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

To: Real Man who wrote (24344)	11/17/2009 4:46:02 AM
From: ayn rand	Read Replies (1) \| Respond to of 71456

U.S. Dollar Has A Long Way To Fall .................................................... forbes.com

To: Real Man who wrote (24344)	11/17/2009 7:49:59 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 71456

Here is inflation - UK (but the BoE in its infinite wisdom says any inflation is just "temporary") UPDATE: Pound Nudges Up, Tests Key Levels After CPI Data (Adds analyst comments, updates currency prices.) By Katie Martin Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Sterling edged back up towards a three-month high against the dollar in European trading hours after a key reading of annual U.K. inflation accelerated for the first time in eight months in October. The pound nudged up to an intraday high of $1.6871, a shade below its highest point since August this year, after the annual consumer price inflation rate hit 1.5%, in line with economists' expectations. The currency later reversed those gains. The euro also dipped to a two-month low against the pound at GBP0.8850. It didn't recover in the following hour or so. The inflation data don't point to higher U.K. interest rates right now. However, they do help to balance some of the negative sentiment surrounding the U.K.'s prospects amid a heavy public debt burden. Any sterling gains are likely to be limited for now as the Bank of England is due to release the minutes of its November meeting Wednesday--a regular event that has shaken sterling several times in recent months. Ian Stannard, a currencies analyst at French bank BNP Paribas SA in London, said he was "concerned" about sterling's initial rise, suggesting the currency's "mechanical" correlation with interest rate expectations at the moment is inappropriate. The slight upward rise in inflation seen Tuesday reflects temporary factors like higher fuel prices, he said. The forthcoming unwinding of value-added tax cuts in January could also help to push inflation higher later, he said. "Inflation expectations are moving higher and interest rate expectations are moving higher, and I'm concerned that once the market realises that [this higher inflation reading] is down to temporary factors, then people will realise that the Bank of England is not going to react in the way they currently expect. This rise in fuel costs and in taxation is going to have a negative impact on the U.K. economy, not a positive one," he said. The Bank of England had predicted that annual CPI inflation, which it targets at 2.0%, would start to rise again from October. But it has also said it will disregard what it expects to be a temporary upward move. At 1125 GMT, the pound had moved back down to $1.6802 against the dollar. The euro pared some of its losses to trade at GBP0.8880. -By Katie Martin, Dow Jones Newswires; +44 (0) 207 842 9346; katie.martin@dowjones.com. (Natasha Brereton in London contributed to this article.) Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: djnewsplus.com. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires November 17, 2009 06:28 ET (11:28 GMT)