We are getting a consistent view from the Fed now that they are somewhat worried about the risk of a higher inflation rate. That is going to cause more rate hikes to come and higher yields will help the dollar.
Jobless claims helped (the U.S. dollar), but we're looking ahead to tomorrow and next week at this point.
Overall, the ISM number is definitely a strong figure, as well as the construction spending report, which is much higher than expected.
The factory orders report was very slightly better than expected, although after revisions it was pretty much spot on what the market was expecting.
There are continued expectations of more Fed rate increases, whereas with other central banks we may only see a one- off move here and there. The reasons to be in the dollar outweigh any other currency.
The trade balance was narrower than expected, so that should push most (U.S.) GDP forecasts toward 5 percent in the first quarter,
The price index came in higher and that kind of confirms expectations for at least two more rate hikes from the Fed.
The risk if you are a dollar hawk is they show they are closer to neutrality and if you are a dollar dove that they show no evidence of being done.
The risks for the dollar are probably pretty even going into this Fed meeting.
It was all one way. It was just a matter of momentum picking up after 8 a.m..
Even though the data has been inflationary and indicative of a stronger economy, comments from the Fed suggest they're going to wait and see.
There's shift in ranges, but still nobody's going to mistake this for a clear trend reversal or anything.
This reiterates the view of many that a quarter point per meeting for the rest of this year is in the cards,
If unit labor costs are not increasing as much as we initially expected, that would get the Fed to pause (rate hikes) sooner than expected.
Consumers have been the strongest piece of this economy, so if we see some weakness in retail sales, and the Michigan survey should be off on Friday, we should see the euro win the benefit of the doubt,
Interest-rate differentials are what are helping the dollar right now. The difference between U.S. and other investment horizons has widened of late.
The dollar is definitely swimming against the tide, trying to make further gains against the twin deficits.
The dollar is starting to show some gains as the report came in stronger than expected across the board; new orders, employment, prices paid.
The dollar is weaker initially across the board after the release of the minutes. On your first read through you get the indication they may not be as aggressive as some had been predicting.
The dollar reacted to data strength initially, but for the euro there is buying interest around $1.2230.
The dollar should remain firm. The ECB may not be as aggressive as the Fed and that should lead to dollar gains in 2006.
That really backed up the fact that strength is still expected in the economy, which means more rate hikes to keep inflation at bay, so that has supported the dollar this afternoon.
The report was spot on expectations, signaling continued growth in the U.S. employment sector. It should bode well for the economy, but the reaction is null and void in the market as we await Greenspan.
It's a continuation of the trend we've seen.
Come the Fed meetings around April, May, June next year, this may have an impact.
The market's focused on the potential for the Fed to pause. That could be sooner rather than later.
