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Looking for pockets of dollar
strength
Lisa Twaronite
MarketWatch
Tuesday, April 1, 2008
One hears so much about the battered dollar lately
that it's easy to forget the greenback is beating up a few of
its major rivals, and will likely continue to do so this month
-- and might even take a swing at some of the big bullies that
have been knocking it down the most.
Investors betting on a further dollar fall against
the euro and the yen should prepare for the possibility that the
dollar could make up a bit of lost ground against either one -
or possibly both. Moreover, the dollar is likely to keep gaining
on its Canadian counterpart, which has been hurt by lower U.S.
growth prospects.
"In April we are expecting to see further stabilization
and a modest recovery in the U.S. dollar. This will create a foundation
for a more sustained recovery later in the year," said Adam
Hewison, president of MarketClub.com, an Annapolis, Maryland-based
a technical analysis site.
(Article continues below)
Some investors believe the end of the U.S. Federal
Reserve's interest-rate easing cycle could be in sight, meaning
that some are starting to position for the end of one significant
source of fundamental pressure on the dollar. Lower interest rates
erode the returns on dollar-denominated assets.
"It would appear that U.S. interest rates are at or close
to their lows for the year. We had been looking for the Fed funds
rate to trade down to the 2 to 2 .5%-level. We feel the market
has achieved that downside target zone," said Hewison.
Full
article here.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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