David Mozina
David Mozina
components interest looking people rate sensitive
People are looking at any interest rate sensitive components as a precursor of what's to come.
both data dollars fed future help looking market pieces reason sell shape soft
Those two pieces of data will help shape future Fed policy, and both were on the soft side. The market was looking for any reason to sell dollars and they had two.
becoming coming dollar economy optimistic outlook respect start
We're still very optimistic with respect to the outlook for the U.S. economy in the coming quarters. Interest-rate spreads are probably going to start becoming more dollar positive.
best convinced dollar early market moved stance
It is too early to write the dollar off just yet. I'm not convinced that the best is over for the dollar. The market has moved to a stance that is too dovish on the Fed.
almost basis daily higher pushing seems yields
It seems almost on a daily basis yields are pushing higher in Japan.
dollar embedded firmly quarter zealand
New Zealand is one quarter away from recession. The New Zealand dollar is firmly embedded in a long-term decline.
backdrop dollar expect favorable lead next strength
The backdrop is very favorable and I would expect dollar strength in the lead up to the next FOMC meeting.
concern price slightly
It was slightly dollar-positive. The price component, it's still bubbling. That is of concern to the Fed.
bank financial interest japan pushing rates until
Until you get ... the Bank of Japan actually pushing interest rates (higher) and not just jawboning the financial markets, I don't think the yen is going to find long-lasting support.
concerns data dollar good interest keeps looks margin rate widening
We still have widening interest rate spreads ... so the dollar looks good and today's data at the margin just keeps inflationary concerns bubbling.
argument coming forceful rate
The rate argument is coming back in a very forceful manner.
action ammunition data economy fed further provides
The data provides enough ammunition for further Fed action but also confirms that the U.S. economy has legs.
dominated events last outside week
This last week has been dominated by events outside the U.S. and these events have been broadly dollar-negative.
concerns damage drumming economy fears hurricane katrina positive
This is drumming up fears that the damage to the economy from Hurricane Katrina will be exacerbated by Rita. Before concerns over Rita, the short-term fundamentals were positive for the dollar.