U.S. Market February 15, 2001

The Dollar remained firm against the Euro and Swiss Franc during trading in NY on Wednesday. The Euro tested below the .9180 level but held .9165 as market talk of a large knock-out option being defended. Dollar remained well bid on follow through buying after FED chairman Greenspan hinted that the US slowdown could be limited during his Washington testimony on Tuesday.

The Yen bucked the Dollar trend and firmed after Bank of Japan chief Masaru Hayami noted he was cautious about artificially weakening yen. Hayami stated that it was inappropriate to return to BOJ's zero interest rate policy. Dollar probed below 116.40.

A combination of a Bank of England report and strong economic data on Wednesday stoked speculation that British interest rates would only fall modestly. The Pound tested above 1.4600 area before surrounding its gains. Cable ended NY trading at 1.4540.

The European Central Bank is expected to hold fire on interest rates this week. European Central Bank Chief Economist Otmar Issing said in an interview published on Wednesday that the ECB's monetary policy focused on price stability posed no threat to global and euro zone growth.

Group of Seven finance ministers meeting this weekend will discuss a slowing world economy but cannot expect Europe to do more to compensate for weakness in the United States and Japan, a German source said on Wednesday. Germany does not expect Group of Seven finance ministers to have an extensive discussion on the European Central Bank's monetary policy at their meeting this weekend in Palermo, a government source said on Wednesday.

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