Intraday Market Thoughts

Archived IMT (2008.09.22)

by Ashraf Laidi
Sep 22, 2008 15:10

105.80 yen and $1.8480 in cable were attained as dollar losses intensify. Despite the deflationary repercussions of the sharp break in credit formation from struggling banks and the deflationary implications of the increasingly weak macroeconomic dynamics of escalating joblessness and falling consumer demand, the required monetary policy response from the US and overseas central banks will have to take the road of easing, thus, propping gold prices anew against the dollar and rest of major currencies. The rally in oil prices will be less pronounced than that of oil, hence my long-held prediction of a rebound in the gold-oil ratio from its 5.8 lows in July to the current 8.4.


Latest IMTs