Sat Mar 23, 2024 11:33 pm by globalturbo
The Dollar Is Undergoing A Major Change In Behavior, And Almost No One Has Noticed
Posted on March 8, 2013 by END TIME HEADLINES
In recent years, the story has been that a weak U.S. dollar was good for
U.S. stocks. The rationale was that a weak dollar makes American goods
cheaper to foreign buyers. However, that trend has reversed
meaningfully since the beginning of the year. From Morgan Stanley‘s FX team
(emphasis ours): While the market has focused on how the change in
global monetary policy is impacting the JPY and GBP, we would also
suggest that the USD is undergoing a significant change in behavior as a
result of global monetary policy shifts. Until now, this has been
largely overlooked, but we are increasingly of the view that investors
will start to see the US has an investment destination, reducing the
USD’s traditional funding currency status. Indeed, the USD has
outperformed since the beginning of the year, in what would
traditionally be seen as a broadly risk positive environment. Equity
markets globally rallied strongly, with US equity markets leading the
way, allowing the Dow to reach record new highs. This outperformance of
US asset markets is a positive for the USD in the current environment,
in our view. More
Gold Warnings Surge as Banks Jump Off Bandwagon – Nomura forecast gold prices will fall in 2013, on Thursday, becoming the latest bank to turn bearish on the precious metal which has been a favorite hedge for investors who fear aggressive monetary stimulus will
lead to rising inflation. ”For the first time since 2008, in our view,
the investment environment for gold is deteriorating as economic
recovery, rising interest rates and still benign Western inflation (for
now) will likely leave some investors rethinking their cumulative $240
billion investment in gold over the past four years,” wrote Nomura
analysts in a sector note on Thursday. In the note, Nomura cut its 2013
forecast for gold to $1,602 per ounce from $1,981, and its 2014 forecast
to $1,750 from $1,800. More
Thanks to: http://endtimeheadlines.wordpress.com
Posted on March 8, 2013 by END TIME HEADLINES
In recent years, the story has been that a weak U.S. dollar was good for
U.S. stocks. The rationale was that a weak dollar makes American goods
cheaper to foreign buyers. However, that trend has reversed
meaningfully since the beginning of the year. From Morgan Stanley‘s FX team
(emphasis ours): While the market has focused on how the change in
global monetary policy is impacting the JPY and GBP, we would also
suggest that the USD is undergoing a significant change in behavior as a
result of global monetary policy shifts. Until now, this has been
largely overlooked, but we are increasingly of the view that investors
will start to see the US has an investment destination, reducing the
USD’s traditional funding currency status. Indeed, the USD has
outperformed since the beginning of the year, in what would
traditionally be seen as a broadly risk positive environment. Equity
markets globally rallied strongly, with US equity markets leading the
way, allowing the Dow to reach record new highs. This outperformance of
US asset markets is a positive for the USD in the current environment,
in our view. More
Gold Warnings Surge as Banks Jump Off Bandwagon – Nomura forecast gold prices will fall in 2013, on Thursday, becoming the latest bank to turn bearish on the precious metal which has been a favorite hedge for investors who fear aggressive monetary stimulus willlead to rising inflation. ”For the first time since 2008, in our view,
the investment environment for gold is deteriorating as economic
recovery, rising interest rates and still benign Western inflation (for
now) will likely leave some investors rethinking their cumulative $240
billion investment in gold over the past four years,” wrote Nomura
analysts in a sector note on Thursday. In the note, Nomura cut its 2013
forecast for gold to $1,602 per ounce from $1,981, and its 2014 forecast
to $1,750 from $1,800. More
Thanks to: http://endtimeheadlines.wordpress.com
