wmeubank@ocp.kcmo.com
TAURUS COMMODITIES
133 W. Boscawen Street, Winchester, Virginia
(November 28, 1997) CURRENCIES: BRITISH POUND–Many floor traders suggested that the market action here and throughout the FOREX was distorted this past week due to the upcoming holiday. Our indicators are such that we expect to see another buy signal momentarily, but given the international situation, nothing would surprise us.
DEUTSCHEMARK–Prices here are coming under sharp pressure as the dollar is taking support from expectations that Germany will be less inclined to raise interest rates as previously thought. We are at a juncture, mathematically, where our indicators could come into alignment either to the short or the long side.
JAPANESE YEN–Our shorts here look good as the continuing economic weakness and turmoil in Japan keep weighing on the yen. With the latest news, that the Tokyo City Bank has failed, traders fear the Japanese government could take actions over the Thanksgiving holiday period to support its troubled financial sector, providing the yen with its only support.
SWISS FRANC–The franc is gaining support from a flight to quality out of fears the economic turmoil in Southeast Asia could continue, as is the U.S. Dollar, creating a situation where there is a sort of Mexican standoff until one or the other prevails either due to investor perceptions of the safest haven or due to other fundamental developments.
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