“Even though risk aversion might be on the rise and could drag on the dollar slightly, there is still a very, very strong equity flow going back into the United States.”
“Because of Katrina we will have a pause in September. The aftermath of shocks is still not appreciated and oil prices are still high. The effect is that with the background of structural problems and (losing cyclical support) the dollar is in a phase where it should weaken.”
“The U.S. dollar is being held firm by short-term rate expectations and until there is some sign of visible weakness in the U.S. housing market or receding inflation expectations, euro-dollar will likely remain under pressure,”
“The U.S. dollar is being held firm by short-term rate expectations and until there is some sign of visible weakness in the U.S. housing market, or receding inflation expectations, then euro-dollar will likely remain under pressure,”
