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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (63942)5/18/2005 11:25:08 AM
From: energyplay  Respond to of 74559
 
There's now some concern about the Euro -

1) Much low growth prospects for Europe

2) Questions if EU Constituion does pass - this is serious, long time.

There is now talk that the Euro might go under $1.00 (from the current $1.26)

With the US interest rates now being higher, this would cause lots of hot money to move toward the USD.

By having the carrot of RMB revaluation out there, some money can go to China.

By not having the revaluation occur soon, that means the world can wait until after the France referendum on the EU Consitution.
A 'no' vote would make a revaluation less likely for the rest of this year.

***********

So instead of being a question of optimizing Pacific trade and investments, the issue may become stability of European currencies vs. everybody else.