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To: TobagoJack who wrote (50857)	6/10/2004 2:48:07 AM
From: elmatador	Respond to of 74559

<<Euro Falls on EU Clash, Rate Speculation.>> Jay when I sold at 1.2150 it was because I thought it had to go back to 1.19 which was the price when the rate increase was priced in. Euro Falls on EU Clash, Rate Speculation Wed Jun 9, 2004 11:32 PM ET By David McMahon TOKYO (Reuters) - The euro lost ground against major rivals on Thursday, hurt by a spat among European leaders and speculation that the U.S. Federal Reserve will raise interest rates more aggressively than previously thought. New York Fed President Timothy Geithner said on Wednesday the central bank was determined to defend price stability and support the U.S. economic recovery, and Kansas City Fed President Thomas Hoenig said it would act decisively to keep prices in check. Those hawkish comments in the United States came in the wake of remarks by Fed Chairman Alan Greenspan, who said earlier in the week that the Fed would do "what is required" to keep inflation in check. "The euro is clearly being hurt by the Fed comments, and by the easing of oil prices which is leading many to take profits after buying on the assumption the euro would suffer least if oil prices continued to rise," said Mitsuo Imaizuni, deputy general manager of the forex department at Daiwa Securities SMBC. The euro was sitting near a two-month low against the British pound and a five-month low versus the Swiss franc It was fetching around $1.2050, little changed from late New York levels. The single currency also suffered after Italian Prime Minister Silvio Berlusconi and European Commission President Romano Prodi clashed on Wednesday over EU monetary policy, mirroring a growing rift over economic policy for the region. Berlusconi criticized the European Central Bank for keeping interest rates on hold, and said its focus on inflation was wrong at a time of economic stagnation. The U.S. Fed is holding overnight rates at a 46-year low of 1 percent, but it is widely expected to raise them by a quarter percentage point when it meets on June 29-30. YEN GAINS Elsewhere, the yen put on gains after Bank of Japan data showed the domestic corporate goods price index rose 0.1 percent in May from April, suggesting Japan's battle with deflation may be waning. Continued ... © Reuters 2004. All Rights Reserved.