Economic Conditions

29 August 2016

Summer goes On, but not the Market Doldrums

The US dollar had spent the last full week of August mostly confined to narrow trading ranges against the major currencies until the Yellen spoke as at the end of the week.  She confirmed the constructive assessment of the economy...

25 August 2016

Post-Yellen, Trading Incentives to Resume Next Week

The US dollar remains mostly within the ranges seen yesterday against the major currencies. The market awaits fresh trading incentives and the end of the summer lull, which is expected next week.  The Jackson Hole Fed gathering at which Yellen...

24 August 2016

Can the Yellen Build-up be Too Much?

The US dollar is going nowhere fast.  It is narrowly mixed against the major currencies.  The market waits for fresh trading incentives, with much hope placed on Yellen's presentation at Jackson Hole at the end of the week.  Is it...

22 August 2016

The Dollar, What to Watch For, and Jackson Hole

The US dollar lost ground against nearly all the major currencies last week. The sole exceptions were the Australian dollar, where pressure ahead of the weekend following Moody's decision to cut the outlook for five Australian banks wiped out the previous...

19 August 2016

After a Rough Week, the Dollar Finds a Footing

The US dollar is trading firmly ahead of the weekend as part of this week's losses are recouped. The gains are sufficient to put it higher for the week against the Australian dollar.  If its gains against the Aussie were...

18 August 2016

Maybe Wage Inflation is the Answer?

All that is solid is melting.  After Copernicus, we know that earth is not the center of Creation.  Darwin showed us that humans are part of the animal kingdom.  Freud told us we are not even masters of our own...

17 August 2016

Fed President Dudley Upbeat on H2 U.S. Growth

The US dollar is enjoying a mid-week bounce against all the major currencies.  It appears that participants in Asia and Europe are giving more credence to NY Fed Dudley's comments yesterday. Although many in the market have given up on...

16 August 2016

Are Shifting Views on Fed Policy Moving the Dollar?

The US dollar is being sold across the board today.  The US Dollar Index is off 0.65% late in the European morning, which, if sustained, would make it the largest drop in two weeks.  The proximate cause being cited by...

15 August 2016

So Much to Watch with Only Two Eyes

Japan's Q2 GDP:  The week begins off with the first estimate of Japan's Q2 GDP.  Growth is expected to slow from 0.6% in Q1 to 0.2%-0.3% in Q2. Consumption likely slowed more than investment increased.  The GDP deflator, another measure of...

15 August 2016

Economic Data may not Help the Dollar

The dollar's push lower that we anticipate until later in the month gained momentum following the disappointing US retail sales report before the weekend.  The dollar's technical tone has deteriorated, while the economic data is unlikely to be sufficient to...