March 24, 2008
The SPECTER of Coordinated Central Bank Intervention
Dollar’s Moves Force Whispers of `I’ Word; G-7 Frets
“After the Federal Reserve’s U.S. Trade Weighted Major Currency Dollar Index declined to 69.2631 on March 18, the lowest in 37 years, Hans-Guenter Redeker, global head of currency strategy in London at BNP Paribas SA, said he sees parallels between now and 1995. That was last time central banks stepped in to arrest a slide in the greenback by purchasing and selling currencies to influence exchange rates.”
Here’s the Euro:Yuan monthly chart which may be putting in an important top?
I’ve flipped the chart here for easy reading. :)
James Bond fans will remember that SPECTER stood for SPecial Executive for Control, Terrorism, Extortion, and Revenge (reverse the last two if you use the British spelling). Don’t worry, I’m not a loon… just a fan of Bond.
