Michael Woolfolk
Michael Woolfolk
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.
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.
benign canadian dollar inflation
Benign inflation has weakened the Canadian dollar a little bit.
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.
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.
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.
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.
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.
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.
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.
friday quite
There was quite a sell-off on Friday and it may have been overblown.
attempting investors positions square
Investors are attempting to square up their positions before the long weekend.
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.
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.