see that's exactly what Bush is doing. And that holds regardless of whether one finds fault with details of execution. Even Hillary understands this. As for the state of our legislative processes, I agree with you, though I hesitate to place blame for that on one party alone and certainly don't see it as a reason to vote for any of the Democratic candidates. PS: Who the F cares about SAT scores besides college admissions officers?