COMMODITY INSIGHT

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(December 14, 1997) CURRENCIES: The only two currencies that I have been involved with for the past several months have been the Canadian Dollar and the Japanese Yen. My work has been suggesting that both currencies would bottom and head higher into 1998. However, the yen and the Canuck have also been working lower over the past three months along with most other markets. Attempting to be long either one of those currencies has been no more successful than attempting to be long gold, grains, petroleum and cattle.

But the Bank of Canada did raise interest rates a half point on Friday in an attempt to support the Canuck. In addition, they were aggressive buyers of their own currency. The Canuck should rally from current levels.

My work also suggests that the yen is close to a major bottom. But the Asia equity and currency crisis continues to lay heavily upon all Asian currencies. And at this time that includes the yen, too.

Jerry F. Welch

Consensus National Futures and Financial On Line Index

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