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

To: Real Man who wrote (4542)	2/27/2008 7:44:39 AM
From: RockyBalboa	Respond to of 71475

Evidently the market is pricing in a lot of easing. Today, the rates moved down another 3bp on EUR strength.

To: Real Man who wrote (4542)	2/27/2008 8:38:48 AM
From: RockyBalboa	Respond to of 71475

Durable goods orders weaker than forecast minus 5.3% (4.0%), Dollar Index falls again. Get ready for the "Heli Ben" trade - Bernanke to talk at 10am (EST), sell as they speak... Maybe he can comment on new home sales (if any), also due 10:00am.

To: Real Man who wrote (4542)	2/29/2008 3:03:00 AM
From: RockyBalboa	Respond to of 71475

A top aide to French President Nicolas Sarkozy fired a shot across the bows of the ECB yesterday, demanding that "monetary policy must remain within reasonable bounds". The comments are a clear hint that Paris may try to force a change of tack by invoking Maastricht Article 109, which gives EU politicians the power to dictate exchange policy. France has lacked allies for use of this so-called "nuclear option", but this may change now that a number of eurozone countries are in trouble. Spreads between 10-year German government bonds and the equivalent debt across the eurozone's Latin bloc have jumped to the highest level since the launch of EMU, reaching 45 basis points for Greece, 43 for Italy, 36 for Greece (Ed:?). The spreads on Spanish bonds have ballooned to 28 from 4 last May, reflecting an abrupt change in perceptions as the property boom deflates and investors take a closer look at Spain's current account deficit, now a 10pc of GDP. "The widening spreads are telling us that these countries are going to be hit harder than core Europe in a downturn," said Simon Derrick, head of currency research at Bank of New York Mellon. telegraph.co.uk