javizmendi
08-22-2005, 06:26 AM
The technical harm to the euro last week seemed to indie the end of buck ”correction,” setting the stage for a buck move to fresh highs after in year. The reason for euro bulls seems twofold:
1) Sudden euro-zone financial strength
two) Dollar yield seem discounted from the industry
Euro-bulls are determined within their view that buck return appeal was ignored by the market. They do not appear to worry at least that expansion prospects may be disregarded.
We also have seen an increasing number of commentators heating to the present account and US budget deficit rationales. The account canard is the justifiion to snare into a dollar. After all, the buck has to depreciate for the account is your headline. Well, no it does not. But that is not the purpose. The purpose is that the very same people who assume the dollar has to fall, along with the euro increase, due to the present account, appear to conveniently overlook the chance that euro-zone expansion is very determined by exports to the US and aided in part by a relative decrease in the value of the euro against the dollar.
Is your dollar ”correction” over? We believe so. But we see that a affair for a little. We believe: capital flow, growth, and return push against the dollar.
Quotable
”The actual problem is that the US market is simply too leveraged. Starting with the home business, the nation is too determined by derivatives markets to make the illusion which interest rate risk may be conjured away.”
John Dizard
1) Sudden euro-zone financial strength
two) Dollar yield seem discounted from the industry
Euro-bulls are determined within their view that buck return appeal was ignored by the market. They do not appear to worry at least that expansion prospects may be disregarded.
We also have seen an increasing number of commentators heating to the present account and US budget deficit rationales. The account canard is the justifiion to snare into a dollar. After all, the buck has to depreciate for the account is your headline. Well, no it does not. But that is not the purpose. The purpose is that the very same people who assume the dollar has to fall, along with the euro increase, due to the present account, appear to conveniently overlook the chance that euro-zone expansion is very determined by exports to the US and aided in part by a relative decrease in the value of the euro against the dollar.
Is your dollar ”correction” over? We believe so. But we see that a affair for a little. We believe: capital flow, growth, and return push against the dollar.
Quotable
”The actual problem is that the US market is simply too leveraged. Starting with the home business, the nation is too determined by derivatives markets to make the illusion which interest rate risk may be conjured away.”
John Dizard