wmeubank@ocp.kcmo.com
COMMODITY INSIGHT
152 Ennis Lake Road, Ennis, Montana
(September 28, 1997) CURRENCIES: The Canadian Dollar climbed 21 points from last Friday to this Friday. The strength was in response to continued rumors of another hike in interest rates by the Bank of Canada. A hike in rates is viewed as bullish.
Those long the Canuck should sit tight. My work continues to suggest the BOC will push rates higher in an effort to fight the long term implications of a strong Canadian economy. Namely, inflation.
Also, I wish to probe the long side of the British Pound. But it closed sharply lower on Friday, and I am fearful of another plunge this week to rid the market of weak longs. Nevertheless, buy (1) December British Pound at 1.5860 or lower with a 1.5500 intra-day stop.
My work suggests the Brit and the Canuck will move higher into 1998. Buy breaks.
Jerry F. Welch
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