There seems little on the horizon to break the circuit inĪnd the euro is likely to remain low for some time. Meanwhile, wealthier nations are heading into deflationary territory, which, as US Equity markets are at record highs and remain a key risk to the US economy if investor confidence was to be rattled by some unforeseen event.ĭebt-laden southern nations, particularly This pushes our dollar down and is good news forĮxporters. In the US, growth is accelerating and confidence is high.Let’s take a look at the big pieces of the puzzle: And the factors in the global economic equation are now more complex and disparate than they have been for some time. There are always so many variables at play. The creep towards parity with the Aussie dollar - the kiwi was trading at about A95c yesterday - won’t necessarily be derailed by the US comeback - in fact it could be exacerbated.īut picking currency moves is fraught with danger. The kiwi should fall too, although perhaps - with dairy prices stabilising - not quite so much. Immediately after the news on Saturday the Aussie dollar hit its lowest point in six years against the US. In theory it should come under pressure as markets react. The greenback soared on the news - hitting its highest level against the euro since 2003. That’s also a figure which is in the US Federal Reserve’s range to be considered as full employment.Īnd that was enough to reassure markets that the bank is still on track to lift US interest rates by September, perhaps even June. But the stronger than expected jobs report released over the weekend exceeded market expectations and showed unemployment in the US has now fallen to 5.5 per cent - the lowest in almost seven years. The US economy continues to surge back to life, moving into territory which some economists describe as “full employment”.Īmericans who are still without a job may disagree.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |