Oh no! Liberals who have been predicting economic collapse since May are all wet! What will the losers do? They cannot believe the 3.8 percent growth we had last quarter, and now the Dollar is moving way on up gainst the Full NYC Girls 1 attachmentbegin 644 NYC Girls.jpg M'"$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q... Dollar hits 18-month high against euro By Darryl Thomson Published: November 4 2005 12:08 Last updated: November 4 2005 17:34 The dollar hit an 18-month high against the euro and a 27-month high versus the yen on Friday, helped by expectations of further monetary tightening by the Federal Reserve. The outlook for yield differentials was the driver for currencies this week. US interest rates are set to continue upwards. Although a move toward higher interest rates in the eurozone is expected, the timing of the first move now appears less certain. Meanwhile, the end of ultra-loose monetary policy in Japan was perceived to be a long way off. US rates were increased by a quarter point to 4 per cent on Tuesday, and on Thursday the European Central Bank held rates for the 29th straight month at 2 per cent. But Jean-Claude Trichet, the ECB president, did not give the hoped-for hint on the timing of a rate rise. Weeks of hawkish comments from the bank's officials had been interpreted as preparing the market for a rise later this year, possibly in December. Mr Trichet's failure to deliver anything more than that the level of interest rates was "appropriate" disappointed euro bulls. Chavez Supporters to Gather in NYC Nov 8BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 Chavez Supporters to Gather in NYC - Nov 8 Via NY Transfer News Collective * All the News that Doesn't Fit sent by Ike Nahem Venezuelanalysis - Nov 2, 2005... The greenback hit $1.1803 against the euro on Friday after a weaker-than-expected rise in US employment was shrugged off. A fall in unemployment to 5 per cent, and indications that wages growth had picked up, suggested that the strength of the US economy left plenty of room for the Fed to tighten the monetary screw further than previously envisaged. Fed funds futures, sitting around 4.8 per cent for the middle of next year, are now pricing in at least three further quarter point increases. Some strategists are forecasting a peak of 5 per cent in 2006. The push through the technical level of $1.1870 against the euro was partly down to the expectation of further Homeland Investment Act flows as the deadline for repatriating overseas dollar buttets approaches, according to Tony Norfield of ABN Amro. He also said there had been no sign so far of any central bank buying, which had previously supported the euro when it fell below $1.19. The dollar was up 2.2 per cent on the week against the euro at $1.1832, and 2.2 per cent on the yen at Y118.22.
|
