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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (14)	5/1/1998 4:10:00 PM
From: Michael	Read Replies (1) \| Respond to of 3536

Hi Henry, Great idea for a thread and very timely given the upcoming launch of the Euro. I've seen a number of different posts on this many of which are contradictory. They basically split down into two theories. 1. The Euro will be strong. The ECC wants to unseat the Dollar or at least severly dent its pre-eminence as the World's reserve currency. To this end they will pursueing a vey hard money policy (Strong Gold Backing), probably selling off some dollar reserves once Euro is finalised, to "pump up" the Euro. 2. The Euro will be weak. Like a chain and its weakest link, the value of the Euro will be dragged down to the level of its weakest participants. Also the problems of trying to make a system like this work (evidenced by the fudging in the criteria and indeed the previous experience with the ERM) . Both of these sound plausible to me. What would be your take them Regards Michael