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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: John Dally who wrote (1526)	11/3/1997 7:40:00 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 5676

Hi John, I agree, the dollar has lost ground against the currencies of our european and pacific trade partners since July. The Deutsch Mark is a currency market I follow closely since Germany is a major trade partner to the U.S. I believe that lower rates in the U.S. makes the dollar less attractive to foreign investors. I believe this is what is reflected in the chart you posted, the selling of dollars due to lower U.S. rates being a less attractive investment to overseas investors. I'm keeping my eye on U.S. 30 year bond cash rates. I believe 30 year rates are the key in this whole scenario. If rates begin to inch higher, and I suspect they may, the upticks would attract more dollar buying as foreign investors return to U.S. equities and fixed rate markets. I think the equities markets can, and are likely to, continue higher with rates somewhat higher than where they are now, the markets have in the past. This may be what's beginning to happen right now. The DOW appears to be very boyant. I'm sorry if I overanswered your question, if I answered it at all. But, that's the only sense I can make out of the recent dollar weakness. Honestly, I suspect the dollar to firm up and the equities to make new record highs before mid February. Have a great week! GZ