Click here to read the original article on ETFdb.com.
Related Posts:- No Related Posts
Winners and Losers of the Dollar’s Recent Ascent
November 12, 2014 at 19:00 PM EST
As the end of 2014 approaches, a few key themes are becoming evident: an unexpected drop in interest rates, the relative strength of the U.S. economy and the rally in the U.S. dollar. The dollar, as measured by the U.S. Dollar Index, has rallied roughly 10% from its spring lows and now stands at the highest level since June 2010. Relative to the Japanese yen, the dollar is trading at its best level since December 2007. The recent rally can be attributed to a number of factors including a relatively solid U.S. economy, diverging central bank policies (the U.S. is preparing to tighten while the European Central Bank and the Bank of Japan are easing), and long-term changes in trade flows, particularly around the energy sector. We expect most of these trends to continue, and here are three key implications of a rising dollar: 1. Headwind for commodities and inflation. […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
As the end of 2014 approaches, a few key themes are becoming evident: an unexpected drop in interest rates, the relative strength of the U.S. economy and the rally in the U.S. dollar. The dollar, as measured by the U.S. Dollar Index, has rallied roughly 10% from its spring lows and now stands at the highest level since June 2010. Relative to the Japanese yen, the dollar is trading at its best level since December 2007. The recent rally can be attributed to a number of factors including a relatively solid U.S. economy, diverging central bank policies (the U.S. is preparing to tighten while the European Central Bank and the Bank of Japan are easing), and long-term changes in trade flows, particularly around the energy sector. We expect most of these trends to continue, and here are three key implications of a rising dollar: 1. Headwind for commodities and inflation. […]
