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To: MonsieurGonzo who wrote (1690)1/6/1998 2:32:00 PM
From: smolejv@gmx.net  Read Replies (2) | Respond to of 11051
 
>>trying to screw up enough courage<< try screwing up harder (g)

>>I don't understand the rally in bonds and lower US interest rates being coincident with rally in USD:DEM exchange rates ...do you ?<<

The money is fleeing (probably from everywhere) to save havens. Where to? What are the
the alternatives? Who's strong in this world of 1998?

1. US
2. Europe
3. Japan (;\ - you gotta be joking)

Which of the two first alternatives is to be preferred (asking the lemmings)? Well, Europe at the moment has a few unanswered questions pending, the biggest being Euro. A supporting fact is the pound and its exchange rate history (and probably near future).

So US is the preferred target; due to balance in interest rates the only leverage that remains from the market point of view is the dollar exchange rate.

I guess...

Any other opinions?

To predict a little: the same trend will continue (talking about US$/DEM exchange rate) until at least may 98 or any other such moment when the world opinion about the European monetary union will change colours (for better or worse).

Janko