Foreign Exchange Insights and Next Week
Dollar-U.S. CPI Inflation Different Now from 1970s Experience
October 19, 2022
Intuition suggests that a spike in U.S. inflation would be associated with a depreciating dollar, and that’s what happened from the mid-1960s to 1980. Inflation measures change in the internal purchasing power of U.S. money, and changes in the dollar’s exchange rate quantify changes in the external purchasing power of money. The inflation problem that […] More
New Overnight Developments Abroad - Daily Update
Superdollar Rises Again but This Week’s Bear Market Rally in Stocks Appears Out of Steam
October 19, 2022
The dollar climbed overnight by 0.9% against the euro and Swiss franc, 0.8% relative to sterling, 0.5% versus the Australian dollar, and 0.4% vis-a-vis the offshore Chinese yuan and the Canadian and New Zealand dollars. The weighted DXY dollar index is 0.8% higher. Treasury-compiled capital flow data reported late Tuesday revealed that a net $275.6 […] More
