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DENVER, CO, USA - 12/14/98
SUMMARY
The House Judiciary Committee pushed through four articles of impeachment
against President Clinton over the weekend. If the House of Representatives
votes yes on impeachment this Thursday, the process will move to the US
Senate which can only remove the President with a two-thirds vote. A
two-thirds vote by the Senate is not considered a likely outcome. This
combined with worries over US fourth quarter earnings have the dollar still
offered. On Wall Street, stocks are down 45 and the long bond is up 17 ticks
yielding 4.991.
ASIA
The Japanese yen gained against the dollar spurred by Clinton impeachment
fears. The yen gains came despite the Nikkei 225 losing more than two
percent and a worsening of Japanese business confidence in December. The
Thai baht was little changed but dealers said it would remain well bid ahead
of Tuesday's Financial Sector Restructuring Authority loan auction. The
Korean won firmed on Monday standing just above the key 1200 level, but
trading was cautious amid fears of central bank intervention. The Aussie and
New Zealand dollar are softer on commodity prices.
EUROPE
Dollar/mark managed a slight rise at the US open as mark/yen dropped to 70.
Dealers still believe dollar/mark is a "good sell." Sterling firmed against
the dollar in thin trade on Monday. A heavy week for UK economic data began
with producer output prices showing a fall by 0.2 percent in November
compared with the previous month. With no signs of inflation in the UK
economy, analysts agree that further cuts in interest rates may be near.
AMERICAS
The Canadian dollar is firmer today due to USD weakness across the board.
Weak commodity prices still are weighing on the local currency. In
cross-trading, the Canadian dollar slipped against the yen but is firmer
against the mark.
Respectfully,
Richard Chehovin
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