MarkG Posted April 4, 2006 Share Posted April 4, 2006 http://news.moneycentral.msn.com/provider/...0404&ID=5617724 China should trim its holdings of U.S. debt, a senior Chinese official said, rattling markets on Tuesday in the run-up to a visit by President Hu Jintao to Washington this month. Wonder if this is why the dollar just sank like a rock past $1.75 to the pound? And whether it will mean more rate hikes by the Fed despite the slowing economy? Quote Link to comment Share on other sites More sharing options...
kingofnowhere Posted April 4, 2006 Share Posted April 4, 2006 http://news.moneycentral.msn.com/provider/...0404&ID=5617724 Wonder if this is why the dollar just sank like a rock past $1.75 to the pound? And whether it will mean more rate hikes by the Fed despite the slowing economy? It because of the Institute for Supply Management survey in the US, which was weaker than expected, leading people to reduce their interest rate expectations for the US. Quote Link to comment Share on other sites More sharing options...
MarkG Posted April 4, 2006 Author Share Posted April 4, 2006 Aha, I haven't seen any reports about that one yet. Quote Link to comment Share on other sites More sharing options...
kingofnowhere Posted April 4, 2006 Share Posted April 4, 2006 Aha, I haven't seen any reports about that one yet. Try here http://www.forbes.com/markets/feeds/afx/20...afx2644873.html The ISM revealed that the pace of manufacturing growth decelerated in March. Its main index fell to 55.2 pct in March from 56.7 pct in February against expectations of a modest pick-up to 57.3 pct. 'The pullback in growth expectations, driven by the dip in the US ISM manufacturing report, has left the dollar, under pressure,' said Steve Pearson, currency strategist at HBOS. Quote Link to comment Share on other sites More sharing options...
Geek Man Posted April 4, 2006 Share Posted April 4, 2006 Try here http://www.forbes.com/markets/feeds/afx/20...afx2644873.html The ISM revealed that the pace of manufacturing growth decelerated in March. Its main index fell to 55.2 pct in March from 56.7 pct in February against expectations of a modest pick-up to 57.3 pct. 'The pullback in growth expectations, driven by the dip in the US ISM manufacturing report, has left the dollar, under pressure,' said Steve Pearson, currency strategist at HBOS. Or here: BBC report China is a major funder of US debt, holding about £260bn (£149bn) in US Treasury bonds - second only to Japan.Any reduction in China's dollar assets could hit the US economy. Should China cut its US dollar holdings, this could drive up long-term yields on US bonds, which could in turn put pressure on interest rates. Quote Link to comment Share on other sites More sharing options...
MarkG Posted April 4, 2006 Author Share Posted April 4, 2006 The ISM revealed that the pace of manufacturing growth decelerated in March. Its main index fell to 55.2 pct in March from 56.7 pct in February against expectations of a modest pick-up to 57.3 pct. Wasn't that reported yesterday? The pound was bumbling along today then suddenly spiked up, so I presume something today triggered a sudden urge to sell dollars or buy pounds unless it was just one foreign market opening for business that had been a bit slow to react before. Quote Link to comment Share on other sites More sharing options...
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