Tuesday, July 05, 2005

Short Ratio

Safe Haven | Our U.S. Dollar Index Revision
Our bullish views on the U.S. Dollar Index is made the more authoritative by the fact that European countries such as Sweden and Poland have either cut or are beginning to further cut their short-term rates. In fact, there is now widespread speculation that the European Central Bank will cut by 50 basis points by the end of this year. The United Kingdom is also probably not far behind. It is usually rare for the U.S. Central Bank to lag the action of the majority of the world's Central Banks, but until the Fed reverses course and start to cut rates, our bullish view will remain intact.