Foreign Market Watch - Daily information on the world's financial markets (United States, Japan, London, Switzerland, Canada, etc.)
Sun Dec 11 00:08:54 2005 -
Will the Greenback head South in 2006?
Interest rates may cease their gradual increase in the near future as the Federal Reserve changes course in 2006. The boost in rates has been considered by some to be the source of support for the greenback in the end of 2005. Easing in monetary policy may provide more support for the euro come the increase in rates by the ECB.
Rates in Europe and Japan have been flimsy relative to the federal funds rate in the US and such a differential has been attractive to foreign investors seeking a vehicle that would provide a healthy return for their investments.