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

To: Robert Douglas who wrote (450)	8/23/1998 10:00:00 PM
From: Step1	Read Replies (2) \| Respond to of 3536

Robert, thank you for your honest attempt. As you mentioned it would be difficult to adjust for every different price move within the "basket" and I suppose that it would not take long for the system to be called the basket case. I asked the question because I have seen this suggestion made on countless boards although I have never seen it explained. As it stands it seems to me that currencies are already made up of "baskets of commodities" . Look at the Canadian dollar; since the economy is heavy on natural resources companies, the market discount the value of the CAD as it perceives the underlying commodities having less value in a time of deflation brought about by the Asian crisis. Is my reasoning correct here? later sg