A combination of strong U.S. economic fundamentals and mixed signals from European Central Bank officials with regard to the likelihood of intervention, paved the way for the dollar to extend this week's rally. |
Although a bit lower across the board this morning, the U.S. dollar continues to adhere to its recent ranges against the world's major currencies. |
At the end of the day, this is not going to change the view that the U.S. economy is in good shape. Not going to provide any much insight as to how much the Fed has to go. So it hasn't had much of an impact on the dollar. |
But I do think it brings into question the notion of how aggressive the Fed is going to need to be in terms of raising rates in 2006. |
Deteriorating market sentiment for the U.S. economy and yesterday's less-than-ringing endorsement of the strong dollar policy by Treasury Secretary Paul O'Neill fueled the dollar's latest losses, |
Deteriorating market sentiment for the U.S. economy and yesterday's less-than-ringing endorsement of the strong dollar policy by Treasury Secretary Paul O'Neill fueled the dollar's latest losses. |
Fed speakers have been on message, and the belief is that U.S. yields will continue to improve relative to Europe, the UK and Japan, and that will continue to underpin the dollar, |
He carries a lot of credibility in the marketplace. He's well respected in terms of his knowledge and his experience at the Fed. He is seen as very capable and credible that would prove reassuring in the near term, |
I believe the Fed will go ahead and raise rates on Jan 31 and in addition I believe it will raise at the following meeting in March. |
I still think the dollar is suffering from residual effects from yesterday's disappointment over the U.S. data. That's got the markets questioning a bit the U.S. economy's rosy outlook. |
If, in the days going forward, Japan does not make good on its promise (of weakening its currency), market sentiment could shift back in favor of the yen. |
It appears that the slowdown in the U.S economy was slower than anticipated, |
It confirms the Fed's optimistic assessment of the U.S. economy, and essentially signals that the Fed's measured (monetary policy) tightening campaign will persist, |
It confirms the Fed's optimistic assessment of the U.S. economy, and essentially signals that the Fed's measured (monetary policy) tightening campaign will persist. |
It enhances the dollar's interest rate appeal relative to the euro, pound and yen, |