Dollar Slightly Lower, Rate Cut No Longer Seen As Sure Thing.
Apr 29th, 2008 | By Doug Casey | Category: Politics & EconomicsIn the currency market, the dollar was slightly lower against the euro. Late Monday, the euro was trading at $1.5642 vs. $1.5625 on Friday. Traders breathlessly await the Federal Reserve’s critical decision, with sentiment still running strongly in favor of another cut.
However, “There was some ‘just-in-case’ position squaring overnight,” wrote David Watt, of RBC Capital Markets. “The market is poised to jump on any sign of a pause and elevated inflation concerns to justify the exceptionally premature speculation about a rate hike by year end.”
The Fed’s rhetoric will be scrutinized almost as much as what it does, since inaction now won’t be taken as an end to falling rates unless the Committee is decisive about it.
“We’re not calling the end of the rate cuts,” wrote Ashraf Laidi, chief foreign exchange strategist at CMC Markets US.
“Regardless of whether the Fed holds rates unchanged in June, we expect the easing campaign to resume” in the third quarter, Laidi said, citing a persistent credit crunch, slack labor markets and the continued slowdown in housing.
Advertisement
Latin America is booming. And our colleagues in Buenos Aires, Argentina are well placed to help you profit from the many value opportunities south of the border. They have launched an email report service entitled LatInforme Diario that covers both Latin American and international investment opportunities. It's written daily in Spanish by South American market experts, Horacio Pozzo and Paola Pecora. If this is something you would be interested in, I encourage you to click here ... and by the way, it's free!
Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.