But I am not sure (whether) the Australian dollar is a forward indicator or just a concurrent one. |
But it's nothing really fundamental: Is it interest rates backing up in the U.S.? Rate expectations backing up? Or the fact that the dollar fell too far too fast last week? It's probably a combination of all of that. |
Investors got too excited about a near-term policy change. This is probably not the time to bet on yen strength. We need to add more fuel to the fire to get going. |
Market investors appear to be looking ahead to the end of the Fed tightening cycle and its implications for the dollar. |
Reinforcement of imbalances and lack of saving in the United States is not dollar-friendly. |
The Australian dollar is relatively more sensitive to the global growth cycle -- not just commodities, but leverage to trade with Asia, especially China. |
The dollar is gradually moving out of its sweet spot. Once the Fed's tightening cycle is over, dollar bears are going to focus on the current-account deficit again. |
The Fed statement hasn't made me change my focus on data. I still think that those that will be important are those that give us a sense of capacity constraints and inflation. |
The risks for the dollar are skewed to the upside. |
There could be a cyclical surprise...If we see another sharp rise in core inflation or see activity data to the upside, there's a danger that the market could be caught off balance. |
Through the Q & A, we should get a sense of where he sees the balance of risks ... A lot of people think he is relatively more inclined to be more dovish. But if he comes across as very concerned about price stability, I think that could surprise expectations to some degree. |
We saw a lot of dollar selling last week, so the dollar's regaining some lost territory. |
What you really need for the yen to strengthen is some clarity on when ZIRP will end. ZIRP is key. |