Analysts cautious on US reflation

- By FX Markets Staff
- @FXMarkets_
- 21 Jul 2003

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"It will ultimately work in Greenspan’s favour, if he can balance the market’s optimism with a sense of caution," said Jane Foley, FX strategist at Barclays Capital in London. "This would hold back long-term interest rates but also slow the pace of dollar recovery."

The dollar was immediately boosted following Greenspan’s speech, moving from above 1.13 before the speech, to 1.1180 later that day, where it remained to the end of the week. But reflation will be even more sensitive to the next

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