In recent years, the U.S. economy has consistently outperformed expectations. |
In the past, a number like that could have hurt the euro. But sentiment has changed now with the euro trending higher. |
Intervention can be effective in the short term, but it doesn't do much to arrest the bigger issues. The market would appreciate structural reforms, such as tax reform, labor reform and pension reform. |
Intervention can play a role, so long as it doesn't become too predictable. You want to keep the market guessing. |
It is a possibility that you cannot ignore, |
It is premature to believe that Middle East tensions have been resolved or that the equity markets have bottomed out, |
It looks like there will be a soft landing, if there is any landing at all. |
It may be difficult for the dollar to sustain the overbought levels it reached against the euro in the past year, |
It may be difficult for the dollar to sustain the overbought levels it reached against the euro in the past year. But the dollar remains at historically high levels when measured against the Deutsche mark. |
It's not helpful for the dollar, but again, it's not much of a surprise. |
It's obvious the market isn't buying into a weak U.S. economy story despite the unexpected softness in Friday's data. |
It's partly a momentum move. |
Meanwhile, the market already has recognized that the Fed is in a more-aggressive stance, so it is difficult to get more mileage out of that story. |
Most market participants didn't believe there would be ECB intervention, let alone coordinated intervention with the United States, |
Most market participants didn't believe there would be ECB intervention, let alone coordinated intervention with the United States. |