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

To: Lazarus_Long who wrote (49914)	1/13/2004 10:11:28 AM
From: zonder	Read Replies (1) \| Respond to of 57110

Well, the difference between Fed funds rate and ECB repo rate is not so great as to "attract funds", Laz. US rate is 1% and EU rate is 2%. That is not an irresistible attraction to the cash in anyone's pocket, considering the interest rates in UK (3.75%) and Australia (5.25%), for example. Even Canada has a higher rate than EU, at 2.75%, if I recall correctly. You really need to understand that interest rates are not the only determinants of relative attractiveness of a currency, Laz :-)