Dollar breaks down

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The dollar was struggling to sustain upticks when the market anticipated a million new jobs were created in April.  It was sold off in disappointment that only a quarter of the expected jobs materialized.   Despite the inexplicable miss, there is little doubt that the US economy is, in fact, booming.  A large dose of fiscal stimulus, ongoing monetary stimulus, a relatively successful vaccine rollout, the re-opening of the economy, pent-up demand, the wealth effect of rising equities and home prices (and crypto) make for powerful fuel for the world’s largest economy.  

We suggest that is the signal, and the disappointing job report is noise that is truly only worrisome if it is repeated. Nor should the dollar’s weakness be understood to portend a weak economy.  On the contrary, the record trade deficit and the 18.51 vehicles sold (seasonally adjusted pace), which was the fifth-best in history, speaks to the relative and…

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