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


To: X Y Zebra who wrote (663)9/15/1998 3:47:00 PM
From: Robert Douglas  Respond to of 3536
 
Following the above, and given the recent and expected continued weakness of foreign economies (as consumers), is it safe to assume that further increases in the trade deficit, (lower US exports as said foreign consumer markets are weakened), are to be expected, hence further dollar weakness can be expected?

In my opinion, yes, a larger trade deficit and a lower dollar. I won't go into the reasons why, if you are interested check my prior posts. My viewpoints are distinctly in the minority on this thread.

Would that mean then that the fed would be less likely to lower interest rates ?

I think the Fed will be MORE likely to lower rates due to the dual effect of stimulating the U.S. economy and weakening the dollar. Here I agree with what Mr. Angell said in my original post.

As for Mr. Soros and his intentions, I am suspicious.

-Robert