6-5-08
18:35p GMT – After the ECB’s announcement that the European Central Bank may actual raise rates by the end of the month the markets are looking for direction. It seems a shift is coming but theories abound as to which way that shift will go. The US signaled it will raise rates by the end of the year, NZ signaled it would start lowering rates during 2008 and ECB will possibly raise.
Meanwhile news out of the US economy is mixed at best.
Some argue we are at the beginning of the end of the worst in the US economy while Europe is just starting to have the bad news come out, especially in UK. The data coming out in the next month will help to determine the direction of these pairs. In the short-term, it seems the higher rates of the Euro and near-future hawkish raises could happen much sooner than a USD rate hike probably means further Euro strength against the greenback.
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