15 May 2001, 10:17 The dollar was little changed from midday levels at the close Monday
even as traders squared positions ahead of Tuesday's Federal
Reserve Bank Meeting. "The market will be like this for the next 20-odd
hours," said one New York trader, commenting on the lack of interest in
currency markets on Monday afternoon. John McCarthy, director of
foreign exchange at ING Barings in New York, thought a 25 point cut
might be confusing for the market. "Some people might come and buy the
euro-dollars on that, but any rally should be short-lived," McCarthy
added. He agreed that a 50 basis point cut would drive the dollar
higher, with the market's belief that a pro-active Fed should mean
stronger U.S. growth ahead.
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