Forex Market Commentary
Signs that the strong Dollar is hurting is starting to show across several sectors of the US economy like manufacturing, exports and international airline travel. although a strong currency is highly desirable in theory as a reliable store of value, in an international economy where countries are now ever more locked into each other's trade flow, a weaker currency can give an exporting nation greater competitive advantage and hurt the stronger economy if and only if companies are not able to become cost effective and competitive in the face of a local Once such illustration is Delta Airlines who have just announced on the newswires that that Q1 earnings are down 9% due to USD strength and may have to curtail some international flights as ticket sales hurt in what is largely seen as the most significant rise of the USD not seen since the days of Ronald Reagan with the colossal Paul Volcker at the helm as Chairman of the Federal Reserve.
Read on Bloomberg how US corporate profits may slow down even if the Dow hits a record next few sessions -
http://www.bloomberg.com/news/videos/2015-04-16/strong-u-s-dollar-is-hurting-corporate-profits-cuggino
On the other hand for countries in the Euro Zone with a weaker currency and counties heavily dependent upon tourism the stronger Dollar should see some benefits as weak EUR and low oil prices could spur a tourism revival this summer to boost Europe's flagging economies.
On another note Stan Druckenmiller, the billionaire investor makes 3 bold predictions for this year and next in an interview with Bloomberg. Firstly, that interest rates should rise, secondly that China should start growing rapidly again and thirdly that crude oil prices should start climbing through 2016.
See full interview on Bloomberg here -
http://www.bloomberg.com/news/articles/2015-04-15/druckenmiller-bets-on-market-surprise-with-china-boom-oil-rise
With Dollar strength currency and commodity market volatility is sure to rise through 2015.
Read on Bloomberg how US corporate profits may slow down even if the Dow hits a record next few sessions -
http://www.bloomberg.com/news/videos/2015-04-16/strong-u-s-dollar-is-hurting-corporate-profits-cuggino
On the other hand for countries in the Euro Zone with a weaker currency and counties heavily dependent upon tourism the stronger Dollar should see some benefits as weak EUR and low oil prices could spur a tourism revival this summer to boost Europe's flagging economies.
On another note Stan Druckenmiller, the billionaire investor makes 3 bold predictions for this year and next in an interview with Bloomberg. Firstly, that interest rates should rise, secondly that China should start growing rapidly again and thirdly that crude oil prices should start climbing through 2016.
See full interview on Bloomberg here -
http://www.bloomberg.com/news/articles/2015-04-15/druckenmiller-bets-on-market-surprise-with-china-boom-oil-rise
With Dollar strength currency and commodity market volatility is sure to rise through 2015.
Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.
USDX
98.366 -0.029 -0.04%
Support 97.668 Resistance 100.008
EUR
1.069230 -0.002975 -0.28%
Support 1.05290 Resistance 1.07930
Crude Oil
57.67 -0.02 -0.03%
Support 53.79 Resistance 59.87
Gold
1202.64 -3.90 -0.32%
Support 1,181.9 Resistance 1,214.1
Pieter Bergli - DeLoren Trust Holdings
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