The dollar impact on earnings

24 April, 2015

With the US in the depths of the earnings seasons, it’s noticable once again the extent to which the dollar has been impacting some of the biggest US companies. The dollar index was up nearly 9% during Q1, following on from the substantial gains of the second half of 2014. The recent Fed minutes showed the extent to which the US currency is featuring in the Fed’s thinking. As we’ve said before, the extent of the dollar rally seen since the middle of last year is unprecedented in the era of fully floating exchange rates, so we should not be that surprised that it’s causing some pain on the bottom line.

The dollar itself was under pressure yesterday, more so against the single currency and yen,less so against sterling. We remain in a much more consolidative pattern in the bigger picture, the support from the Fed outlook having waned, both from a momentum perspective and also on the fact that expectations for the first Fed move have been pushed to later in the year. For today, we have the German IFO data at 08:00 GMT, with markets expecting a further push higher on the headline index to 104.5. There are also further meetings with respect to Greece, but the single currency is pretty much immune to the headlines here, waiting for a resolution one way or the other. US durable goods data is seen later in the day.


Source link  
Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...

Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...


Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...


Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

  


Share it on:   or