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.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (4459)	4/15/2004 11:55:40 PM
From: gregor_us	Read Replies (1) \| Respond to of 116555

Resolved: Fed Reserve and Snow Will Battle Bond Market. OK. After Parry's SF Chron interview over last weekend they got McTeer out early to knock back any notion that the Fed would need to hike anytime soon. Since the inflationary econ numbers Tuesday, it's been one Fed Gov after another--including Bernanke--and Snow--telling us not to worry about Fed hikes. But this is funny, right here: Snow gave a speech today saying the Treasury was bringing in increased revs from The Growing Economy and therefore would "reduce borrowings" as early as this year. So there you have it. Done deal. They are going to war against higher interest rates. CODA: Snow comments about Treasury borrowings reduction actually caused a rise in USD/JPY. Ha ha. Not what Snow wanted for sure... ____________________________________________________ Dollar Rises; Snow Says Economic Growth Might Lift Tax Revenue April 16 (Bloomberg) -- The dollar gained against the yen in Asia, heading for its second winning week, after U.S. Treasury Secretary John Snow said stronger economic growth may lift tax revenue and reduce the government's borrowing needs this year. ``Government receipts are coming in stronger -- that is what you would expect for an economy performing as well as this one,'' Snow said yesterday in an interview. Tax refunds are ``somewhat under our forecast.'' The Bush administration projects a record deficit of $521 billion in fiscal 2004, which ends on Sept. 30. ``The U.S. economy will continue to expand, helping to reduce its fiscal deficit and supporting the dollar,'' said Koji Fukaya, chief analyst in Tokyo of the foreign exchange and treasury division at Bank of Tokyo-Mitsubishi Ltd. At 12:10 p.m. in Tokyo, the dollar strengthened to 108.64 yen from 108.28 late yesterday in New York, according to EBS, an electronic foreign-exchange dealing system. It traded at $1.1975 per euro from $1.1984. The dollar may rise to 109 yen and $1.19 against the euro today, Fukaya said. The dollar's gain may accelerate should it breach 109.30, where automatic orders to buy the dollar and sell the yen have been placed, according to Tsutomu Soma, a currencies and derivatives trader at Okasan Securities Co. in Tokyo. The U.S. currency's advance against the euro may gather pace should it reach $1.1930, where there are automatic orders to buy, Soma said. Traders typically place orders to stop losses in the event their bets go the wrong way. Exceeding Forecasts quote.bloomberg.com