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adridado
02-15-2005, 04:22 AM
The US data now will be significant since it will help establish the industry tone before Greenspan's testimony on Thursday and Wednesday to congress. Since markets have been wavering in their own risk assessment of the US current accounts deficit, specifically, the US Treasury report on capital inflows will be significant. There is assurance that the deficits could be funded helped by the recent comments of Greenspan, yet this assurance is delie. Confidence would be reinforced by A figure for capital inflows in the capability and will enhance dollar assurance. Conversely, dollar assurance would be eroded by a figure under US$ 50bn .

There are expectations and the Fed remarks on Wednesday are very likely to be significant in deciding expectations of the rate of tightening. Hints that the Fed will pause the process would harm the dollar, while the buck would be supported by remarks speculating a tightening more than. Greenspan is very likely to offer you some aid but he's more inclined to voice concerns over inflation that ought to provide dollar assistance that is moderate. There'll also be interest in the dilemma of inflation. Greenspan has resisted pressure to get an inflation goal and resistance would be negative for the US money.

As he said that risks to price stability had improved 21, the comments from ECB manhood Papademos provided some Euro service. These remarks were compared to the remarks made by ECB members. Extrinsic remarks will stay in focus, although A change in rates appears improbable. Euro-zone fourth-quarter expansion was unsatisfactory with the yearly rate held to 1.6percent. The German ZEW index was, however, stronger than anticipated at 35.9 for February that will provide some Euro support.

Analysis provided by http://www.investica.co.uk