All About the Dollar
After enjoying a strong October following a disappointing Q3, equity markets are presently focusing on currency markets, specifically the U.S. dollar. With global central bankers currently easing monetary policy and the expectation that our Federal Reserve will tighten policy next month, the U.S. dollar has risen dramatically in the past few weeks. As the dollar index is now approaching the Spring highs, the markets have presently stalled as they factor in the negative earnings consequences resulting from a stronger dollar. Should the U.S. currency stabilize or decline in the coming weeks, our equity markets will take comfort in this development; it is all about the dollar.