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100.060 US Dollar index
http://quotes.ino.com/charting/histo...=15&a=50&v=d12
more to come ... Last Price 100.110 Settle Time 16:50 Previous Close 77.736 Low 99.197 52wk High 100.06 52wk Low 78.906 Wholesale Prices in U.S. Unexpectedly Fall for Fourth Month - Bloomberg Business This could be a double edged sword ... https://grumpajoesplace.files.wordpr...pg?w=468&h=312 A little in-yo'-face nationalism |
Double edged sword? You're saying its deflationary?
The bottom line is this. A strong dollar is caused by good results and better than expected jobs report which means higher expectations of an increase in interest rates (which will not happen this year). Interest rate increase would mean the dollar has more yield and therefore people are flocking to it. A stronger dollar means lower prices as you say and combined with a low oil price, even lower prices and therefore inflation. Therefore also lower corporate profits but also because it makes American exports more expensive for trading partners. The US government will never allow the US dollar to strengthen too much so you can expect QE next year. It's just irrational that a currency that has been printed to extinction is as strong as it is. It's good for us holders of USD but it makes no sense. |
100 is good
Too much is 3v1L >:O} American manufacturers selling globally will be negatively impacted. I read an article about Timken, a US global seller of roller bearings, experiencing FX earnings shortfalls. American manufactures will also face stiff price competition from foreign manufacturers. The problem is you need to have a -2% Fed rate -- unheard of! But there is no place to go to restore the traditional inflation targets. Or, things have changed -- get used to it. |
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