For the complete report in the Telegraph click on this link
Super-euro may spark a currency war while French battle the ECB - by Ambrose Evans-Pritchard
Global currencies are going through a major realignment as Europe takes over as the engine of world growth and the US starts to trip, setting off an exodus from dollar assets.The global system is not adjusting in an orderly fashion because Asia's main currencies are fixed or managed, leaving Europe to bear the full brunt of the dollar slide. The Chinese yuan tracks the dollar, while the yen has depreciated by more than 60pc against the euro since 2001, the result is near-zero rates in Japan.
Jean-Claude Trichet, the ECB's president, gave a virtual guarantee that interest rates would be raised again to 4pc in June, narrowing the yield gap with the US. "I would not say today anything aimed at changing expectations for the month of June," he said.
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