Strong U.S. Dollar

The euro shouldn’t be kicking around U.S. companies’ earnings any more.

It caught fire on Thursday, jumping 1.8% against the dollar after the European Central Bank announced a fresh round of stimulus measures while playing down the potential for more rate cuts. That caught traders who had forecast a widening divergence between ECB and Federal Reserve policies off guard, making for a violent swing.

For equity investors, however, what happened to the euro last week matters less than what happened to it about a year ago. That was when its sharp decline, which had started in mid-2014, finally abated. Indeed, as of Friday the euro was up 6.2% from a year earlier.

The euro matters far more for U.S. multinationals than the overall economy. While the currency area counts for just 15% of U.S. exports, Commerce Department figures show that as of 2013 euro-area operations account for about 40% of the sales of majority-owned affiliates of U.S. multinationals abroad. Japan, by contrast, accounted for about 4% of those sales.

the source

4% rise in international visitor numbers in Americas in first half of 2016

The UNWTO World Tourism Barometer reports that international arrivals in the Americas increased by 4% in the first half of 2016, led by Central America and South America. Europe (+3%) showed mixed results, with solid growth in many destinations offset by weaker performance in others.

“Tourism has proven to be one of the most resilient economic sectors worldwide,” said UNWTO Secretary-General, Taleb Rifai. “It is creating jobs for millions, at a time when providing perspectives for a better future to people of all regions is one of our biggest challenges. But tourism is also creating bonds among people of all nations and backgrounds, bringing down stereotypes and ghting fear and distrust.”

the source

It doesn't matter if the US Dollar strong or not. If you're trading with unreliable broker, you will definitely loose your money in the end in any case as I lost mine when Exness broker has suddenly changed the margin requirements.

In the present time, what we are actually experiencing? We observe that many countries are having internal conflict which is leading uncertain values of currencies. For this reason, traders need to keep their movements updated with the use of various analytical tools. However, USD is the major currency that is demanding in nature. And thanks for providing important signals on this currency as I am a major currency pair trader.

Overnight index swaps are not pricing in a rate cut at the upcoming FOMC meeting on April 29, though the subsequent press briefing and commentary therein may induce cross-asset volatility. The US Dollar may rise if Fed Chairman Jerome Powell paints a worrisome picture for global growth in light of the coronavirus pandemic as the central banks pumps trillions of dollars of liquidity into the financial system.

At the time of writing, the Fed’s balance sheet stands over $6.6 trillion. In an attempt to calm inter-bank stress, monetary authorities also announced a temporary suspension on limits of uncollateralized intraday credit exchanges. However, the most controversial measure – arguably – that the Fed has done is agree to purchase junk-rated bonds as part of its broader asset-purchasing policy measure.

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• Scope for further declines in the US Dollar could narrow
• Markets were reminded of volatility risk as S&P 500 sank
• Key risks: retail sales, Powell, virus wave, balance sheet

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The US Dollar may bottom out in a jam-packed week of event risk that could rekindle market volatility. All eyes are on the Fed, US GDP, the earnings season and more fiscal stimulus.

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With the markets focused on coronavirus vaccines, it was easy to miss news last week that Poland and Hungary have blocked the EU’s recovery fund; another potential negative for the Euro.

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The S&P 500 declined as the Russell 2000 soared as markets digested Joe Biden’s fiscal package. Gold prices sank as the US Dollar shined. The week ahead is fairly busy, with bank and tech earnings,...

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