Brian Dolan Dollar Quotations

We're basically just seeing a little follow-on from Friday's unemployment report. The dollar has been stronger due to the interest rate outlook.

Today's data is supporting the notion the Fed will go only one or two more times. We're in a period of dollar weakness at the moment.

Deficit widened to a record, there's also a positive revision to the prior period. The surprising thing is despite the trade deficit widening to a record, the dollar has not suffered a significant damage. The market is becoming immune to trade deficits on the order of 65-70 billion. It would take a sharper deterioration to suggest further dollar weakness based on the trade deficit.

This is going to be a short-term recovery. The dollar will continue to weaken in the next several days.

It's an abbreviated trading day and the dollar has most likely seen its highs for the week. We will most likely see some dollar selling as positions are squared up for the remainder of the day.

The immediate fallout is not especially damaging. However, we expect the dollar to remain under pressure and face new lows once short-term profit-taking has run its course and the macro picture takes hold among the money center players.