All this has helped underpin a dollar bullish view and almost makes a rate hike on Nov 1 a certainty. |
Anything that would suggest a deteriorating appetite for US financial assets would undermine the dollar. |
As far as interest rates are concerned, zero growth puts a 50 basis points cut back on the agenda at this week's Federal Open Market Committee meeting. |
As far as the European Central Bank is concerned, they remain inflexible. Recent inflation numbers suggest that there's been some rounding up of prices as a result of the introduction of the euro. That means that the room to maneuver cutting interest rates is limited. That's a negative for the currency. There's also political risk from French and German elections this year, |
Even allowing for the GDP upward revision, the data today has generally been regarded as disappointing and has taken the steam out of the dollar. |
Even allowing for the GDP upward revision, the data today has generally been regarded as disappointing and take the steam out of the dollar. |
I think that looking forward we'll start to see strong economic growth, ... I'm fairly optimistic that the economy will start to pull through in the next 12 to 18 months. |
It is encouraging that the recovery is starting to build and today's data supports the prospect of a rate hike soon. |
It's not clear how China will deliver further currency flexibility but certainly the pace of appreciation of the Chinese currency has picked up. |
The current account numbers were pretty awful and put pressure on the sterling. |
The dollar has started the week on a firm note and the ISM numbers this afternoon are expected to confirm improving confidence. |
The dollar is going to prove resilient, and we could see further gains. Higher rates have supported the dollar all year, and with more work to do by the Fed, I can't see that changing. |
The initial reaction was to sell the dollar, presumably in the notion that the core rates don't warrant aggressive action from the Fed. |
The market is having a re-think about the Fed's intention on interest rates. |
The theme this morning is an increased awareness of the terrorist threat, which is benefiting the Swiss franc in its traditional role as a safe-haven currency. |