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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (22124)	12/7/2004 10:20:12 AM
From: sea_urchin	Respond to of 81023

Mr Vet > Searle is right and Norris is wrong Thank you, sir. I take a bow.

To: The Vet who wrote (22124)	12/8/2004 3:43:23 AM
From: GUSTAVE JAEGER	Read Replies (1) \| Respond to of 81023

Re: The USD Index is a trade weighted index and it's composition is derived by the relative amount of trade the US does with each of the other currencies. It is the value of the USD compared with a weighted average of all the other major currencies the US deals with. It does provide a real measurement of the USD versus the rest of the world currency values. I disagree... I checked out the USD Index again and noticed that it's "weighted" with the Swiss franc (CHF) and I think that's the snag --look at the chart below: x-rates.com As you see, the CHF rose against both the USD and the EURO (from Oct 5, 2004 on) hence it excessively skews the USD Index DOWNWARDS... Ever since the launch of the euro in 1999, the CHF has been a currency hedge/heaven for wary European investors --especially when the Euro tumbled against the USD in its first few months of existence. Bottom line: factor out the CHF and you'll get a fairer picture of the USD's strength. Gus Footnote: CHF/USD chart x-rates.com