anuarinvestor
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- Dec 13, 2007
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so EU n GU akan down2 sampai agak2 tahap bape
keke
Insyallah bakal berlaku.....
The US Federal Reserve may continue to cut interest
rates aggressively during the first half of 2008 in reaction to the credit crisis, housing pressure and political pressure. We see US Fed Funds trading at 3%, and then reversing direction during the second half of 2008 as inflation pressures mount and must be addressed. Fed funds could trade at 4.25% in 4Q08. Meanwhile, we expect the European Central Bank (ECB) will continue to favor an increase on interest rates well into the latter stages of the second quarter. During the summer of 2008 we see this trend reversing dramatically and the dollar regaining some of its previous status as the world's reserve currency.
By year end 2008 we predict the Euro will be trading below US$1.20.
We see the global credit crisis growing and spilling over from mortgages into credit cards, auto loans, and student loans. The US economy is forced into a recession with the Fed rate cuts providing ineffective in stimulating the overstretched U.S. consumer.
The Bank of England is pushed to cut rates aggressively as a slump in housing prices and over stretched consumer forces their hand. We may see rates dropping to 4.00% and cable (GBP/USD) falling back to 1.7000.