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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (21611)	11/10/2004 11:06:17 AM
From: russwinter	Respond to of 110194

Takes the pressure off the need for the Japanese to buy USD today: Japanese Yen(CME)(Globex) Dec 93.73a -1.02 11/10/2004 7:54 Now let's see how well the ten year auction goes off today without them, and whether the Fed has to engage in a big OMO, likely on the latter. So far: 10-Year T-Notes(CBOT) Dec 112~015 -0~075 11/10/2004 7:50 Buyers of the 5 year yesterday are nicely underwater. Meanwhile ECU has comments on weak USD and oil prices: Associated Press EU Report Warns on Weak Dollar Pressures Wednesday November 10, 10:24 am ET EU Report Warns Weak Dollar May Be Adding to Pressures Pushing Oil Prices Higher BRUSSELS, Belgium (AP) -- The weak dollar could be adding to pressures pushing oil prices higher, according to a European Commission report. The 35-page document, obtained by Dow Jones Newswires on Wednesday, will be presented to European finance ministers at their monthly meeting next week. While it emphasizes that Europe can live with current oil prices of around US$47 a barrel, the EU's head office warns of low growth and higher inflation if energy costs rise further. More big increases next year could slash euro-zone growth by 0.8 percent to 1.2 percent, it warns. Oil prices have recently been falling, however. The EU report mainly blames geopolitical events and increasing demand, especially in China, for this year's surge. However, it warns the weak dollar could have an impact by putting "pressure on oil prices as oil-exporting countries aim to maintain the purchasing power of their oil revenue." With oil priced in dollars, it suggests producers will hike the price to compensate for the currency's depreciation. The EU has previously noted that the euro's strength against the dollar has helped cushion the impact of the oil rise in Europe. Last month, the Commission forecast average oil prices of around US$45 a barrel in 2005 and US$35 in 2006. Officials from the Commission and the European Central Bank have voiced their concern in recent days about the euro's strength. A strong euro and a weak dollar hurts European exports by making them more expensive to U.S. consumers. The euro hit a new record Wednesday, rising to US$1.3007 on the heels of data showing the U.S. trade deficit at more than US$50 billion for the fourth straight month.