|
Posted by fxrecommends@gmail.com on August 5, 2007, 11:02 pm
Carry trade unwinding containing the current market sentiment. The
belief that the recent high yield currency run was excessive could
support the Japanese currency versus the single currency and the pound
amid The decline of the stock market in US and this mistrust wave
which is looking persisting and prolonged not like what's happened
earlier this year after Greenspan's comments concerning the bubble in
the Chinese market as this time it is underpinned by the problem of
the sub-prime market in US and the fear to be spread into other
sectors and the crediting market generally as what's happened after
last Friday Bear Sterns executive said that credit markets in the US
were at their worst in 22 years
At any case the greenback is still depressed by the same problem and
the expectations of that the worse has not come yet and there can be a
prolonged negative impact on the US economy and the crediting
stability in US.
We need to wait this week for UK quarterly inflation report as a clue
to the interest rate outlook in UK and the pound as well. It is
important to know more about the MPC stance after Trichet's recent
comments that it is strongly vigilant currently which is widely
indicating another hike at its coming meeting next month. Comments
waited till the release of US non-farm payroll to start to be bought
by the market and taking effect pushing the EUR above 1.38 and it
looks nearer this time to 1.4
Best wishes
FX Consultant
Walid Salah El Din
Mob: +20 12 465 9143
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap