Michael Woolfolk
Michael Woolfolk
attempting investors positions square
Investors are attempting to square up their positions before the long weekend.
dollar fed interest looks provide rate supporting time until
Interest rate differentials are supporting the U.S. dollar for the time being. Until the Fed pauses, it looks that's going to provide support for dollar bulls.
continue dips fed indicate inflation likely raise wage
If unemployment dips any lower, that may indicate some wage inflation and the Fed will likely continue to raise rates.
bank changing close fiscal japan march monetary movements policy year
The Bank of Japan is not going to be changing its monetary policy before the fiscal year end on March 31. As corporations close down their books, they don't want any pronounced movements in the dollar-yen rate.
above argue conditions dollar federal funds growth later rate strong target tight viewed
Strong growth and tight labor-market conditions argue for preemptive tightening that could very well take the federal funds target rate above 5% later this year. This is viewed as a dollar positive.
anecdotal due evidence floor flows greater impact level lighter lower market point seeing trading
Anecdotal evidence on the trading floor indicates things have been lighter than at any other point in the week. You are seeing some one-off flows that are making a greater impact in the market due to this lower level of liquidity and volume.
dollar faster fed giving itself later pace positive raise rates removal room word
The removal of the word 'measured' ... would be positive for the dollar as it suggests that the Fed is giving itself room to raise rates at a faster pace later this year.
buy economic investors less low positive rates risks willing
There's a very positive economic story of investors being more willing to take risks and buy equities and less willing to take low rates on bonds.
ability deficit given indication market rally strong strongly trade
The US dollar's ability to rally strongly off a better-than-expected trade deficit is a strong indication that the market hasn't yet given up on the dollar.
ability deficit given indication market rally strongly trade
The U.S. dollar's ability to rally strongly off a better-than-expected trade deficit is a strong indication that the market hasn't yet given up on the dollar.
consumers dollar economy heading keeping next spending strength
Consumers are out there spending and keeping the economy alive. We see dollar strength heading into next year.
appears bank buying consistent easing economy indication japan japanese prompt returning viewed
This morning's announcement by the Bank of Japan to end quantitative easing is being viewed as an indication that the Japanese economy is returning to health, but appears insufficient to prompt any consistent yen buying as of yet.
friday quite
There was quite a sell-off on Friday and it may have been overblown.
bank changing japan monetary strength
There was yen strength on the anticipation the Bank of Japan could be changing its monetary policy. Those expectations have been curbed.