Refco and the dollar

[Lon Eagle]

At the time of World Com the dollar was trading around the 88 level against the Euro. With the worry about US accounting standards institutions piled out of the US and the dollar tanked.

The US has huge budget and current account deficits and relies on foreign insitutions buying dollars to fund these. Any chance that the Refco problems will bring attention back to these deficits and increase worries about their sustainability?

 

[ssternlight]

Quote from Lon Eagle:

At the time of World Com the dollar was trading around the 88 level against the Euro. With the worry about US accounting standards institutions piled out of the US and the dollar tanked.

The US has huge budget and current account deficits and relies on foreign insitutions buying dollars to fund these. Any chance that the Refco problems will bring attention back to these deficits and increase worries about their sustainability?

No.

 

[nassau]

I personally don't think so..
several trillion traded daily and it is my understanding that the USA controls 80-90percent...one way or the other...

could case false drops to create buying op's ..

I can tell you several years back when Bush in Dec fired two key personell the currency market drop several hundred pips in minutes...I know it cost me thousands..unfortunately...
One minute in the money thousands and in seconds I lost over 40k....

w

 

[aPismoClam]

Quote from nassau:

One minute in the money thousands and in seconds I lost over 40k....

sometimes it juss be's that way.

 

[range]

Quote from Lon Eagle:

At the time of World Com the dollar was trading around the 88 level against the Euro. With the worry about US accounting standards institutions piled out of the US and the dollar tanked.

The US has huge budget and current account deficits and relies on foreign insitutions buying dollars to fund these. Any chance that the Refco problems will bring attention back to these deficits and increase worries about their sustainability?

I agree that the Refco situation is bearish for the dollar, but much less so than WorldCom since its visibility is less and corporate fraud is no longer shocking. But, there is so much going on in FX, it may not be noticeable.

 

[riskarb]

YART

 

[Trader/God]

No.

Its a non-event. For some reason Bloomberg posted and article citing it as a reason for currency movement, must be a slow news day.

Trader/God

 

[just21]

I wonder how much the sell off in stocks this week has been hedge fund selling in the futures as they anticipated a bankruptcy at refco?