Michael Woolfolk
Michael Woolfolk
compelling hike interest next rates reason
There's a compelling reason to hike interest rates at the next meeting.
bought coming decides dollars euro low market negative possible quite sent time trading vote weekend weeks
The weekend 'No' vote was deemed to be negative for the euro and has sent the euro/dollar into a new trading range. It is quite possible that in the coming weeks we could get as low as $1.20 before the market decides that it has bought enough dollars for the time being.
asian bank buying dependent states united united-states
The United States is very dependent on Asian bank buying and petrodollars.
beats certain optimistic
This certain beats even the most optimistic forecasts,
below continue data fed labor likely market raising rates remains services support view
February's data support the view that the U.S. labor market remains strong, particularly on the services side, with unemployment solidly below the 5% level. The Fed is likely to continue raising rates for the foreseeable future.
choke growth oil prevent prices recovery risen stock view
Oil prices have risen so dramatically that the view now is that this could choke off U.S. growth and prevent any recovery in the stock market.
continue economic expected fed heads interest political rates report rising risk strength underlying
The monthly GDP report fed into underlying CAD strength. With political risk subsiding, rising interest rates and fundamental economic strength are prompting CAD buying, which is expected to continue through year-end as USD/CAD heads for the 1.10 mark.
chance increased interest market mean meeting next percent rates took
The market took this to mean that there is a 100 percent chance that interest rates will be increased at the next meeting and a 75 percent chance at the meeting after that.
buy canadian economic happy investors market number shows strength willing
The market is happy with the number as it shows strength in Canada's economic growth. Investors are willing to buy the Canadian dollar.
against banks central continue dollar intervene overseas remain supported time weak
The dollar will remain supported for the time being so long as central banks overseas continue to intervene to keep their currencies weak against the U.S. dollar.
continued dollar importance interest labor market rally rate report respect
The dollar rally after the non-farm payrolls report underscores the continued importance of labor market tightness with respect to interest rate expectations.
door fed future hikes left open positive rate
The door will be left open for future rate hikes but the Fed will be increasingly data-dependent. That's positive for the U.S. dollar.
account action arguably cannot corrected current deficit grown point
The current account deficit has grown to a point where it arguably cannot be corrected by US action alone.
continued fully globally hike hikes interest march positive rate talk
The hike in March is fully priced in. The hike in May is over 80% priced in. There is already talk of continued hikes after that. Interest rate differentials globally are increasingly favoring the U.S. and it's positive for the dollar.