Shhhh...dont tell Daiello ;)~
& cAt....still dont quite get it....if rates are kept high....even considering the fundamentals (which have been for the most part all but non existent over the last several mos I would add) in relation to strength & weaknesses in a specific economy, when a currency has a higher interest rate, shouldn't that help to keep it propped up in relation to that of other currencies w/lower rates?
Thus I dont quite understand why folks (traders as the article said) would be concerned that if the ecb keeps rates high or doesn't cut, that they're worried that the euro will fall? I agree in that based on the fundi's, the euro & all other currencies (especially the dollar) need to all trend lower over the coming mos.
I get the carry trade idea & all that but still aint gettin what was meant by the comment in question?
Doesn't make sense...if rates are not cut, a currency shouldn't have downward pressure b/c of that action....now if u r talkin about the fundi's....sure, but that's not what the article said.
