There is enough strength in this report to suggest at least one more hike from the Fed and possibly more.
Interest-rate support for the Australian dollar will lessen quite substantially as the year progresses. We see a steady outlook from the Reserve Bank of Australia and a higher Fed rate.
The current phase of the dollar's rally is starting to look mature.
Part of the reason for the dollar's weakness today is positioning,
This might be a slight dollar negative. The key was the core which was bang on expectations at 0.2 percent. So there's not much inflation there.
inflation concerns were not really new news and not prevalent in the market.
Yields were very important in 2005; we think they'll be important again over the early part of 2006. Over the first half of the year we think the dollar will do a little better on interest rates.
One of the reasons for the choppiness today is because of a fairly steady stream of comments coming out of the euro zone on the currency,
At the start of the year, the investment community was very bullish on Asia. The currencies' performance is clearly surprising.
At the start of the year, the investment community was very bullish on Asia, ... The currencies' performance is clearly surprising.
