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12-16-2004, 04:22 AM
The capital account information that is feeble will expose the US money to selling pressure on doubts that the US will have the ability to attract capital and worries will grow. Yield concerns will provide some protection and there'll be over selling the dollar some warning. Fund managers believe the buck is closer to fair value. Despite all these factors it's going to be hard to protect against an assault on Euro highs.
The dollar stayed on the defensive for much of the previous 24 hours, jeopardized by concerns. The dollar weakened into a low of 1.3440, but the Euro fought to sustain a movement above 1.3420.
The US Treasury funding inflows report recorded net inflows of US$48.1bn for October compared with expectations of a US$55bn shortage and down from US$67.5bn the preceding month. The inflows in the US were encouraging using a net inflow of shares to the month. There was, nevertheless, an increase in US investment flows overseas to US$15.2bn, the maximum figure since July 2000. This and this may raise fears and the danger of weakness that is self-reinforcing, respectively . Concerns will raise and will reinforce the significance of the account information that is present now as the funding inflows figure was less. Another amount of more or US$ 175bn to the account would endanger dollar opinion.
Analysis provided by http://www.investica.co.uk
The dollar stayed on the defensive for much of the previous 24 hours, jeopardized by concerns. The dollar weakened into a low of 1.3440, but the Euro fought to sustain a movement above 1.3420.
The US Treasury funding inflows report recorded net inflows of US$48.1bn for October compared with expectations of a US$55bn shortage and down from US$67.5bn the preceding month. The inflows in the US were encouraging using a net inflow of shares to the month. There was, nevertheless, an increase in US investment flows overseas to US$15.2bn, the maximum figure since July 2000. This and this may raise fears and the danger of weakness that is self-reinforcing, respectively . Concerns will raise and will reinforce the significance of the account information that is present now as the funding inflows figure was less. Another amount of more or US$ 175bn to the account would endanger dollar opinion.
Analysis provided by http://www.investica.co.uk