Investors are focusing on the new home sales figures after housing starts were so strong. Strong numbers will surely raise expectations the Fed will lift rates, boosting the dollar.
Michiyoshi Kato
numbers home strong expectations sales
Investors are pretty much focused on the home sales figures today. Weaker data will reduce expectations for further rate hikes in the U.S.
home data today expectations sales pretty
Weaker economic indicators raise the likelihood of an earlier end to Fed tightening. It will encourage dollar-selling.
encourage end
The dollar still needs a series of strong economic indicators to be buoyed.
strong series
I just came in to do office paperwork. Markets are extremely quiet today. There's hardly any trading and volume must be less than a tenth of what's normal.
today quiet normal
U.S. Consumer confidence will push up the dollar by backing speculation the Fed will raise rates further. The dollar's uptrend will likely continue today.
confidence today
U.S. Service industries data will be yet another fresh incentive to push up the dollar, strengthening expectations of Fed's further rate hikes.
data expectations fresh
Violence will surely continue to weigh on the euro.
violence
Pressured by Japanese politicians and officials, the BOJ will be unable to end its easing of the money supply any time soon. That's pretty much yen negative.
money time negative end politicians japanese pretty
The bank's brighter outlook supports the view that the BOJ may cut the reserve target around April, laying ground for a rate hike later in the year. That could be a good enough excuse to buy the yen and sell the dollar when the Fed is nearing the end of its tightening cycle.
good end excuse outlook view
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