Everyday, I receive a lot of good research from a variety of banks, which I seldom report on. Generally, I have to assume that my readers will always have far more of a clue what is driving the market than I do and will have read the same research already. If they don’t, they should look for another job.
However, I’d just like to take this opportunity to thank all the banks, currency strategists and economists who send me their reports. Most of it is really good, far better in my opinion that the frequently tainted research that’s all too often put out by analysts – or analists as I call them – in other markets.
Over the past couple of weeks, I’ve seen a few brave souls predicting the dollar has bottomed. This week, as you all know, the dollar has sunk to historic levels against the euro, prompting Daniel Snowden at ABN Amro to ask this morning how low can it go.
“Overnight the EUR gained new highs against the USD, reaching 1.4319 at 05.52 GMT. The other G10 currencies also enjoyed strength against the USD. The moves seem to have been driven largely by stronger expectations of cuts in the fed funds rate, starting at the October 31 FOMC meeting,” Snowden writes.