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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (3331)	1/14/2008 7:14:11 PM
From: Real Man	Read Replies (1) \| Respond to of 71479

That's weird, maybe some dollar prop is going on through London (and Caymans), as TIC reports indicated. Of cours, the Brits have their share of subprime of their own.

To: RockyBalboa who wrote (3331)	4/16/2008 7:20:26 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 71479

UPDATE: Euro Soars To New Record Highs After Inflation Shock Wed, Apr 16 2008, 10:52 GMT djnewswires.com UPDATE: Euro Soars To New Record Highs After Inflation Shock (Updates with analyst comments and fresh prices.) LONDON (Dow Jones)--The euro hit a fresh record high against the dollar and sterling Wednesday after estimates for euro-zone inflation readings were revised upward. The currency climbed to $1.5968 - well above the previous record at $1.5915 April 10. The psychologically significant $1.60 mark now appears easily in sight. Similarly, the euro climbed to GBP0.8074, comfortably beating its previous record high at GBP0.8062 charted Tuesday. The trigger for the move came from euro-zone consumer prices data. The inflation rate in March rose to an unprecedented 3.6% - way above the European Central Bank's 2% target. That means that ECB rate cuts are now firmly off the agenda, giving the euro a further boost against the dollar, which was already dogged by expectations that earnings results from U.S. companies due for release later Wednesday may be weak. Further gains for the euro against the dollar from here are still likely. "It's difficult to make the case that the move is overdone," said David Woo, head of currency strategy at Barclays Capital in London. "Everything about this dollar weakness is consistent with relative fundamentals. The bottom line is that policy responses to the current crisis are different on the two sides of the Atlantic," he added. Woo added that some of this fresh wave of dollar weakness is down to the meeting of central bankers and finance ministers from the Group of Seven major economies late last week. Although the G7 expressed concern over recent turbulence in currency markets, it didn't offer any hints that it would take action to reverse dollar weakness, leaving traders and investors free to keep pushing it lower. "We could soon be getting to the point where the dollar drop becomes disorderly," said Woo. The euro's move also dragged the dollar lower against other key currencies. The greenback tumbled against the yen, which was already trading higher after the People's Bank of China tightened banks' lending conditions. The dollar sank to a session low of Y100.83, from the Y101.75 area in Asian hours. Similarly, despite a general sense of gloom over the U.K. housing market, the pound extended its earlier gains against the dollar to trade at $1.9807, having bounced up from the $1.96 level in Asian hours. It later eased back a little. By 1050 GMT, the euro was trading at $1.5949, from $1.5780 late in New York Tuesday, according to EBS. It was at Y101.00 from Y101.59. The pound was at $1.9755 from $1.9615. -By Katie Martin, Dow Jones Newswires; +44 (0) 207 842 9346; katie.martin@dowjones.com. (Emma Charlton and Paul Hannon in London contributed to this report.) (END) Dow Jones Newswires April 16, 2008 06:52 ET (10:52 GMT)