Reply #1: daily dollar watch

[UpInArms]

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 89.75 Change +0.66 (+0.74%)

http://www.freep.com/money/business/green16e_20040616.h...

ALAN GREENSPAN'S TESTIMONY: Inflation is small concern for Fed

WASHINGTON -- Alan Greenspan downplayed inflation fears and sounded a cautiously upbeat note about U.S. economic recovery on Tuesday in Senate testimony before the start of his fifth and final term at the helm of the Federal Reserve.

Greenspan, 78, is about to embark on what may be his last major challenge as Fed chairman: raising interest rates from today's unusually low levels without destabilizing financial markets or derailing the recovery.

"We seem to be on track, but it's -- as us duffer golfers like to say -- it's not a gimme putt," he told the Senate Banking Committee at a confirmation hearing for his reappointment.

"I think that this particular recovery has some momentum and does not look to be short-lived."

His remarks suggested that the Fed would begin by raising rates a modest quarter of a percentage point at its next meeting on June 29-30, rather than by a half point.

But Greenspan said terrorism remains a major risk for the economy.

"Going forward, we must remain prepared to deal with a wide range of events," he said. "Particularly notable in this regard is the fortunately low, but still deeply disturbing, possibility of another significant terrorist attack in the United States."

Inflation remains a wild card, and a report released Tuesday that found consumer prices rose in May at their fastest pace in more than three years highlighted that risk. The Consumer Price Index jumped 0.6 percent last month and is up 3.1 percent over the past year, the Labor Department reported.

While rising prices dent consumer pocketbooks, economists are heartened that the increase mainly reflects higher gasoline and food prices and not a broader inflationary trend.

The core Consumer Price Index rose 0.2 percent in May, slower than in previous months. It factors out food and energy costs because they vary so much from month to month.

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http://www.fxstreet.com/nou/noticies/afx/noticia.asp?fo...

FOREX-Dollar shakes off CPI and Greenspan, gains broadly

LONDON, June 16 (Reuters) - The dollar retraced Tuesday's sharp losses against the euro and gained one percent against the Swiss franc on Wednesday as markets took a calmer view of recent dovish Federal Reserve comments and U.S. inflation.

Investors had pushed the dollar down one cent versus the euro on Tuesday, after growth in core U.S. consumer prices came out smaller than markets had bet and Fed Chairman Alan Greenspan sounded more dovish on the threat of inflation than previously.

The data and Greenspan's comments dashed growing speculation that the Fed may raise rates by half a percentage point on June 30 instead of the widely expected quarter-point hike.

But the dollar's losses were trimmed on Wednesday after the currency appeared to find support on technical trading charts and investors focused on what many analysts believe is an inevitable hike later this month.

"We've seen some dovish comments and moderate inflation but the Fed is still raising rates in June," said Jim Webber, chief economist at TD Securities in London.

"Most of the dollar's recovery this year is due to the strong growth story, and people are going back to that."

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YeeHaw! Look at that dollar go! There's no inflation and we don't care that the interest rates may go up slowly! What a deal!

Great 'toon, Ozy - and in salute, I give you the latest numbers, initially brought to you by our dearly departed Saint RayGun and currently funded by his voodoo student GWB



The estimated population of the United States is 294,323,541
so each citizen's share of this debt is $24,552.72.

The National Debt has continued to increase an average of $1.71 billion per day since September 30, 2003

Have a Great Day Marketeers (and lurkers)!