the dollar

U.S. Balance of Payments and the Dollar

March 21, 2018

The dollar did not perform as weakly in the fourth quarter as it did earlier in 2017. Between end-2016 and end-2017, the U.S. currency lost 12.3% against the euro, 8.7% relative to the pound, 7.6% versus the Aussie dollar, 6.5% versus the loonie, 6.3% vis-a-vis the yuan, 4.3% against the Swiss franc, and 2.0% versus […] More

Factors for the Fed to Consider

August 29, 2016

When the first and so far only federal funds hike of the current cycle was implemented last December, U.S. real GDP had only risen 0.9% at an annualized rate between the summer and autumn quarters. At the start of some previous tightening cycles, U.S. real GDP had advanced much more quickly than 0.9%, to wit […] More

Focus to Shift From Fed Watching to Data Combing

August 26, 2016

In the week just ending, financial market participants were consumed with today’s scheduled speech by Janet Yellen at the K.C. Fed-sponsored Jackson Hole central banking symposium. The Fed Chair made some news by reporting progress toward the Fed goal of 2% inflation as well as its jobs growth mandate had occurred, and that the case for […] More

Investor Sentiment Spooked by Fed Official Rhetoric

March 24, 2016

Led by oil, commodity prices have dropped.  West Texas Intermediate crude oil dropped 2.5% to $38.81 per barrel after indications of rising U.S. inventories.  Comex gold edged 0.1% lower to $1,218.83 per ounce. The Shanghai Composite index of Chinese share prices fell 1.6%, most in two weeks.  Equities closed down 1.3% in Hong Kong, 1.1% […] More

Dollar Climb Resumes with a Vengeance

March 19, 2015

The post-FOMC selloff of the dollar was reversed quickly.  Overnight gains in the U.S. currency topped 1.0% against the euro (1.7%), Swissie (1.3%), and Australian dollar (1.2%).  The greenback also advanced by 0.9% against the loonie, 0.8% versus the kiwi, 0.6% relative to sterling, and 0.5% vis-a-vis the yen, but it’s 0.5% softer against the […] More