OTCQB:UEXCF - Post by User
Post by
daniel52on Aug 15, 2007 2:48am
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Post# 13246784
Major disruption in foreign currency mkts.
Major disruption in foreign currency mkts.The yen has strengthened from 118 to 116 to 1$ and this strengthening is shutting down the liquidity provided by the carry trade. The British Pound has moved from 2.04 to 2.02 to a dollar and dropping. The Euro is weakening significantly against the dollar. All of this is further reducing the carry trade which is further reducing international liquidity. Central Banks may well need to pump much more money into the world markets and/or aggressively change interest rates.
Very spirited debate among analyists in Europe and Asia on what will happen today when the markets open.