Michael Woolfolk
Michael Woolfolk
durable favorable gains given goods growth interest january market positive rate recent unlikely weigh
Given the recent spate of positive January data, CPI and durable goods are unlikely to disappoint. The USD is positioned to make new gains ... as favorable U.S. growth and interest rate differentials weigh on market sentiment.
bank canadian continues dollar federal hike narrow rates reserve
If the Bank of Canadian continues to hike rates after the Federal Reserve pauses, it will narrow the rate differential between the two. This will make the Canadian dollar more favorable.
backing dollar economic economy likely rate strong
There are strong economic fundamentals backing not only the U.S. economy but the U.S. dollar right now. We are likely to get two more rate hikes.
caught data heavy market players week wrong
Market players don't want to be caught the wrong way here going into a very heavy data week in the U.S..
attempting investors positions square
Investors are attempting to square up their positions before the long weekend.
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.
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.
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.
against appears conditions dollar ideal lows movements prices push spot supported testing
These are ideal conditions for speculators to push spot prices around. The dollar appears to be testing new lows against the yen. The price movements are not supported by fundamentals.
effect high left watching
This has had a psychological effect on the markets. For those of us left in the office, we're just watching to see just how high the 10-year will go today.